April 1st 2026
By Ari Parker
As everyday expenses climb and retirees’ incomes stagnate, seniors are looking for—and many have found—meaningful ways to stretch their budgets. Explore ways to save.
As everyday expenses climb and retirees’ incomes stagnate, seniors are looking for—and many have found—meaningful ways to stretch their budgets. From maximizing Medicare benefits to tapping discounts, cutting recurring costs, and leveraging community resources, here are the most effective strategies to keep more money in your pocket without sacrificing your enjoyment of life.
Healthcare is one of the biggest budget items for retirees. The average 65-year-old needs about $172,500 to cover their healthcare expenses in retirement. Several strategies can bring these costs down without sacrificing quality and access to care.
Depending on your situation, you may be able to save on your healthcare costs by optimizing your Medicare coverage and benefit usage.
Picking the right Medicare coverage for your needs can help reduce your healthcare costs, but picking the wrong one for you could cost you thousands of dollars.
You have specific enrollment periods during which you can choose or update your Medicare: when you first sign up, each year during open enrollment, and during special enrollment periods. Even if you are happy with your coverage, it’s recommended that you review your plan annually. Plans can change, and so can your healthcare needs. A better-matched plan can cut your premiums or out-of-pocket costs significantly.
Ask about the Extra Help program. If your income is limited, the Low Income Subsidy (LIS) can dramatically lower your Part D drug costs. Many eligible seniors never apply simply because they don't know it exists or don’t know if they’ll be eligible.
Look into Medicare Savings Programs. If you’re eligible, your state may pay your Part B premiums.
Medicare provides access to preventive care that can help reduce your long-term healthcare costs. Things like annual wellness visits, cancer screenings, diabetes tests, and flu shots are covered.
If you are on a Medicare Advantage plan, you likely have ancillary benefits that can help reduce your everyday expenses. A couple of examples of these benefits are OTC cards and fitness memberships. OTC allowances work similarly to FSA and HSA allowances. They can be used to purchase everyday health and wellness items like vitamins, pain relievers, allergy medicine, and first-aid supplies. Examples of fitness memberships include SilverSneakers and Renew Active.
Shop 1,000+ OTC products with free delivery
Popular picks for your OTC credits on myotc.com
These four strategies can help you save on your prescription costs.
Compare your copay to the cost of your prescriptions using GoodRx or NeedyMeds.
Ask your doctor to prescribe generic prescriptions whenever possible.
Compare costs between pharmacies.
See if a 90-day supply from a mail-order pharmacy will cost you less than a 30-day fill from your local pharmacy.
Businesses across nearly every category offer senior discounts, but they don’t always advertise them. The rule is simple: always ask. Take a look at common discounts below and explore a complete list of seniors discounts.
Grocery stores
Many chains offer 5–10% off on designated senior discount days. Ask your local store if they have a discount on a certain day or during certain hours.
Restaurants
Major restaurant chains and local diners often offer discounted meals for guests 55+. It’s good to ask at any restaurant before you order.
Travel
AARP members and seniors 62+ get reduced rates on hotels, airlines, Amtrak, and Greyhound. The America the Beautiful pass gives seniors free or reduced lifetime admission to national parks for a one-time $80 fee.
Entertainment and memberships
Many movie theaters, museums, golf courses, and fitness centers offer senior pricing.
Software and technology
Microsoft 365, antivirus tools, and many streaming services offer reduced rates. Ask directly—discounts aren't always listed.
Fixed monthly expenses are some of the easiest to reduce. They just require a phone call or a quick audit. Below are some of the monthly bills you should review regularly.
Cable and internet bill
Call your provider and ask for a loyalty discount or a promotional rate. Threatening to cancel almost always unlocks a better offer.
Subscriptions
List every subscription you pay for and cancel anything you haven't used in the past 60 days.
Insurance policies
Auto and home insurance rates vary widely. Get three competing quotes annually. Bundling policies, raising deductibles, or adding safety features can lower premiums by 15–25%.
Energy costs
Ask your utility company about senior or low-income discount programs. LIHEAP helps with heating and cooling costs. You can also increase efficiency with some small home improvements.
Small, consistent changes in how you shop and spend can add up to significant annual savings without meaningfully changing your quality of life. Below are a few tactics you can use to save money or even earn a little spare change.
Many people choose to buy store brands to reduce grocery costs. Some people are surprised to find that store brands are as good as—or even better—than name brands. Switching can reduce your grocery bill by about 25%.
Use community resources. Use your local library instead of buying books. Opt for public transportation when you can. Finally, use your local parks and museums for cheap—or even free—activities. All of these changes can go a long way in saving you money.
Need a little extra cash? With Facebook Marketplace, you can make a little money from decluttering your home. Some seniors also choose to pick up a part time job working retail or driving for Uber to make a little money and stay active.
Rising costs are real, but there are many things you can do to fight against them. If you’re feeling stressed due to finances, start with one section above, implement two or three changes, and build from there.
