15 Expenses You Should Cut if You’re Going to Rely on Social Security

If your retirement plan includes relying exclusively on Social Security benefits during retirement, it is probably wise to cut some of your expenses.

The average monthly Social Security benefit in 2025 is just under $2,000, which isn’t much money for those trying to cover living expenses.

With that in mind, here are some costs you should cut if you plan to live on this income alone.

Many retirees don’t need a large house, so downsizing might help you live better on Social Security benefits.

A smaller home can even reduce property taxes and utility bills, and you might not have to pay as much in maintenance costs. If you sell your large home for a nice profit, you can use the money to boost your retirement savings.

If you plan to stay put, consider paying off your mortgage before retirement. This eliminates one of your biggest monthly expenses, making it possible to get by for less.

Saving money on groceries isn’t as hard as it sounds as long as you plan well. You can avoid impulse purchases by making a specific shopping list and sticking to it.

Another way to stretch your grocery budget is to buy in bulk, although it will cost more initially. Purchasing generic items and things that are on sale also can reduce costs.

The cost of regularly eating out adds up quickly. Buying groceries to cook at home can help you stretch retirement funds further.

It’s OK to occasionally visit the restaurant, but make it a treat instead of a regular occurrence. 

Cutting back on cable and streaming services can save you a lot of money. Or, consider bundling plans to reduce costs.

You could even eliminate cable and streaming costs by checking out DVDs at the library or watching videos for free on websites such as YouTube.

When you’re working, someone might depend on your income. Life insurance provides financial protection for them.

But once you’re retired, you might no longer need your life insurance policy.

There can be good reasons to keep life insurance, however. Perhaps you want to leave money to heirs via your policy, for instance. So, think this decision through carefully.

Traveling is one of the most exciting parts of retirement, and you can make it happen on a budget.

Choose affordable locations and be flexible with booking dates so you can nab the best deals.

Look into senior discounts for airlines, hotels, and rental services.

Trendy clothes that frequently need to be replaced are an expense you should cut in retirement. Instead, choose high-quality essentials that will last a long time.

You won’t need a lot of professional clothing anymore, so that’s another place you can save money. You may even find perfect clothing items you love at thrift stores.

Subscriptions can cost you quite a bit of money each month. Perhaps you have forgotten about some of these costly subscriptions.

Scour your bank account statement for subscriptions and consider canceling those you don’t use.

Having multiple vehicles means paying more for insurance and maintenance. Selling one or more vehicles can reduce such costs.

If you and your spouse are both retired, you may be able to get by with just one car.

Phone bills and internet service can get expensive, so look for cheaper providers.

Another way to save is to ask for a senior discount. Some businesses offer them, so it’s always worth inquiring.

Do you pay for a monthly gym membership? Perhaps you should cancel it and invest in some weights for your home. This should save you money over the long run.

Look for videos where professionals teach you to do at-home workouts so you can stay active without paying too much.

Walking, hiking, swimming, gardening, and other physical activities are also good ways to stay active without spending.

Using less energy can save you money each year, and it’s relatively easy to accomplish. For example, install a programmable thermostat that adjusts the temperature automatically at night or when you’re out of the home.

Sealing cracks around windows is another way to save on heating and cooling costs. You can also use LED lights instead of less energy-efficient options.

Check into senior discounts that might lower your taxes. For example, those over 65 may be eligible for breaks on property taxes depending on where they live.

Another way to lower taxes is to have an intelligent plan for withdrawing money from retirement accounts in a tax-efficient manner. Consult with a financial advisor who can help you create the right withdrawal strategy.

If you have a storage unit, now is a good time to go through all the belongings you keep there. You can donate, throw away, or pass down items you don’t need.

Reducing storage costs could save you hundreds of dollars a month, making it easier to support yourself on your income.

You could be overpaying for insurance on your home or car. Comparing rates from different providers can help you save money on car insurance and other types of coverage.

Or ask about discounts you might get if you bundle insurance policies with the same provider. Another option is to find out how much your monthly premium will drop if you keep a higher deductible.

Relying only on Social Security income during retirement can be challenging, but it is possible if you’re willing to cut some expenses.

As you prepare for retirement, look for ways to supplement your income or take advantage of discounts for seniors.