7 Frugal Living Tips Retirees Should Focus On in 2025
While it’s tempting to think of your retirement as a time to let loose and live a little, a little moderation can save you money and go a long way in helping you live the comfortable life you deserve in the long run.
The good news is that you don’t necessarily have to overhaul your entire lifestyle in the name of thriftiness. Yes, it’s always a good idea to stay healthy, cook at home when you can, stay vigilant with your investments and keep money-saving hacks in your back pocket. However, following some simple frugal retirement tips can help ensure that your nest egg doesn’t hatch too early.
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Whether you are retirement planning or have already reached full retirement age, now could be a good time to put down the credit card and lean into frugal living instead. Remember, retirement saving and investing is comprised of more than just workplace retirement plans and catch-up contributions, so it’s good to diversify the areas in which you sustain your wealth.
The goal is to not necessarily work smarter or harder, it’s simply to not have to work longer. GOBankingRates did some research, and some basic math, to come up with a list of easy and frugal tips that can help you stay on track for your golden years.
Save Your Social Security Increase
For 2025, the Social Security Administration (SSA) determined the cost-of-living adjustment (COLA) to be an increase of just 2.5%. This is lower than in previous years, so a little cost-effective frugality could go a long way in the new year.
That being said, inflation and interest rates are lumpy measurements when it comes to how deeply your retirement savings will be gouged. Depending on where you live and the type of creature comforts you prefer, the general cost of living may only go up modestly for you, or even down in some areas.
Whether that’s the case or not, you can opt to save your Social Security increase instead of spending it, making your money last longer. If you’ve managed to keep your overall living costs more or less the same, take that 2.5% increase and put it in a high-yield savings account. That might not sound like too much, but if you have an emergency in 2025, that extra few hundred dollars in your savings could be enough to keep you out of debt.
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Trim Your Subscriptions
If you take a close look at your monthly bills, you might be surprised to see how many recurring charges you rack up every month. Streaming services and subscriptions like Netflix, Hulu and Amazon are a big culprit and can run over $100 per month when added altogether.
You may also have numerous small charges that you don’t even think about that can add up to big money over the course of a year. Try imagining that high total as an old phone bill, with all the small charges acting like avoidable long-distance calls.
For example, if you give $5 per month to PBS, $2 per month to 10 different online newsletters and $20 per month to your favorite charity, that amounts to another $540 per year. Combined with your streaming costs, you may be paying out over $2,000 per year in subscription services.
While everyone has to make their own decisions about how to prioritize their monthly spending, there’s likely some fat that can be trimmed when you review your own spending patterns. When reviewing, a good rule to follow is if you haven’t used an app or platform in a month, you shouldn’t pay for it monthly.
Recalibrate Your Grocery Shopping List
Saving money in retirement can be as simple as writing out and sticking to a grocery list. Even though grocery costs may be up as a whole, with some juggling on your part, you may be able to save a little money while still eating similar foods.
For example, swap out one type of berries for a cheaper sort, or switch from a name brand to a store brand. If you like to splurge on certain types of steak or seafood, trim the times you eat them from twice per month to once, or consider less expensive varieties.
Having a concrete list you don’t deviate from also keeps you from impulse purchasing.
Get Rewarded
Loyalty and reward programs seem to be everywhere these days, and if you use them properly, you can end up saving lots of money. Your favorite grocery stores and restaurants likely offer promotions ranging from discounts on purchases to free birthday meals, while airline and hotel programs provide points and miles that you can use to reduce the cost of future trips.
You will generally have to provide your email address and/or phone number to score these deals, but if they’re for goods and services that you use frequently, you’ll likely find the advertising you receive to be valuable.
Live Your Authentic Life
Retirement is no time to get caught up in keeping up with the Joneses. Even worse is trying to live the retirement lifestyle that is marketed to you or that someone else thinks you should live. Retirement is when you finally have the chance to really do only what you want to.
Rather than spending money trying to look like you live a certain way, only spend money on things you really need or genuinely want.
Comparison Shop
One of the main upsides of a capitalist society is that businesses compete with each other to get customer dollars. As a consumer, this benefits you immensely.
Nearly any product or service you’re interested in is likely offered by a number of different vendors, so you can pick and choose the combination of price, service and quality that works best for you. This goes for everything from groceries and restaurants to clothing and insurance.
Downsize
Retirees often have the opportunity to downsize or relocate, two strategies that can cut down on expenses immensely.
If all of your kids have moved out of your house, for example, you might consider moving to a smaller house or apartment. If you’re still paying your mortgage, your monthly costs will likely decrease, stretching your money further. If your house is completely paid off, selling it might allow you to buy or rent a new home and still end up with tens or even hundreds of thousands of dollars in your checking account.
Final Take To GO
Frugal living tips can go a long way toward saving for retirement or living your best life once in retirement. 401(k) plans and individual retirement accounts, or IRAs, are must-haves, but it’s all the small details of how you edit your spending habits that equal big savings.
Practicing frugality doesn’t mean you go without; it simply means you get the most out of what you go with.
Caitlyn Moorhead contributed to the reporting for this article.
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