Retirement Retired Life

9 Overlooked Cost-Cutting Strategies All Retirees Should Give a Try

Working with a fixed budget can be scary, but there are many ways to cut expenses and save more money during your golden years.

By Jenny Cohen

Edited by Amanda Machado

Updated May 13, 2025

Many retirees constantly worry about how much money they are spending. After all, once you retire, you can no longer count on a paycheck arriving every week.

However, there are lots of strategies to save money that are overlooked. You might be missing out on new ways to avoid overspending.

If you're retired or planning to retire soon, here are some simple yet underrated ways to cut costs and save money on a daily basis.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!¹ See website for details.

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

Cook at home

Now that you are not working, you can afford to spend some real time in the kitchen. Look up recipes you wanted to try but didn't have time to prepare when you were still working.

Once you choose some meals, head to the supermarket and look for store-brand products that can help you save money on groceries.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Enjoy free activities

As a retiree, you have plenty of time on your hands. Don't fill that time with expensive activities.

Instead, think about leisurely fun that costs little or no money. Consider free outdoor activities such as walking or biking that require a little bit of money for equipment or clothes, but are not costly once you get past the initial outlay.

Also, look into events such as free lectures at your local library or community college.

When you enjoy free activities, you save money that you can use to pay down your debts or to add to your savings.

Spend more time comparison shopping

It's fine to occasionally spend some money on big-ticket items such as electronics or clothing. But before you do, dig in and do some comparison shopping to find the best deals.

Sign up for newsletters from your favorite companies so you learn about the latest deals. Also, check online for coupons that help you save extra cash when you go to the grocery store or your favorite retailer.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

How to become a member today:

Go here, select your free gift, and click “Join Today”
Create your account (important!) by answering a few simple questions
Start enjoying your discounts and perks!

You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $15 the first year with auto-renewal.

Become an AARP member now

Enjoy happy hour prices

Wouldn't it be nice to enjoy the bargain prices at your local restaurant or bar during happy hour? You can do that now that you're retired.

You can be savvier if you pick the best cash-back credit card and get some money back when you spend at restaurants.

Also, try new places during happy hour to see if you like the fare and the atmosphere. Testing a restaurant in this way is a lot cheaper than buying a full meal without knowing if you will even like the place.

Use free services when you can

Local libraries have access to many different kinds of materials, from books to DVDs and more. And they are all sure to keep you entertained without you having to spend a dime on them.

Also, check out nearby museums, which may have free days that you weren't able to take advantage of when you were working.

Drive less

Ditching your daily commute can save you a lot of money. You may drive less overall in retirement, which saves you cash on gas and likely reduces the amount you will need to spend on maintaining your car.

If you and your spouse are retired and live in a two-car household, consider getting rid of one of your cars. You'll be able to save on car insurance, and on registration and maintenance costs too.

Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why

Relocate and downsize

Do you currently live in a larger home that's close to your old office? Now, you have the freedom to consider living somewhere else.

Reconsider how much space you need, especially if you don't have to worry about having a home office and your nest is empty.

In addition to downsizing, consider moving to areas with a lower cost of living.

Create a budget

Creating and adhering to a budget is a great way to save money on a daily basis. Look at your current monthly spending and see if there are places you can cut costs.

Even if you aren't retired yet, it's a good idea to build a retirement budget now. Factor in everyday costs such as groceries or utilities, and remember to adjust your costs for inflation based on when you plan to retire.

After doing this exercise, you might even find you can retire sooner than you expected.

Take advantage of senior discounts

Ask about senior discounts at restaurants, movie theaters, hotels, and more. These offer great opportunities to keep a little extra cash in your pocket.

Consider joining organizations such as AARP or AAA, which may get you additional discounts for a small yearly membership fee.

In 2023 Americans lost over $10 billion to identity theft and fraud

That's right. According to the FTC, Americans lost over $10 Billion to fraud and identity theft in 2023.

But you can safeguard your data with all-in-one identity theft protection services from Aura which comes with $1,000,000.00 in identity theft insurance² Identity Theft Insurance underwritten by insurance company subsidiaries or affiliates of American International Group‚ Inc. The description herein is a summary and intended for informational purposes only and does not include all terms‚ conditions and exclusions of the policies described. Please refer to the actual policies for terms‚ conditions‚ and exclusions of coverage. Coverage may not be available in all jurisdictions. per adult, to cover you should you have eligible identity theft-related losses.

An individual plan starts at $9 per month, and you can choose a family plan that outmatches most others - includes Dark Web monitoring to scour data breaches and leaks for your sensitive personal data — such as Social Security numbers (SSN), Medicare information, and phone numbers.

Before you make your next online purchase, protect what you’ve built for a fraction of what it could cost you if your data were compromised.

Save up to 68% when you sign up for protection today!

Bottom line

There are plenty of ways to save money when you're on a fixed income. So, spend some extra time looking over your budget to see where you can cut costs and save more cash.

Carefully consider your mix of investments to make sure they are generating enough income, and look for ways to make extra cash — such as getting a part-time job — if things are really tight.

More from FinanceBuzz: