Retirement brings a new kind of freedom: more time, fewer obligations, and the chance to shape your days and spend your money however you see fit.
But with that freedom comes a burning question: Are your purchases still serving you? Or are they just working-year habits, now stealthily draining your wallet?
As you're planning for retirement, may be time to reassess your spending. Retirees are dishing. They're sharing the expenses they most regret so you can learn from their mistakes. Trimming these items from your budget now may help you protect your nest egg for the long haul.
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New clothes and accessories
Your closets are likely already full from decades of work attire and weekend wear. You probably don't need anything more. Shopping experts suggest you "shop your closet" and rotate seasonal clothes to refresh your look for free.
If you need to add something new, secondhand shops offer high-quality pieces at a fraction of the price.
Pricey gifts for grandchildren
Spoiling grandkids feels great, but it's easy to go overboard. Many retirees regret not dialing back sooner. Kids often appreciate small tokens as much as expensive gifts, and they can still feel special without straining your budget.
I've seen this firsthand with my own children. For them, a $5 bill is just as exciting as $20, and they love it when their grandma sends them thrift store treasures.
Hobby overload
For decades, those figurines, rare coins, or art pieces were a delight to collect, but now they are dustables that spark little joy. Seniors often regret continuing these collections into retirement and often struggle to sell them later when they run out of space.
Focus instead on passing along these items to any kids or family who want them or donating them.
Get a protection plan on all your appliances
Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.
Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.
For a limited time, you can get your first month free with a Single Payment home warranty plan.
Warehouse memberships
Buying in bulk might have made sense when you had a full house. But now, many retirees admit food spoils before it's eaten, making annual fees and giant packages a waste. Downsizing to local grocery runs often saves more money in the long run.
Books and print subscriptions
Printed books, magazines, and newspapers pile up — and so do their costs. It's cheaper to switch to free library lending or digital services. This allows you to continue reading your favorite publications while saving hundreds of dollars per year.
You could also haunt your local book shop. I'm friends with a retired couple who go to their local Barnes & Noble daily to read their favorite journals for free. They usually double the outing with exercise, also throwing in a couple of loops around the mall.
Peak-season travel
When tied to school calendars, you don't have much of a choice. But now, travel during peak season just means paying inflated airfare and hotel rates. Off-season trips often deliver the same experience — if not better — for a fraction of the price.
Secondary vehicles
With no daily commute, many retirees discover they don't need two cars. Many retirees regret hanging onto a second vehicle just because. Dropping to one vehicle saves on insurance, registration, and maintenance.
Family cellphone plans
Adult children often stay on their parents' cellphone plans years after college. That generosity costs retirees an average of $200 a month for four-line plans.
Cutting off unused lines can free up significant cash without reducing your own coverage. Or better yet, get your kids to put you on their plan.
Garden center and spending
Flowers and plants brighten a space, but garden centers can drain your wallet. Retirees often wish they'd switched to discount retailers straight away, or even started growing their own vegetables. Some municipalities even offer free mulch, gardening seeds, and supplies.
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Property maintenance
When working full-time, hiring cleaners or landscapers might have made sense. But in retirement, handling some chores yourself can save thousands each year while also doubling as exercise.
Telecom bills
Cable, streaming, and phone plans stealthily eat into savings. Retirees surveyed by Money Talks News reported they could have saved thousands of dollars by dropping these services earlier. One retiree estimated cable alone had cost him $3,000 annually before cutting the cord.
Eating out and grocery splurges
Dining out, takeout, and impulse grocery buys add up. One retiree who stopped frequenting restaurants and ordering takeout meals saved $9,000 per year.
Also, be intentional at the supermarket. With food inflation still rising, being strategic at the grocery store matters more than ever.
Impulse purchases
Whether it's fast fashion, gadgets, or the latest home trend, impulse buys drain funds. One early retiree noted that skipping unnecessary upgrades, such as the latest smartphone model and luxury apparel, freed up thousands of dollars annually for investments.
Storage units
Monthly storage fees often mask an unwillingness to part with stuff. Many retirees say they regret years of wasted payments for items they rarely or never used. Downsizing saves money and simplifies your life.
Extended warranties
Extended warranties often cost far more than they pay out. Research shows that consumers overestimate product failure risks, resulting in wasted premiums. Instead, keep a small reserve fund for repairs.
Bottom line
Retirement is about living well, not spending out of habit. From cutting second vehicles to avoiding storage units, small changes add up to big savings.
According to Fidelity Investments, retirees typically live on 55% to 80% of their pre-retirement spending, which suggests you'll need to start dialing back to make your retirement stress-free.
There are likely many painless ways you can prune your spending, diverting more funds toward your savings while still leaving room for what really matters, like meaningful experiences and financial peace of mind.
- If you have $1,000,000 saved up, this guide is for you.
- Learn strategies wealthy retirees use to fund their retirement.
- Generate a real income while you enjoy your life.
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