I’m on a $6,500 Monthly Retirement Budget: 5 Grocery Items I Can No Longer Afford
The U.S. Bureau of Labor Statistics’ most recent data found that the average expenses for seniors were $52,141 a year ($4,345 a month). An estimated $6,490 — $541 a month — was dedicated to their grocery budget.
Not all retirees earn that much monthly, while some bring in a little more. George Yang, a 60-year-old retiree, said his monthly retirement budget is approximately $6,500. His income comes from three sources: investment returns, pension and retirement accounts (including an IRA and a 401(k)).
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While this is a bit higher than the average, certain everyday grocery items are still out of his price range. This doesn’t mean he never splurges on these goods, but it does mean some strategic shopping and cutbacks are necessary.
Here are the top grocery items — and foods in general — that Yang said he generally skips or looks for cheaper alternatives.
Organic Fruits and Vegetables
It’s no secret that organic produce tends to be more expensive than non-organic. It tends to be more expensive and has a relatively limited supply compared to non-organic options. Because of this higher price, many retirees — including Yang — tend to skip the organic section of the grocery store.
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“As a retiree, I need to manage expenses for financial stability,” Yang said. “I choose conventional over organic to save money. Organic is pricier, so I buy it only when essential.”
Of course, not everything organic is automatically more expensive. According to the Maine Organic Farmers and Gardeners Association, some items can be cheaper, though they might not all be fruits and vegetables. Organic brown rice, for example, costs around 10% less than its counterpart. On the other hand, a head of lettuce (organic) costs about 18% more. Other organic options can be up to 134% more expensive, particularly in the meat section.
Certain High-End Meats
The cost of meat can be quite high, depending on the cut. For those on a budget, it’s generally a good idea to be strategic with the meats in the shopping cart. After all, why spend a few extra dollars on a cut of meat when you could have gotten something a bit cheaper that’s still good quality?
“Premium meats like filet mignon are now rare treats,” Yang said. “I stick to affordable options like chicken, pork and ground beef.”
A pound of filet mignon angus beef at Harris Teeter costs about $27. A pound of ground beef goes for about $5 at Target.
Name-Brand Household Items
The grocery store isn’t just a place for food. Some stores, like Walmart, have aisles dedicated to non-food items — like household cleaners and paper products. But the name-brand option is sometimes too expensive.
“I avoid expensive cleaning products, branded paper goods, and costly toiletries,” Yang said. “Instead, I opt for generic or store brands.”
The Dinner Daily found that generic goods at the store can cost anywhere from 25% to 30% less than their name-brand counterpart. And this isn’t only true of food. Nonedible items also tend to be cheaper on a per-unit basis.
Twelve mega-rolls of Charmin toilet paper costs $14.99 at Target. The same number of rolls at Walmart costs about $10 when you buy generic.
Specialty Foods
Depending on where you shop, you can end up spending — or saving — a lot on groceries. But even if you’re not frequenting places like Wegmans or Whole Foods, even just avoiding specialty items can be a cost-effective measure.
Now that he’s retired, Yang said he rarely buys specialty foods like he did before.
“Gourmet cheeses, exotic fruits, and specialty health foods are no longer staples. I buy these only for special occasions,” he said.
For example, gourmet cheeses can easily cost $15 to $20 at the store. Some go for much more than that. For retirees sticking to a budget, opting for the cheeses that cost under $10 is generally better.
Premade Meals and Dining Out
Premade meals are almost always more expensive than just buying the individual ingredients. The exception, sometimes, is when it comes to frozen meals — especially the family-sized ones from generic or store brands. When every dollar counts, the best option tends to be getting those individual ingredients rather than fully-made meals.
Along with that, Yang noted that he rarely goes out to eat anymore — except on special occasions. He especially avoids eating at high-end restaurants, preferring to prep and cook his own meals at home instead.
This isn’t unusual either. Not only is the base price of restaurant meals generally higher than just purchasing the ingredients at the store, but you also have to think about added costs like tips, delivery fees, and service fees. Some restaurants or delivery apps also have purchase minimums, which can result in spending even more than intended.
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