3 Ways to Maximize a Public Service Pension

Living on a public service pension may not be quite as easy as it used to be. With changes in the economy, many public service jobs have eliminated pensions all together. Even if they do keep the pension plans, they may not be able to pay you as much as they once did. Some city governments are even filing for bankruptcy, which can really ruin your retirement. Therefore, if you have a pension after a career in public service work, you are fortunate. Even if your pension is not as big as you anticipated, there are ways that you can maximize it as you go. Stretching your pension dollars is important if you are going to depend on it in your remaining years. Here are a few tips for maximizing your public service pension.

Save as You Go

When you know that you are going to be living on a limited pension in the future, you need to make sure that you save as you go. Planning ahead for life with a pension will make a big difference. If you can save some money prior to living on your pension, you can live a much more comfortable life. This way you can limit your need for the pension a little once you reach retirement age. You could do this through the use of another type of individual retirement account such as an IRA. Even if you only put back a few dollars every month, it can make a huge difference by the time you reach retirement. This small step will help you maximize your public service pension when it comes time to use it. 

Cut Back

Many people frivolously spend their paycheck on things that they do not need. You should take every chance that you get to cut back on unnecessary expenses. Little extras can add up in a hurry. Many have heard the example of what people are throwing away by spending $5 a day on a latte and bagel. While it might not seem like much at the time, it can add up to a substantial amount of money over the years. During your working years, it can be a nice way to save a little bit of money. 

Take Advantage of Deals

Another way that you can maximize your limited pension money is to take advantage of deals when they come around. Many people forget about the power of using coupons in their everyday shopping. Using coupons and special offers can add up to a substantial savings over time. If you can save just a few dollars every time you go to the store, it can make a big difference in the grand scheme of things. 

When you are planning on living on a public service pension, you may not be able to live extravagantly. You will have to take advantage of opportunities as they come and try to cut back on a few things to make it possible. 

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