10 costs you can eliminate in retirement

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Lower expenses

Many retirees are tempted to spend more money on leisure activities in retirement. Health care costs also tend to increase as people age. But there are many costs that decline in retirement – and a few you can eliminate entirely. Here are some expenses you will no longer have in retirement.

Mortgage

Paying off your mortgage eliminates one of your biggest monthly bills. While you will still have to pay for insurance and property taxes and continue to maintain your home, these costs are likely to be a fraction of what you were paying for your mortgage. There's also a big emotional payoff when you own your home mortgage-free.

Commuting costs

Gas for your car or train fare is a big expense for employees with long daily commutes to work. In retirement, all your driving is for personal errands or pleasure, and some retirees are able to completely avoid traffic by skipping outings during peak travel times.

A second car

Dual-income married couples often need two cars to get to their respective jobs. If you're willing to coordinate your respective schedules, you might be able to get by with one car in retirement. This will also reduce your insurance and car maintenance costs.

See the average retirement age in all 50 states:

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Average retirement age in every state
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10 costs you can eliminate in retirement

Alabama - Age 62

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Alaska - Age 65

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Arizona - Age 63

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Arkansas - Age 62

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California - Age 64

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Colorado - Age 64

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Delaware - Age 62

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Connecticut - Age 64

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Florida - Age 63

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Georgia - Age 62

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Hawaii - Age 63

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Idaho - Age 63

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Illinois - Age 63

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Indiana - Age 63

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Iowa - Age 64

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Kansas - Age 65

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Kentucky - Age 62

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Louisiana - Age 63

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Maine - Age 64

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Maryland - Age 64

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Massachusetts - Age 64

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Michigan - Age 62

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Minnesota - Age 63

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Mississippi - Age 63

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Missouri - Age 63

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Montana - Age 63

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Nebraska - Age 65

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Nevada - Age 63

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New Hampshire - Age 65

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New Jersey - Age 65

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New Mexico - Age 63

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New York - Age 64

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North Carolina - Age 63

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North Dakota - Age 63

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Ohio - Age 63

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Oklahoma - Age 63

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Oregon - Age 63

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Pennsylvania - Age 63

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Rhode Island - Age 64

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South Carolina - Age 62

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South Dakota - Age 63

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Tennessee - Age 63

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Texas - Age 64

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Utah - Age 65

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Vermont - Age 65

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Virginia - Age 63

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Washington - Age 64

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West Virginia - Age 62

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Wisconsin - Age 63

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Wyoming - Age 65

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Professional clothing

Some jobs require expensive professional attire, stylish haircuts and makeup and formal clothing for special events. Dry cleaning and professional tailoring cost even more. Retirees get to trade in their suits for jeans and don't have to keep up with the latest fashion trends unless they want to.

Time-saving costs

Time-strapped working people often spend money to save time. This might mean buying expensive convenience food because you don't have time to cook and outsourcing household chores so you don't have to spend your weekends doing them. Retirees can invest their time to save money by comparison shopping for good deals and taking on the home improvement chores they used to pay someone else to do.

Office costs

Being involved in office social life comes with some costs. You might pay for lunch out with coworkers, chip in for gifts for colleagues or get drawn into the office pool. These costs are often a necessary part of team building with coworkers, but retirees don't have to pay them.

Paying full price

One of the major benefits of growing older is qualifying for senior discounts. The senior discounts available for hotels and car rentals are well known. But you may also qualify for discounts on necessities such as groceries. Not all senior discounts are advertised. Sometimes you have to ask, and be prepared to show ID.

Peak travel costs

Many working people cram their travel plans into long weekends and national holidays, and parents tend to vacation during school breaks. Airlines and hotels know this and set prices accordingly. Retirees can travel during weekdays and off-peak seasons, when the prices are lower and the crowds are smaller.

Unnecessary fees

Take the time to review your investment portfolio, with the goal of reducing your investment costs. Make a note of the expense ratio of each fund, and challenge yourself to find a lower cost fund that meets your investment needs. You could be retired for several decades. Don't allow your investment returns to be dragged down by unnecessary costs.

A high tax rate

Many people drop into a lower tax bracket in retirement. Take steps to further reduce your taxes by carefully timing retirement account withdrawals. There are tax breaks specifically for people age 65 and older, including a bigger standard deduction. Some jurisdictions also have property tax breaks for older homeowners.

RELATED: See the best places in the world to retire:

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Best places in the world to retire
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10 costs you can eliminate in retirement
AUCKLAND, NEW ZEALAND - MAY 27: The Auckland CBD city skyline including the Sky Tower and to the right Devonport, as seen from North head on the North Shore, Auckland New Zealand, Wednesday, May 26 2004. (Photo by Michael Bradley/Getty Images)
Dark clouds hang over a harvested corn field near Biebelried, southern Germany, on August 4, 2014. AFP PHOTO / DPA / KARL-JOSEF HILDENBRAND / GERMANY OUT (Photo credit should read KARL-JOSEF HILDENBRAND/AFP/Getty Images)
 A picture taken on June 26, 2014 shows the landscape and Dolomite mountains near Bolzano, Italy, home and playground to a large number of brown bears. Brown bears were reintroduced in parts of western Europe in 'rewilding' programs, in the east they never died out. They have wandered far and wide and have created antagonism with attacks on livestock. AFP PHOTO/JOE KLAMAR (Photo credit should read JOE KLAMAR/AFP/Getty Images)
A charming little hostel in Stocken on the west coast of Sweden.
Old windmills, meadows and water in Holland
A man meditating in front of Kirkjufellfoss waterfalls, Kirkjufell, Iceland
SYDNEY, AUSTRALIA - DECEMBER 30: Waiting for the new year fireworks, Australians set their tents up at Sydney harbour, December 30 , 2013. (Photo by Recep Sakar/Anadolu Agency/Getty Images)
A Northern light (Aurora borelias) is seen near Tromsoe, Northern Norway on October 21, 2014. AFP PHOTO / NTB scanpix/ JAN MORTEN BJOERNBAKK NORWAY OUT (Photo credit should read JAN MORTEN BJOERNBAKK/AFP/Getty Images)
ST MORITZ, GRISONS, SWITZERLAND - 2015/01/24: Town centre of the ski resort in Winter. (Photo by Olaf Protze/LightRocket via Getty Images)
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