Living on a fixed income takes planning. For retirees over 70, income often comes from a mix of sources and every dollar has to work harder than it used to.
The smart move is to start trimming now, before 70 hits. That gives you time to test what works and build new habits gradually. No need to slash everything at once. Just start here.
1. Subscriptions You Forgot You Have
Streaming services. News apps. Fitness platforms. Meal kits. It all adds up quietly. According to CNET, the average American adult spends nearly $1,100 a year on subscriptions. About $200 of that goes to services they never even use.
Pull out your bank and credit card statements from the last few months. If you can’t remember using something in the past two to three months, cancel it. Simple as that.
2. A Home That Costs More Than You Need
Housing is the biggest line item in most budgets. According to Harvard’s Joint Center for Housing Studies, roughly 43.5 million American households spend more than 30 percent of their income on housing. That’s a lot of people stretched thin.
If your home is larger than your life requires right now, downsizing could free up real money. It’s worth exploring what a smaller place might do for your budget.
3. Gift Giving That Goes Overboard
There’s nothing wrong with being generous. But overspending on gifts — or quietly subsidizing adult children’s finances; can put a real strain on a retiree’s budget.
If you’ve been helping out financially, it’s worth having an honest conversation with family about what you can realistically continue. Setting an annual gift budget and talking through expectations now protects both your wallet and your relationships. You don’t have to stop being generous. Just do it with your own financial needs in mind.
4. Insurance Coverage That No Longer Fits
Your insurance needs at 68 are not the same as they were at 45. Some coverage you’ve been carrying for years may no longer make sense. Other policies might just need a tune-up.
For example, if you’re driving less than you used to, let your auto insurer know. That alone can lower your rate. It’s also worth bundling policies where you can, comparing rates, and reviewing your deductibles every year. Small adjustments can add up to real savings.
5. Phone and Cable Bills
Telecom costs have a way of creeping higher without you noticing. If you’re still on a big-name carrier contract, no-contract cell phone plans are worth a serious look. They often offer the same coverage for much less.
On the TV side, swapping cable for a couple of streaming services — even non-premium ones — can cut your monthly costs noticeably.
Start Small, Save Big
Most of these cuts involve recurring costs that don’t really add to your daily enjoyment. Pick one or two to tackle right now. Live without them for a month. If you don’t miss them, put those savings to work somewhere else.
You don’t have to overhaul everything at once. Even a few smart trims can stretch your retirement budget further than you might expect.