6 Money-Saving Tips for Older Seniors

Some may think that older adults spend less after retirement since they have fewer financial responsibilities. However, whether splurging on vacations or paying heavily for unexpected medical expenses, retirement savings can vanish quickly. Planning, prioritizing needs vs. wants, and saving for rainy days will go a long way in retirement.

1. Find Banking Discounts

Banks and other financial institutions offer special programs seniors. Many banks offer higher interest rates on savings accounts, free checking accounts, lower interest loans, and low or reduced banking fees.

2. Save on Health Care Coverage

Medical healthcare coverage is crucial for the needs of seniors and can become very costly. According to a report from the Bureau of Labor Statistics, adults 65 or older spend about $4854 a year—about $400 a month—on health insurance. Care needs only rise with age, so having comprehensive health insurance is imperative to ensure you don’t end up having to pay exorbitant medical bills out of pocket.

3. Maintain a Healthy Lifestyle

It may sound cliche, but issues caused by poor lifestyle choices can become very expensive in the long run if left unchecked. While a gym membership and a clean diet may sound much more expensive than trans fats and frozen meals, they’re certainly cheaper than managing diabetes, obesity, and cardiac issues. Maintaining a healthy lifestyle may not only delay the onset of these diseases but will also help save money on managing them. There’s really no downside to staying healthy longer!

4. Shop Wisely

Seniors can save money on shopping by categorizing their needs vs. wants. It’s best to focus on buying absolute necessities and resist the urge to purchase luxury items. It’s good to splurge occasionally on things yet to be ticked off on your bucket list, just remember to do so wisely. Make use of senior discounts offered by retailers. Companies offer senior discounts for a wide variety of uses like dining at restaurants, seeing movies, grocery shopping, in salons, spas, retail stores, etc. Thrift stores are another option to get things at heavily discounted prices.

5. Reduce Travel Expenses

Retired seniors don’t usually drive as much as before retirement, but still want to own a car to retain their independence. A report from AAA suggests that the total cost of a new vehicle can be up to $9,282 annually. That may be too costly for someone who doesn’t travel every day. Instead, consider purchasing a used car or downsizing to only one car if you previously owned two. Save on gas by biking or walking to destinations with shorter distances, or order online. Driving less aggressively—not speeding, not braking hard, no rapid acceleration—will also save on gas. Many auto insurance companies offer a discount to seniors for taking a driver safety course; check your insurance company for details.

6. Save on Utility Bills

Seniors can check with their utility providers about discounts and tax rebates for their age and income levels. Other smart and easy ways to save on utility costs:

Turn off the lights after leaving the room
Change air filters regularly and maintain the unit as recommended
Use energy-efficient light bulbs
Use a programmable thermostat
Fix leaking faucets
Wash dishes/clothes with full loads before/after “peak” usage hours; typically, between 9pm to 5am (check your utility company for seasonal peak hours)
Seal air leaks around windows and doors
Avoid running the water while brushing teeth or doing dishes
Unplug your chargers, laptops, and other appliances after using

Retirement doesn't have to break the bank. With smart financial planning and spending, you can stretch those retirement funds.