Retirees Should Cut These 13 Expenses To Save up to $35K a Year

According to the Bureau of Labor Statistics (BLS), the average U.S. household now spends approximately $78,500 per year, but many retirees spend closer to $60,000 annually. While that might sound manageable on paper, in practice, a big chunk of that money goes toward recurring expenses that are easy to overlook and hard to notice in real time.

The good news? You don't need to downsize or give up the things you enjoy to free up your retirement budget.

By focusing on these 13 specific expenses and making small adjustments, you can free up to $35,000 per year without dramatically changing your lifestyle.

Forgotten subscriptions

Average annual savings: $200+

It starts innocently (one subscription here, another there), and suddenly you're paying for five platforms at once. A 2025 survey by CNET found that you may be paying $205 per year for subscriptions you forgot about.

Instead of canceling everything, try rotating services on a month-to-month basis. You'll still get your shows, just without paying for all of them at once.

Auto insurance

Average annual savings: $461

According to Consumer Reports, you could save almost $500 per year if you switch car insurance providers. Why? Insurance is one of those "set-it-and-forget-it" expenses, but staying with the same provider doesn't pay off. Rates and your driving habits change. If you're driving less in retirement, you may be overpaying without realizing it.

Taking an hour to compare quotes or bundle policies can lead to surprisingly big savings.

Dining out

Average annual savings: $3,945

The BLS found that, in 2024, eating out cost consumers almost $4,000. That's a big chunk of money that you probably didn't expect when thinking about that $25 burger you buy on occasion.

You hardly have to give it up entirely. But being a bit more intentional (like saving restaurant meals for special occasions) can make a noticeable difference.

Brand-name groceries

Average annual savings: $1,000–$2,000

Grocery prices add up quickly, and brand loyalty can quietly inflate your bill. Store brands have come a long way in terms of quality. In many cases, they're nearly identical to name brands.

Switching even half of your regular purchases to lower-cost alternatives can shave a significant amount off your monthly food spending.

Cable bundles

Average annual savings: $996

According to CableTV.com, while cable bundles can cost as little as $75 a month, the average price is $83, which translates to $996 per year. Besides, they often include dozens of channels you never watch.

If you haven't reviewed your plan in a while, there's a good chance you're overpaying. Try free apps and library media offerings instead.

Unlimited cell phone plans

Average annual savings: $2,000+

Wired has done the research and found out that T-Mobile has the best unlimited cell plans in 2026. But even so, multiple lines and family plans average $100-$200  per month or $1,200 to $2,400 annually.

If your phone habits are fairly light (calls, texts, a bit of browsing), switching to a lower-tier plan can cut your bill without affecting your usage.

Bank fees

Average annual savings: $120–$500

Monthly account fees, ATM charges, and other small banking costs are easy to ignore, but they add up. If you're paying just $10–$15 a month in fees, that's money you could easily keep by switching to a no-fee account. It's not the biggest category, but it's one of the easiest wins.

Impulse online purchases

Average annual savings: $2,000+

Online shopping makes it incredibly easy to spend without thinking twice, especially when you're just browsing.

Want a simple trick? Give yourself a 24-hour pause before buying anything non-essential. You'll likely find that many of those "must-have" purchases don't feel so necessary the next day.

Helping family with bills

Average annual savings: $2,000+

Seniors often enjoy helping family members or donating to causes they care about. There's nothing wrong with giving, but it's important to make sure it fits within your own financial plan.

Setting a clear annual budget for gifts or support can help you stay generous without putting pressure on your own savings.

A second car

Average annual savings: $7,500+

Many retirees hold onto two vehicles simply out of habit, even if one sits in the driveway most of the time. Still, that unused car costs you money every month through insurance, maintenance, registration, and depreciation.

If you find yourself rarely needing both vehicles, downsizing to one car (and using rideshare or transit occasionally) can free up thousands a year and still not affect your daily routine.

High utility bills

Average annual savings: $500–$1,000

If your home isn't as energy efficient as it could be, utility bills can creep up over time. The good news is you don't need a full renovation to see savings.

Sealing drafts, adjusting thermostat settings, or upgrading to energy-efficient lighting can lower your bills without much upfront cost.

Life insurance

Average annual savings: $575

Life insurance is essential at certain stages of life. However, we assume your adult children are financially independent, so if your major debts are paid off, you may not need the same level of coverage.

Reviewing your policy, scaling it back, or canceling it can free up $575 for your current needs, according to the latest BLS figures.

Credit card debt

Average annual savings: $1,000+

According to AARP, 48% of older adults with credit card debt owe at least $5,000, and 28% carry balances of $10,000 or more. Credit cards typically come with high interest rates. A significant portion of monthly payments goes toward interest, not the balance itself.

A $5,000 balance at around 20% interest can cost roughly $1,000 annually in interest alone. At $10,000, that number can easily double or triple.

Paying down or eliminating debt frees up cash every month. Even small extra payments can reduce how much you pay over time.

Bottom line

In many cases, cutting expenses in retirement is simply about noticing where your money is going and making a few thoughtful adjustments. You don't need to cut joy or comfort.

Instead, start with these small, smart money moves for seniors: Pick two or three expenses that feel easiest to change, and build from there. Even modest tweaks can create more breathing room in your budget faster than you might expect.

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