How to Reduce Costs in Retired Life and Living Frugally on Retirement Income

Ways to Cut Expenses in Retired Life – Living Well on Less in Retirement

How to spend less when you retire: Let’s check ways to cut expenses in retired life and living well on less in retirement. There are six expenses that can be left to reduce and save little money in retirement. One, life insurance and disability insurance are not useful if there are no dependents after death. Second, high investment fees that many retirees pay expertise fees which are unnecessary. Third, is property. In retirement, house with high utility and maintenance cost make more to pay. Fourth, is landline phone connection which is unnecessary if you are using cell phone. Fifth, is interest payment on debt that is impossible to repay in retirement. Sixth, is the electronic appliance that is old and consume more power.

average retirement expenses

Another idea to reduce expenses is to compare expenditure with average amount of it that usually people spend. Apart from above factors, below are factors where more and more money are spent without knowledge. Here we will discuss on how to reduce costs in retired life and living frugally on retirement income.

  • Housing:

According to a survey, people spend $651 per month in mortgage payments, property taxes and insurance who owned a home. The simple meaning is, if person is spending more in mortgage at younger age, saving for retirement is definitely less than others.

  • Transportation:

As per one report, people spent $10,202 per year on car payments, insurance, gasoline and maintenance who have average 2.4 vehicles. This is really important to ask people that they really need two cars even if not drive every day.

  • Utilities:

Electricity is the costliest bill in household which carries an average cost of $122 per month. The second largest bill is telephone bill cost nearly $95 per month. In short, overall people spend an average of $4,025 for gas, electricity, phones and water.

  • Entertainment:

People spend on internet, pets, tickets, picnics, internet, cable TV and admissions more than $3600 per year. In retirement, cut this cost by not spending much every month.

  • Healthcare:

Many people complain that their health care costs are very high but when there was a survey, surprisingly it was average $394 per month and this is really not a high cost. This amount is not sufficient to cover a Medicare supplement for two people older than 65.

  • Household furnishing and equipments:

Most people would have bought all the furniture they need and it is must to replace inefficient appliances. The average expenditure is $2,092.

  • Food:

Another thing that cost with $3,913 spent eating at home and $2,859 spent dining out. After retirement, people should eat healthy food at home and not outside.

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