10 Ways for Retirees To Cut Back on Expenses in 2024
As 2024 approaches, you might be considering new ways to save some money. That can be especially true if you are a retiree who is living on a fixed income with not a lot of wiggle room in your budget.
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GOBankingRates reached out to some financial experts to get their advice on the best ways for retirees to cut back expenses in 2024. If that’s you, make sure to take note of the following tips.
Master Digital Coupon Stacking
When it comes to the cost of groceries and buying essential items for your home, you’ll want to maximize the savings no matter what age you are. Best way to do that for retirees? Digital coupon stacking.
“Many grocery stores now offer digital coupons that can be easily loaded onto loyalty cards,” said John Browning, a seasoned financial advisor and founder of Guardian Rock Wealth. “By strategically combining these digital discounts with traditional paper coupons, I’ve managed to shave a significant chunk off my grocery bills. It’s a savvy way to leverage technology and old-school savings tactics for maximum benefit.”
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Reduce Entertainment Costs
It can be easy to sit down in front of the television and waste away your golden years on mindless entertainment. But why not temper that with some experiences that don’t take place in front of a screen? It will save you in the long run.
“Review your entertainment and subscription services,” advised Percy Grunwald, a personal finance expert and the co-founder of Compare Banks. “Cutting down on cable packages, magazines or streaming services with overlapping content can result in substantial savings.”
Grunwald suggests also to “look for senior discounts on entertainment options and take advantage of community events and programs that offer affordable or free activities.”
Leverage Senior Discounts
For this tip, Browning notes that it is important to think outside the box when it comes to the obvious senior discounts already available and well known to retirees.
“Beyond the standard senior discounts at restaurants and movie theaters, there’s a gold mine of lesser-known perks for retirees,” Browning said. “I’ve found substantial savings on auto insurance, home services and even travel accommodations by simply asking about senior discounts.”
Browning points out that companies are willing to provide exclusive deals, but you often have to be proactive in seeking them out. “It’s become a rewarding part of my financial strategy in retirement.”
Rethink Transportation
Many seniors are faced with a dilemma upon retiring: Not only is it time to step away from work, but it might be time to rethink how to get around town.
“Retirees can reduce transportation expenses by downsizing to one vehicle, especially if public transportation is accessible,” Grunwald pointed out. “Consider walking, biking or using rideshare services for shorter trips. Maintaining a fuel-efficient vehicle and comparing insurance rates periodically can also contribute to long-term savings.”
Re-Evaluate Housing Costs
If you bought a large home to house your family when you were younger but are now an empty nester with lots of space and too many bills to maintain it, you might want to think of different living arrangements for your retired years.
“Housing is often the most significant expense for retirees,” said Grunwald, who suggests downsizing to a smaller home or moving to a more affordable location. “Additionally, explore options like refinancing your mortgage or, if applicable, taking advantage of senior discounts on property taxes.”
Budget Properly for Healthcare
Going to the doctor should not be as pricey as it is. That’s why it is important to have a safety net in place, because you might find that the older you get, the more medical bills you will encounter.
“Healthcare costs can be a substantial burden for retirees,” Grunwald explained. “Evaluate your health insurance plan and explore alternatives that provide adequate coverage at a lower cost.”
Grunwald advises retirees to “take advantage of Medicare benefits and consider supplemental insurance policies to fill coverage gaps. Generic medications and mail-order pharmacies may also offer cost savings.”
Browning has a unique way that retirees can help cut down their medical expenses.
Participate in Clinical Trials
Healthcare savings can be offset when retirees agree to participate in clinical trials. Browning said it’s an “unconventional but impactful way” he has personally managed his healthcare costs in retirement.
“Many research institutions and pharmaceutical companies actively seek older participants for various studies,” Browning said. “Not only does this contribute to advancements in medical science, but it often provides access to cutting-edge treatments at little to no cost. It’s a unique avenue for healthcare savings while being part of something that can potentially benefit others.”
Cut Back on Trips
Just because you now have the time to go on vacation does not mean you necessarily have all the money to trot around the globe. Consider local and cheap ways to get out of the house.
“Retirees should look into free or low-cost activities such as going to the library, visiting local parks or taking day trips,” said Gary Hemming, an experienced financial expert and an owner at ABC Finance.
Optimize Credit Card Cash Back
“To help cut down on the costs of day-to-day spending, retirees should seriously consider cash-back credit cards,” advised Matt Miczulski, a personal finance expert and author with Finder.com.
Miczulski points to the example of the Chase Freedom Flex Credit Card, which “pays 5% cash back on rotating categories each quarter like gas stations and grocery stores.”
“Budget so you’re in control of your spending and use tools like cash-back credit cards to reduce the costs on common expenses,” Miczulski said.
Use Every Health Savings Advantage
The Kaiser Family Foundation reported this year that 89% of healthcare plans for retirees included prescription drug coverage, with 66% not charging any premium beyond the Part B premium, all due in large part to Medicare or Medicare Advantage.
If you can enroll for Medicare, utilize all the additional benefits like dental, vision and hearing care that is provided under your specific coverage. GoodRx, SingleCare or RxSaver are great programs to help you save on prescriptions.
If you are still in the workforce, use your health savings account (HSA) or a flexible spending account (FSA) to save and pay with pre-tax dollars for qualified medical expenses.
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This article originally appeared on GOBankingRates.com: 10 Ways for Retirees To Cut Back on Expenses in 2024
