15 Ways Retirees Can Stretch Their Savings for 30 Years

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One scary part of retirement is knowing you could have 30 more years in front of you but only a limited amount of cash available to finance them. How can you make sure your retirement account doesn’t run dry before saying your final goodbye?

Following are numerous smart strategies you can use to stretch your money — however little or much you have — over the decades to come.

1. Budget, budget, budget

A senior couple reviews their finances on a laptop computer
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Ugh. This is no fun, right?

You may not want to spend your free time working on a budget, but there is no better way to make your money last than to be intentional about its use. Without a spending plan, you could find yourself running through your cash in no time.

The good news is that the digital age has made it easier than ever to keep track of your money. One of our favorite tools for doing this is a program called YNAB (You Need A Budget), which helps you track spending and create and live within a budget.

2. Embrace senior discounts

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Senior discounts are one of the best parts of getting older. Once you hit a certain age — often 55 or 60 — you can start getting discounted meals, travel, tickets and more. Use these reduced prices to make money last longer in retirement.

To get started, check out:

3. Move to a smaller house

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Once the kids are gone, you might not need so much space. Consider downsizing to a smaller home. You could find maintenance, utilities and tax bills all getting smaller as well.

Alternatively, to defray the costs of a large home, consider renting out extra space to visitors through an online marketplace such as Airbnb.

4. Relocate to a less-expensive area

Retiree at a beach party
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Moving to new states — or even countries — can cut costs.

Some states, such as Florida, are known for being tax-friendly. Others, such as Midwestern states, are known for their low cost of living. Either way, such locations help you stretch your money in retirement.

Some retirees leave the U.S. completely. They opt for places like Mexico or Panama, where even small retirement savings can translate into a comfortable life thanks to a lower cost of living or a favorable exchange rate.

5. Sell what you don’t need

Woman at a yard sale
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Add to your retirement war chest by selling the items you no longer use. Maybe camping days are done, or you decide woodworking is a hobby that will never take off. And all those Disney movies? Probably not essential in this phase of your life. Keep a couple for when the grandkids visit and make some money off the rest.

Garage sales, Craigslist classifieds and sites like Decluttr (which buys your old tech tools and devices) are all places to sell your excess for cash. For more ideas, read “6 Websites That Will Sell Your Clutter for You.”

6. Get the things you do need for cheap

A senior woman gives a thumbs-up in front of a sale sign
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When you do need to buy things, you’ve got the advantage of having more free time to search for a deal. Scour garage sales, classified ads and secondhand stores for steals on what you want.

If you’d rather buy new, see “15 Golden Rules for Saving on Every Purchase.”

7. Become a one-car household

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Speaking of things you no longer need, is it really essential to have two cars after you retire?

Sure, it’s nice to have the freedom to go to one place while your spouse goes to another. But is the convenience worth the extra car payment, insurance, maintenance and registration fees?

Your money will stretch further in retirement if you’re not using it on a vehicle you drive only occasionally.

8. Refinance or consolidate your debts

"Say no to debt" is written in a notebook
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In a perfect world, you’d have debts paid off before retirement. However, we don’t live in a perfect world. We live in the real world.

If you have debt, you can save money by lowering your interest rates. For example, you may be able to move balances from high-interest credit cards to one with a low introductory rate. So, consider looking into 0% APR credit cards.

9. Travel wisely

Group of seniors at the beach.
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When you don’t have to plan vacations around work or school schedules, a whole world of travel savings opens for you. Travel in the off-season to get great deals and avoid the crowds. Or be spontaneous and go wherever the latest deals take you.

10. Manage your sequence of returns risk

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Sequence of returns risk, also known as sequence risk, essentially means that if the stock market tanks when you start taking withdrawals from retirement accounts, your balance may never fully rebound even if the market does.

In other words, you want to avoid having to withdraw money from your accounts when the market is down. There are several ways to do this, such as keeping enough money in a cash account to ride out a bear market or investing conservatively to minimize losses in a crash.

Since this can be a complex topic, working with a financial professional to structure withdrawals is always a good idea. Wealthramp is a free service that can connect you with fee-only fiduciary financial advisors in your area.

11. Stay active

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Medical expenses can be a major drain on a retiree’s finances. However, you may be able to minimize your expenses by staying active for as long as possible.

Physical activity is key to preventing and managing chronic diseases and lowers your risk of developing dementia, according to the U.S. Department of Health and Human Services.

To learn more about the benefits of physical activity, see “7 Surprising Benefits of Staying Fit in Retirement.”

12. Understand your health care benefits

Senior health care
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When you need health care, understand the benefits and caveats provided by your plan. For most seniors 65 and older, that plan is Medicare, the national health insurance program for seniors

For instance, if you’ve signed up for a Medicare Advantage plan, one of the two main types of Medicare, you may have to go to in-network providers and pharmacies or else pay more. If you opt instead for the other type, known as Original Medicare, and you travel internationally, your care at a foreign hospital may not be covered.

In addition to knowing your coverage costs, you should know how it can save you cash. There are many health care services that you get free with Medicare, so use them to the fullest.

13. Get ready for long-term care costs

Home health care worker
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In addition to regular health care expenses, you may have to pay for long-term care. This type of care doesn’t come cheap, and it is not covered by Medicare except in very limited situations and for short periods.

Without a plan for how to pay for long-term care costs, you could find retirement money gone in a flash.

If you’re young enough, you could buy long-term care insurance. Otherwise, consider whether you could use a reverse mortgage, a long-term care annuity or living benefits from a life insurance policy to preserve assets.

14. Set boundaries with the kids

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Moms and dads, this has got to stop. If you want your money to last through retirement, you’ve got to stop giving it to kids who are old enough to support themselves.

Set clear boundaries on when and how much you expect to spend on grown kids and then stick to your guns. For pointers, check out “6 Ways to Help Adult Children Without Going Broke.”

15. Work longer

Woman Senior Work
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If you’re hitting your golden years with little savings in the bank, the best way to stretch those dollars is to avoid using them at all. Working full time or even part time not only pads your bank account but also may let you delay claiming Social Security benefits.

For every year between your full retirement age and age 70 that you delay receiving monthly Social Security benefits, you get a boost of up to 8% in your monthly payment.

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