Neale Godfrey, a financial literacy expert, begins her article in Kiplinger, with a dose of reality.
Are you sick and tired of having financial pundits yell at you about not saving enough for retirement? I am. They scare retirees into believing that because the average person has not saved enough, that they are doomed to a life of horrible choices. Because of their longer life spans and often smaller savings, this can be especially scary for women.
Once that is out of the way, Godfrey addresses a growing trend in group living, which she calls “Pods”. She asks, Why stare into a black hole of uncertainty for retirement living? Why not start planning your future life with friends? Living with people you know can be a way to share expenses, talents and hobbies.
She contends that you don’t need to be committed to the idea of “Podding”. But by thinking and talking about it at least not operating with your head in the sand about the future. You never know it might just be a fit once you start exploring the idea.
She suggests starting with a checklist that includes: How many people will be in the house? You make like having people around, but not always. And yes, you need your own private bathroom. Also, what’s your monthly expense for what could be shared costs? Rent/mortgage, utilities, taxes and upkeep, etc. She provides a worksheet to do your own calculations.
However you configure it,
Sharing your Pod translates directly into saving money. This can mean that your savings will last longer, and your retirement income will go further. For some, it may be the difference between scraping by and living comfortably. It may make the difference between living how and where you want to live, and living how and where you haveto live.
The idea of Podding is worth considering and sketching out with some friends. If you set your boundaries and design a grouping that works for you the savings and human connection can be surprising.
As the song goes, people need people.
Read the full article: Why Live Alone in Retirement? Form a Pod Instead
Photo by: Fabrice Florin on Flickr