Experts: 10 Steps That Help Retirees Cut Their Monthly Bills
You want to enjoy your golden years, but living on a fixed income is tricky. Whether you’re newly retired or have been out of the workforce for years, there are likely money-saving ideas you haven’t yet explored.
Making a serious effort to reduce at least some of your monthly bills is wise, helping safeguard your cash. Retirement should be a time to relax, so you don’t want to run out of money and find yourself having to go back to work.
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Thankfully, even making a few simple adjustments allows you to enjoy your savings, putting more money back into your monthly budget or padding your savings.
GOBankingRates spoke with two wealth managers to discover ways to reduce your monthly bills in retirement. Here are 10 tips they shared to help you start cutting costs immediately.
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Utilizing Senior Discounts
Many businesses — both local and national chains — offer senior discounts, helping you to save money.
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“Seniors can score deals on everything from groceries to movie tickets, helping stretch those retirement dollars,” said Alex Doyle, CFP and wealth manager at Woodson Wealth Management. “Some discounts are offered anytime, while others are certain days and times. Keep an eye out for these offers and if you’re unsure if a business offers one, don’t hesitate to ask.”
Optimizing Healthcare Costs
Retirement means you’re likely no longer part of an employer-sponsored healthcare plan, but it’s still important to get the care you need.
“Healthcare can be a big expense, but there are ways to keep costs down,” said Doyle. “Exploring Medicare options and finding the right insurance plans can make a huge difference.”
Managing Debt
Retiring with debt means less monthly income to enjoy.
“Saying goodbye to pesky debts like credit cards and loans has been a game-changer for many retirees,” said Doyle. “It frees up cash for more exciting things, like travel or hobbies.”
It’s best to do everything in your power to handle debt before retiring, but if you can’t, Cliff Ambrose, founder of Federal Retirement Consultant and wealth manager at Apex, recommended refinancing.
“Explore opportunities to refinance high-interest debts, such as credit card balances or loans, into lower interest rate options,” said Ambrose. “Refinancing can help lower monthly payments and reduce overall interest expenses.”
Budget Evaluation
There’s a good chance you’re spending more than necessary in at least a few areas. Ambrose recommended thoroughly reviewing your budget to identify areas to cut back or eliminate costs.
“This may involve tracking spending habits and identifying non-essential expenses,” said Ambrose.
Downsizing
If your kids are now adults, you might not need that big house in a good school district anymore. Ambrose recommends moving to a smaller home or relocating to areas with a lower cost of living.
“This can significantly reduce housing-related expenses like mortgage payments, property taxes and maintenance costs,” said Ambrose.
Utility Usage Reduction
Utilities are essential, but it’s possible to lower your bills without an ounce of discomfort.
“Implement energy-saving measures to reduce utility bills,” said Ambrose. “This may include installing energy-efficient appliances, using programmable thermostats and practicing water conservation techniques.”
Insurance Review
Proper insurance is a must but overpaying for it isn’t. Consequently, Ambrose encouraged reviewing your health, auto and homeowners insurance to ensure you’re getting the best coverage at the most competitive rates.
“Adjusting coverage levels or switching providers can lead to significant savings,” said Ambrose.
Transportation Alternatives
Your current vehicle might’ve been a good fit pre-retirement, but switching things up can allow you to save money.
“Explore alternative transportation options to reduce fuel and maintenance costs associated with owning a car,” said Ambrose. “This may involve using public transportation, carpooling or downsizing to a more fuel-efficient vehicle.”
Entertainment and Subscription Services
You may be paying for subscription services you never use or even forgotten you have.
“Evaluate entertainment and subscription services to determine which ones are essential and which can be eliminated or replaced with more cost-effective alternatives,” said Ambrose. “This includes streaming services, gym memberships, magazine subscriptions, etc.”
Meal Planning and Grocery Shopping
Inflation has caused food prices to soar. Now that you’re retired, it’s more important than ever to stick to a food budget.
“Plan meals, create grocery lists and shop strategically to minimize food waste and lower grocery bills,” said Ambrose. “Cooking at home rather than dining out can also lead to significant savings over time.”
Of course, this doesn’t mean you should never dine out, but keep tabs on how much you’re spending. Set a budget for restaurants and be strict about sticking to it.
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