To maximize your retirement savings, it’s a good idea to reevaluate your monthly subscriptions, especially your internet plan, which might have been unchanged for quite some time.
Many retirees continue with the same internet plan from their working days, possibly shelling out for speeds and features they no longer need. Others might cut back too much, leading to unstable connections during video calls with grandchildren or frustrating experiences while streaming shows and attending telehealth appointments.
The objective is to find a balance: you want reliable service that suits your retirement lifestyle and budget.
There are more internet service options available now than ever. According to Bruce Leichtman, president of Leichtman Research Group, which studies the broadband landscape in the U.S., the most common service providers include:
- A traditional telephone company offering high-speed internet through fiber optic cables.
- A cable company bundling internet service with cable TV.
- A mobile phone carrier that supplies home internet.
- Companies providing fixed wireless internet, which is growing quickly but is generally slower than wired options.
Here are some steps to help you choose the right internet plan for your retirement.
Identify Your Needs
Many providers have “good,” “better,” and “best” tiers with increasing monthly fees. The “Good” tier usually offers 100 Mbps for downloads and 20 Mbps for uploads, which is the minimum speed classified as “broadband” by the Federal Communications Commission (FCC). The “better” tier generally provides 300-500 Mbps for downloads and 50-100 Mbps for uploads, while the “best” tier can range from 800 Mbps to over 1 Gigabit for downloads.
Some providers pitch plans with even faster speeds. However, you should avoid getting lured in by these. Eric Griffith, a senior features editor at PCMag, notes that anything beyond 500 Mbps is often unnecessary.
The basic 100/20 Mbps plan is perfectly suitable for many couples. Griffith explains, “This is enough if one person is streaming Netflix while the other browses the web,” making it a solid option for empty nesters.
It might be wise to start with the lowest tier. If it meets your needs, great—your monthly costs remain down. But if you find you want faster speeds, for example, if grandchildren frequently visit or if you do a lot of streaming, you can always upgrade later, according to Griffith.
