Saving Money During Retirement
Retirement can come quicker than you think. While you might be dreaming about the free time and relaxation, the truth of the matter is that most people don’t have enough money saved to enjoy retirement the way they had hoped to. But that doesn't have to be the case.
From downsizing and thrift shopping to loyalty programs and government benefits, here are 42 ways to save money during retirement.
Downsize Your Home
One of the best ways to save money once you retire is to downsize your home.
Aside from a lower mortgage, moving to a smaller and less expensive home can also save you a significant amount of money on property taxes and maintenance costs.
Utility bills may also turn out to cost less since you are not heating and/or cooling as much space.
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Sell And Rent Instead
Downsizing can also make you money, depending on your home equity. Some people are able to sell their home when they retire, and have a substantial amount of equity left in their pockets.
If you choose to rent instead of buy after selling your home, you can save money by avoiding additional costs like property taxes and maintenance.
Relocate Entirely
If you’re willing to downsize your home upon retirement, you might consider relocating to a different city or state. Housing costs vary based on location, and you may be able to find cheaper homes (and cheaper interest rates) somewhere else.
Relocation: Cost Of Living
In addition to housing, the cost of living varies based on location as well. Which means that your monthly expenses in general could be lower.
Everything from utility expenses to grocery prices vary based on location.
Rent Or Borrow Instead
Aside from home ownership, you should also consider renting any equipment you may need (or borrowing from a neighbor or friend) rather than buying. Most people find retirement is a good time to downsize in all aspects of life. Having less stuff makes for a more peaceful home.
Rent Equipment
Everything from tools to household appliances can be rented. If you only need to use something once or twice, consider renting it as needed rather than purchasing brand new for a much higher cost.
Of course, borrowing from friends and family would be the ultimate savings plan here.
Take Advantage Of Discounts
The majority of retirees are seniors. The advantage that comes with this milestone age are discounts. Various stores offer discounts to seniors or retirees—which can save you a few bucks on your most used products.
Shop at stores that offer a seniors discount and take full advantage.
Discounts
Other discounts to take advantage of involve transportation. If you live in the city and have public transportation available, ask for seniors discounts on a daily, weekly, or monthly bus pass.
Car insurance companies may also offer discounts to seniors, or they may offer discounts when you change your driving behavior—such as driving less often.
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Downsize Your Vehicle
Speaking of vehicles, another way to save money in retirement is to downsize your vehicle. If you have car payments, you might consider selling your car and buying used—avoiding future payments.
You can also save money on gas by buying a smaller vehicle, or a more fuel-efficient model.
Get Rid Of A Vehicle Entirely
In addition to switching up what you drive, you might consider getting rid of your car completely. This is most beneficial if you are a two-vehicle household with two retirees.
There may not be a need to own two vehicles if you are both retired. Consider selling one completely and cutting that entire expense.
Consider A Side Gig
It’s understandable that most people retire for a reason—so they no longer have to work. So, working during retirement sounds anything but appealing.
A retirement side gig is easier than you think, though.
Retirement Side Gigs
Examples of retirement side gigs include providing basic home maintenance to friends and neighbors, or basic cleaning services.
If you are able bodied, you can grocery shop for others when you do your own weekly shop, and deliver the groceries for a small, but helpful fee.
Make Money Off Your Hobbies
Similar to side gigs, you can make some extra cash during retirement using your hobbies.
Perhaps you’re a skilled painter or woodworker, or you enjoy knitting or photography. Sell your paintings or bird houses, or join vendor events and set up a table of all your crafts.
If anything, the profit from your hobbies can fund your groceries or gas expenses.
Review Your Utility Bills
This can help in two ways: discounts and cutting expenses entirely.
Find out if your utility companies offer senior discounts (most likely cell phone companies or cable companies). Some utility companies offer different payment plans to seniors, or full discounts to low-income individuals.
Cut The Costs
As mentioned previously, reviewing your utility bills can help you determine which ones to cut to save you money.
And in addition to utilities, most people in today’s world end up with another particularly big expense that is both redundant and unnecessary.
Ditch The Extra Entertainment
Entertainment costs include things like cable TV, streaming services, and a-la-carte programming.
Most people in general do not need all of this. With all of the streaming services available these days, you can likely cut your cable bill entirely and rely only on streaming.
Or, cut the number of streaming services you pay for each month, including a-la-carte channels like Paramount+ or HBO.
Join The Online World
In relation to streaming services, another way to save is to join the online world and take advantage of the countless ways to save money using your phone.
This includes coupon apps, online marketplaces, loyalty programs, and even online retailers.
Join Loyalty Programs
One of the best ways for anyone to save money is to take advantage of loyalty programs—specifically when it comes to groceries.
There are many different loyalty programs that build points that can be redeemed for instant cash. Some loyalty programs offer discounts on purchases if you are a member. This includes groceries, gas, clothing, and more.
Practice Meal Planning
Meal planning may sound like a younger generation thing, but they seem to be on to something.
Meal planning can save you money simply by sticking to a list or menu. Plan your meals for the week and shop accordingly.
Meal portioning also reduces the chance of over-cooking and tossing leftovers.
Canning And Preserving
Another way to save money on groceries is to harvest your own. Consider setting up a small (or big, depending on your space) garden for your seasonal veggies.
Once the season is over, harvest and preserve them. Thanks to rising food costs, many households are bringing back the art of canning—which can supply you with food all year round.
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Save On Healthcare With Telemedicine
Depending on where you live, you can potentially save a lot of money during retirement by utilizing different healthcare services.
Use telemedicine for simple health concerns and prescription refills.
Seek Out Government Benefits
Again, depending on where you live, there are various government benefits for both seniors and retirees. This includes housing assistance, food assistance, transportation services, recreational activities, and more.
Tax Deductions
Talk to your financial advisor about tax deductions available to seniors. These deductions change based on age, and whether or not you and your spouse are both retired.
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DIY
During the working years, a lot of what you didn’t have time for was outsourced—at a cost. But now that you’re home all day, you have more time to do those jobs, saving you from hiring that contractor/maid/gardener.
Cut the costs of hiring someone else and do those things yourself.
Keep Tabs On Your Debt
Hopefully, by the time you retire, you are well versed in the debt department. But if not, managing your debt is imperative to ensuring you don’t run out of money in retirement.
You can save money on your already incurred debt in a few ways.
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Save On Your Debt
The interest payments are what makes paying off debt so difficult. To save money on your debt payments, consider consolidating your debt—this significantly reduces your interest payments.
Pay off your credit cards and smaller loans with a line of credit or a bank loan with a smaller interest rate.
You can also switch to different lenders that offer a cheaper interest rate. Always talk to a financial advisor first before making a switch.
Avoid Financial Gossip
Although it can be helpful to receive information from friends and family about financial responsibilities, it can also send you in the wrong direction.
Well-meaning friends can offer outdated advice, or advice that is not relevant to where you live. Always be aware of helpful advice when it comes to money.
Get A Financial Advisor
As with all financial advice, it is encouraged that you seek professional guidance through a financial advisor when organizing your money.
Financial advisors know all the tips and tricks to take advantage of different programs available to you.
Get A Roommate
Consider renting that extra bedroom or unused basement to someone else. Whether it be a quiet college student or a solo friend closer in age, having a roommate can help bring in a few extra bucks each month. Not only that, they can help around the house, too.
Buy In Bulk
Another good way that can help save money is to buy certain items in bulk. This can include anything from food and toiletries to bird seed and furnace filters. In many cases, buying items in bulk saves money in the long run.
Shop In The Middle Of The Week
Sometimes, shopping in the middle week can have sneaky advantages. Some places will offer lower prices during the week, or have coupons and discounts for specific days only. The middle of the week is also when you will find the most items on clearance.
Tweak The Thermostat
According to Energyrates.ca, you can save between 5% and 15% on your heating bill if you turn your thermostat down 10 to 15 degrees Celsius for one continuous eight-hour period, such as when you are cozy in bed at night. With a programmable thermostat, you can easily schedule this to happen automatically.
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Be Mindful Of Off-Peak Hours
Since most people in retirement are no longer actively working, being mindful of off-peak hours is a little easier. Off-peak hours are when power companies charge lower rates. This is usually during times of day when demand is lower, such as before 3pm and after 7pm.
Running your appliances during off-peak hours can really help lower your monthly energy bill.
Unplug Unused Appliances
Ever heard of energy vampires? They're the appliances and products in your home that suck power even when they're not in use. Retirees, who are typically empty-nesters at this point, often have a lot of things that simply just stay plugged in all the time.
Make a habit of unplugging your unused charging cables, your grandkids' game consoles, and your guest room TVs when they're not being used.
Consider Carpooling
If you can save on gas, you can save a decent amount of money right there. Gas is a growing expense in many American households, but thankfully there's a few ways to lessen the burden.
Consider carpooling with a neighbor, friend, or even your adult children next time you head to the farmer's market. It's not only easier on your wallet, it's also better for the environment—and your social life.
Shop Second Hand
Good news: Vintage style is back. Which means not only are thrift stores going to save you money, they'll also keep you in style! Clothing isn't the only thing you can save money on, though. Thrift stores are teeming with household goods, stationary, books, and even tools.
And that's not all thrift stores are good for.
Sell Your Used Items
Some thrift stores will buy your used items from you to sell in their store. Clothing consignment stores, baby and kids stores, pawn shops—surely there's a box or two of old things you can sell.
And some things might actually be worth more than you think.
Vintage Treasures
A lot of people have a basement or attic that has at least a stack or two of boxes or bins filled with old items passed down from generations that have become less and less interesting as they pass hands. But what you might not realize is that some of those items can be worth a pretty penny these days.
Vintage toys, old CDs, jewelry, collectors toys, old comic books, decorative vases and pottery, paintings and artwork—the possibilities are endless. Take a moment to see what vintage treasures you may be unknowingly storing.
Vacation For Less
Now that you're retired, your annual income has likely dropped quite a bit. Which means that your vacations are going to look a little different now. You can still enjoy a hot tropical beach, but you may have to choose a different time of year.
Choosing a different season can drastically change the cost of your tropical vacation. You can also choose a four-star resort instead of a five-star, or opt for a garden view room instead of an ocean-view.
Start by changing a few little things and see how much you can really save.
Utilize Your Local Library
The library is a hidden gem that a lot of people forget about. Not only can you borrow all kinds of books and media for free, but many public libraries now offer a variety of free programs and classes to attend as well. From crafting classes to computer classes, and performances and events, the library almost always has something going on—and usually for free.
Utilize Your Local Community Center
Much like libraries, community centers are another great place for retirees. Aside from free programs and classes, many community centers also have libraries, pools, and gymnasiums. And a lot of times, you'll find various summer events, concerts, and performances—that are also free to attend.
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Set Up Automated Savings
Out of sight, out of mind! Setting up automatic savings is the easiest and most effective way to save. Have your bank automatically take a small portion of your income each month and transfer it to a separate savings account. You can choose the amount and the interval.
Avoid ATMs
ATM machines are notorious for charging incredibly high fees. Each time you use an ATM it charges you $2 (this amount ranges depending on the bank and location). But then, if the ATM is not associated with your bank, your bank will then charge an additional $2 (or more). So, after withdrawing $20 from the ATM, you've spent a total of $24.
If you can't get to an actual branch to withdraw cash, try to find an ATM that is associated with your bank, at least.
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Volunteer At Places Of Interest
Many retirees find themselves getting bored, but nothing "free" seems to be of interest to them either. A solution to this problem is to offer to volunteer at a local event or festival—one that you may have actually wanted to attend but didn't want to pay for.
Your help will often get you a free ticket to the event, and you'll be able to enjoy it while you're there.
Final Thoughts
Saving money for retirement is tough, but saving money while already retired can be even tougher. But if you think smart and get creative, a few bucks here and there can make a big difference.
