Smart Money Moves That Save Hundreds Each Year

The Financial Reality Facing Today's Retirees

Between rising gas prices and tariffs, I think we could all use a few money-saving tips right now. Almost half of adults in the United States— nearly 42 percent to be exact— don't have any retirement savings and plan on living off their social security benefits alone. For many seniors, that's less than $1,500 a month. Living off that kind of monthly income is difficult. Between rising grocery bills, gas prices, insurance and utilities, many older adults are feeling the pinch. Factor in expenses for the sandwich generation — people who are supporting aging parents while also raising children or supporting adult children — and it's hard not to have money on the brain.

According to its interactive modeling tool, an older adult in excellent health who lives in the Washington, D.C. area and pays a mortgage needs $3,665 per month to cover basic living expenses. Now, consider that the average monthly Social Security check was $1,847 at the end of 2023. This stark gap between income and expenses forces many retirees to make strategic choices about where to spend their money.

Every year, $30 billion in these benefits go unclaimed—often because those who are eligible either don't know about them or are unsure how to apply. That's why NCOA is committed to helping you find and access crucial financial programs that help bridge the gap between income and daily living expenses.

What Savvy Seniors Refuse to Buy

If you were a white-collar worker, it's a good bet your closets and dressers are packed with office attire collected over decades. You hardly need this stuff anymore, let alone more of it. If you do want to supplement your wardrobe, smart-shopping expert Trae Bodge recommends skipping boutiques and department stores in favor of second-hand shops. Secondhand clothing, jewelry, and furnishings are more popular than ever, boosted by online marketplaces. For a room or wardrobe refresh, spend a fraction of the cost by buying used, and purchase high-quality items that will last.

In that case, those bulk discounts — and the annual membership fees you pay to get them — may be a waste of money. "Look at your shopping habits," says budgeting expert Andrea Woroch. "Our daughter went to school in September, and we realized we have less people eating here now." She suggests ditching your Costco, Sam's Club or BJ's membership and buying smaller quantities at a local supermarket.

That fancy gym or boutique sports club may have seemed like a good idea when you joined it at the start of the year, but if you're not using it enough to justify the membership fee, it might be time to call it quits. Gym memberships typically cost $40 to $70 month, and fees at luxury gyms fees can run into the hundreds. Love ink on paper but still shelling out bucks for books? Bobbi Rebell, a certified financial planner and author of Launching Financial Grownups, suggests getting your reading fix for free by checking out books at your local library instead. "You still support authors by borrowing from the library," she adds, because libraries are likely to buy more copies of popular writers' work. You can also browse newspapers and magazines, saving more by shedding subscriptions.

Strategic Money-Saving Habits That Actually Work

Discount apps like GoodRx often beat the Part D copay price for common generics. You might pay $15 through insurance but only $5 with a coupon code. Always ask the pharmacist to run the price both ways before you pay. You are not required to use your insurance if the cash price is lower. This simple question can save you hundreds of dollars a year on maintenance meds.

Cable companies love to bundle landlines and TV packages you do not need. The most effective way to cut costs is to "break the bundle." Drop the TV and phone service to go "internet only." Use your cell phone for calls and a cheap antenna for local news. Premium cable packages can easily cost hundreds per month, but many streaming options provide similar content for a fraction of the price. Cutting the cable can free up a surprising amount of money in your budget, letting you allocate those funds toward other priorities.

Smart Thermostats: Installing a programmable thermostat like Nest or Ecobee can reduce heating and cooling costs by up to 15%, saving $150 to $300 annually depending on your location and the temperature ranges you set. LED Lighting: Replacing traditional bulbs with LEDs can cut lighting costs by 75%. For an average household, this could save $225 a year according to the US Department of Energy.

Building Financial Security Through Smart Choices

Many