Cutting Expenses in Retirement: 5 Ways To Save on Transportation Costs
According to RetireGuide, the average retiree spends 12% of their monthly budget on transportation. It’s a big chunk of change — but getting around is nonnegotiable. Those who can’t afford to get from point A to point B risk missing important medical appointments, struggle with buying groceries and run the risk of falling into isolation.
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The good news is that most retirees can take steps to lower their transportation costs. Here are some of the best ways to save.
Choose Public Transportation Over a Car
The cost of buying, leasing or financing a car has skyrocketed in the past few years. That, combined with high ownership costs, makes public transportation the cheaper option in nearly all cases. If you live in a town with reliable public transit, ditch the car.
According to the American Public Transportation Association’s Transit Savings Report, riding instead of driving can save an average of $13,000 annually, or $1,100 a month.
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For Retirees, Daily Life Is Always on Sale — Search for Senior Discounts
One of the good things about getting older is that seniors get reduced prices on everything from movie tickets to hamburgers to passes for the zoo — and transportation is no different.
“Many retirees may not be aware of the various discount programs available for public transportation,” said David L. Blain, CFA, founder and CEO of BlueSky Wealth Advisors, a fee-only, independent registered investment advisor.
For example, Amtrak gives riders 65 and up a discount of 10% on most rail fares.
AARP lists more than 40 discounts related to travel and transportation, including railways, airlines and rental cars.
But for day-to-day coming and going, you’ll have to home in on resources closer to home.
“Municipalities offer substantial fare reductions for seniors,” Blain said.
Your Town Probably Offers Programs — but Try a Subscription Service If Not
As Blain stated, your town’s resources are usually the best place to start looking for cost-saving programs. Your local senior center should be your first stop.
“Senior-specific transportation programs are prevalent in many cities and towns across the country,” said Mike O’Neill, CEO and founder of Backspace Travel. “These services, often run either through local councils or charitable organizations, provide discounted access to buses, shuttles and door-to-door transport for older residents. Fares are typically lowered by 20% to 40% compared to standard prices through these offerings. They also aim to connect seniors to important destinations like hospitals, grocery stores and community centers by pairing flexibility with affordability.”
If not, look into third-party subscription services.
Many programs operate on a membership basis for an annual fee of $10 to $30, after which every trip yields substantial cost savings.
GoGo Grandparent, for example, starts at $10.39 a month for basic services like rides, meal delivery and prescription pickup. A similar service, Arrive, costs $10 per month.
“While programs can vary locally, qualifying seniors ages 65 and up are encouraged to inquire through their area council on aging department to discover if such opportunities exist,” O’Neill said.
Here are some other resources:
Google Maps has a tool for locating volunteer transportation providers near you.
Call 211 for transportation assistance.
Call the Eldercare Locator through the U.S. Administration on Aging at 800-677-1116.
Travel Off Peak Whenever Possible
If you do use public transportation, schedule your trip during slow times whenever possible. Rush hour is expensive.
“Retirees might consider scheduling trips outside of peak hours, taking advantage of off-peak discounts many transportation services offer,” said Marty Burbank, an elder law and estate planning attorney and the founder of OC Elder Law.
O’Neill concurs. “Most airlines, trains and bus services charge higher fares on weekends, especially Fridays and Sundays, as well as holidays and the summer travel season,” he said.
Ride-Hailing and Carpooling Can Be Economical
Familiar ride-hailing apps can also come in handy.
“Consider the benefits of ride-sharing or carpool services, which, when used judiciously, can lessen the need for personal vehicle maintenance, fuel and insurance costs,” Blain said.
Both Uber and Lyft have senior-specific programs. Uber lets family members schedule rides for seniors who don’t have smartphones or who are unfamiliar with the app. Lyft partners with nine of the 10 largest health systems to provide rides to nonemergency medical appointments, and Uber offers a similar service.
If you do have a car and don’t have access to public transportation, take Blain’s advice and join a carpooling club or service to mitigate the high cost of driving.
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This article originally appeared on GOBankingRates.com: Cutting Expenses in Retirement: 5 Ways To Save on Transportation Costs
