10 Thrifty Tips for Inexpensive Retirement Living
Happy Retirement! Perhaps you’ve saved up for this moment. Are you eligible to collect Social Security? Did you know that the average Social Security benefit is $1,657 per month? Maybe you have a meticulously planned-out portfolio chock-full of investments. Whatever your circumstances, the fact remains that you’re no longer working, and a little thriftiness can go a long way. A stress-free retirement can be even easier to attain if you follow these 10 tips for inexpensive living!
1. Downsize to create liquid assets or pay off debt.
Downsizing in itself already has plenty of allure. A smaller home can mean less maintenance. And, less maintenance means more time for you.
But, what else is great about downsizing? It’s simple. Selling your home and buying one that’s less expensive can put cash in your pocket. That money can then be used for investing to generate additional retirement cash flow. Alternatively, money from the sale could be used to pay off debt.
2. Cash in on senior discounts.
Go on, admit it. You had been counting down the days ’til you could clinch that early bird dining deal. But, did you know you can get a senior discount from any one of a number of restaurants? Discounts usually range anywhere from 10 to 20% off. Some places even offer a specialized menu for seniors. Few grocery and retail stores offer senior discounts as well (you just have to ask). Other companies give seniors special deals, too. You can find discounts at hotels, cell phone providers, rental car facilities, and even subscription services like Amazon Prime. Businesses like AARP can also provide prescription and health savings to seniors. Many states offer additional senior discount programs through their Department of Aging.
3. Buy an annuity for guaranteed income.
If you’re feeling concerned about outliving your savings, then an annuity might be the perfect solution. Fundamentally, an annuity is a contract where an individual agrees to pay a provider a sum of money. The provider then invests that money, and in turn, promises a payout to the individual over a period of time (often until the individual passes on). The idea is that this type of investment will stretch your savings. You’re basically hoping the payout surpasses the original amount invested. This can be a great strategy for some, but not for others. It’s important to consult with an expert or financial advisor before making any decisions. Bob Carlson’s Retirement Watch is a good place to start learning about annuities!
4. Declutter your home.
Whether you’re aging in place or moving to a retirement community, you could probably stand to get rid of some things. Decluttering your home can be an easy beginning to thrifty living!
How?
First, decide what possessions you can part ways with. You’ve lived a long, eventful life, and chances are, you have a lot that’s accumulated over time. Of course, save anything of sentimental value – but, a little purging of unnecessary belongings can lead to less clutter, less cleaning, and more relaxation!
Next, determine which items to donate. If there’s nothing wrong with it, the object doesn’t hold a large monetary value and could benefit someone else, then donate. Charitable donations to qualified organizations can be tax-deductible too.
Next, determine which items can be sold. This is easy – do you have a car you don’t need or a closet full of lightly used designer handbags? Sell the stuff, get the cash, then use your earnings to invest, pay off debt, or simply keep a little extra money on hand.
Finally, determine which items are just garbage. Don’t waste your time on anything you don’t want and others don’t need.
5. Consider home sharing.
Shared housing is when two or more people share a living space for mutual benefit. Need help cooking and cleaning? Not comfortable driving anymore? Or, could you use a little help paying the utilities? These are all reasons more and more seniors are choosing to home share!
6. Do the math.
Compare prices per unit before buying! This is a must, especially during times when inflation is…well...getting a bit inflated. Think in terms of shelf-life versus quantity. If you’re buying something that doesn’t go bad for quite some time (like sugar, flour, coffee pods, etc.), then buying in bulk will pay off. When purchasing from big box stores (like BJ’s or Sam’s Club) or if you’re just picking up a value pack of something, you generally pay less per unit.
7. Dine in.
Did we already mention inflation? Well, restaurants are feeling it too. So, consider this: not only are they already paying more for their ingredients, but store owners also have to pay employees to cook and serve the food. What does that cost you, the patron? A lot! Stay home. Dine-in. Save a couple of bucks.
8. Watch your water.
You use a tremendous amount of water over the course of a month, and you have to. Metered water is not as cheap as it used to be, though, and when you are trying to cut costs, every penny counts.
One idea is to put a sealed container, such as a jar or plastic container, in the tank of your toilet. This will automatically raise the water level, and so it will take less water to refill the tank. Fill up your dishwasher entirely before you run it. Make laundry day count and wash as much as you can in one load. Then, of course, there’s the traditional advice: don’t run the water when you’re not using it.
9. Consider some energy-efficient home modifications.
This is an investment that will pay off in the long run. Seal up drafty areas of your home, and switch to LED lightbulbs. Install energy-efficient windows and doors. These small changes will add up in saved utility bills.
10. Trade landlines for cell phones and Wi-Fi.
If you’re paying a fortune for cable, telephone, and Internet, you may want to consider sticking to Wi-Fi service and a monthly data plan. Purchase a monthly streaming service, like Netflix, Hulu, or YouTube TV, instead. Smart TVs usually include their own streaming services, which work just as well as cable. Simplifying your technology this way can save you a considerable amount of money, especially if you only watch one or two channels. And, come on, who actually answers their house phone anymore, anyway?
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Originally published May 23, 2025
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