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THE MORNING CALL SUNDAY, JANUARY 24, 2021 19
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Ways to cut costs

during retirement

he average person will spend more than
50 years in the employment sector. As
Tretirement draws closer, many professionals
begin to daydream about giving up the commute and

having more time to pursue their personal interests.
Even if planning for retirement has been many
years in the making, it can take some time for a

person to become acclimated to having less income.
According to data from the Bureau of Labor Statistics,
“older households,” which are defined as those run
by someone age 65 and older, spent an average of
$45,756 in 2016, or roughly $3,800 a month. That’s

roughly $1,000 less than the monthly average spent by
typical American households. Housing, transportation, • Pare down on possessions.Take inventory of what you
health care, and food are some of the biggest bills have and scale back where possible. If you are no longer

retirees will have to account for.Aiming to have commuting to work, you may be able to become a
one-car household. Downsizing your residence can help
savings in addition to any other retirement income or seniors avoid spending too much of their retirement
government subsidy coming in to cover that amount is time and money maintaining their homes.
a step in the right direction.
Retirees can make their money go further if they • Take advantage of senior discounts.Take advantage of

take inventory of their spending and make some cuts the many discounts that are offered to seniors. Retirees
can usually save on restaurants, travel, groceries, and
where possible. much more by simply shopping on specific days or

• Know where your money is going. It’s impossible verifying their age when checking out.
to save without knowing what your expenses are • Purchase less expensive life insurance.According
each month. Many people are surprised to learn how Cheapism, a site that advises consumers about how to
much little things add up over the course of a month. be more frugal, the chief purpose of life insurance is
For example, spending $4 for a take-out coffee each to replace income to ensure the financial security of
day can quickly become an expensive luxury. Add all dependents in the event of death. Retirees may have
expenses and see where you can trim, especially if no dependents and little income.Therefore, a large
there’s a deficit each month. life insurance policy may not be necessary, especially if

• Consider extra health care. In the United States, you’ve already set aside funds to cover funeral costs.
Medicare participants can choose Medicare • Pay off a mortgage. Housing is many people’s most
Supplement Insurance plans to help reduce out- substantial expense. Paying off a mortgage can free up
of-pocket health care costs. Medicare Parts A more money each month and allow retirees to spend
and B only cover some of your health care costs. their golden years doing as they please.
Supplemental insurance can cover some of the costs
not covered by original medicare, like copayments, As retirement nears, adults can employ various strategies
deductibles and coinsurance, according to AARP. to reduce their monthly expenses.