Cutting Expenses in Retirement: 5 Grocery and Dining Costs To Eliminate
In 2023, the New York Times reported on an epidemic of food insecurity among seniors who were cutting back on meals, visiting food pantries for the first time and eliminating all but the cheapest and most basic ingredients from their ever-shrinking diets.
Food costs and general cost of living — both at restaurants and the grocery store — had risen so much that many retirees couldn’t keep up, especially since housing, transportation and the overall cost of living were also ticking up.
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Retirees who might be living comfortably now should make some adjustments when shopping for food and dining out to avoid the same fate.
Here are some costs they should eliminate now at supermarkets and restaurants to avoid a food crisis later in life.
Buy Whole Foods and Never Pay for Prep
The grocery store can make your life easier by sending you home with food that’s cleaned, cut, prepped and ready to cook — but it will cost you.
“Focus on purchasing whole foods, which tend to be cheaper and healthier,” said David L. Blain, chartered financial analyst (CFA), founder and CEO of BlueSky Wealth Advisors, a fee-only independent registered investment advisor that serves many retirees. “For instance, buying a whole chicken is more economical and offers various meal options compared to purchasing pre-cooked or pre-cut pieces.”
For example, the USDA says the average price for a whole chicken is $1.33 per pound, but pre-cut chicken breasts cost an average of $3.07 per pound.
Then there’s produce — why should you peel, slice and chop when just about every grocery store offers pre-cut, pre-packaged, ready-to-eat versions of your favorite fruits and veggies?
Look at the price tag before you answer.
According to Mashed, red onions cost $0.49 per pound, but if they’re pre-diced, the cost soars to $4 per pound. A whole butternut squash costs $1.29 per pound — or $4.80 per pound pre-cut. A head of romaine lettuce is $1.99 — or $3.99 for a prepared bag.
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Shop and Cook According to a Meal Plan
The most effective way to spend less at the grocery store and waste less at home is to plan meals ahead of time, purchase only the necessary ingredients, cook your week’s meals in bulk and freeze the excess in single-serve containers.
“One critical strategy for retirees to cut dining and grocery expenses revolves around embracing meal planning,” said Marty Burbank, an estate planning and elder law attorney, retirement advisor and founder of OC Elder Law in Orange County, California. “By planning meals weekly, one can buy only what is necessary, reducing waste and avoiding impulse purchases.”
According to the University of Wisconsin-Whitewater, shopping and cooking according to a meal plan saves an average of $1,600 per year, while adding variety to your menu, letting you use what you have before it goes bad, saving time and making your household run more efficiently.
Buy Meat Rarely, Deliberately and Creatively — and Fall in Love With Beans
Retirees looking to cut costs should cut down on meat.
“Meat is expensive,” said Clay Cary, trends analyst at CouponFollow. “If you’re living on a budget, consider limiting meat to two to three times a week and using your freezer to cut any waste.”
Clay offered the following hack as an example of how to get creative with cost-effective grocery shopping in the meat aisle.
“The cheapest way to stock up on meat is getting a pre-cooked rotisserie chicken toward the end of the day,” he said. “They’re often reduced by up to 50% as the store starts to worry that they’ll have to throw them out. When you get home, strip it and freeze the cut-up meat in serving-size bags to add to your meals throughout the week. Now you’ve got a cheap supply to add to things like sandwiches or salads throughout the week.”
On the days between, beans — particularly dry beans bought in bulk — are one of the most economical, versatile and least perishable sources of clean, healthy protein in the entire supermarket. According to the University of Nebraska-Lincoln, they cost about 17 cents per serving.
When It Comes To Dining Out, Treat Average as Exorbitant
According to the most recent Bureau of Labor Statistics data, the average American household spends $3,639 per year on dining out. That’s more than $300 per month or about $70 per week.
Considering post-pandemic price realities, the average is now excessive.
Restaurant inflation remains one of the most persistently stubborn sources of rising prices in the entire economy. If you’re not eating out less, you’re spending more — and retirees should choose the former.
“If you’re on a fixed retirement income, cutting back on dining out can help you stretch your budget further,” said Ann Martin, director of operations of CreditDonkey. “Reserving restaurant meals for special occasions, for example, is an easy way to limit this expense.”
When You Eat Out, Skip the Extras
Carter Seuthe, CEO of Credit Summit Debt Consolidation, has seen retirees get into financial trouble by continuing to splurge on what he calls the “extras” that they learned to enjoy during their working years when they had the income to cover them.
“This could include anything from paying for valet parking at the restaurant to ordering an alcoholic beverage with your meal to ordering dessert afterward to going over-the-top with the tip,” he said.
According to Dextrous Parking Management, valet parking averages $10 to $25 an hour. Binwise bar management software platform says the average adult beverage costs between $5 and $15 — and desserts can cost as much as appetizers, which retirees should also add to the list of banned extras.
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