7 Top Expenses Retired Boomers Need To Cut in 2025, According to Experts
Written by
Jordan Rosenfeld
Edited by
Justice Petersen
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Retired boomers may feel that they’re only just getting a handle on their financial situation for 2024 before it comes to a close, but 2025 will be here all too quickly, and it’s never too soon to start thinking about ways to save money in the new year.
Most retired boomers are likely living on a fixed or limited income, and with inflation having sent many regular costs of living sky high in the last couple of years, your financial plans of the past may no longer be enough to get by.
Experts explain the top expenses retired boomers should cut in 2025.
Dining Out
One major expense to consider cutting is dining out too much, according to Cliff Ambrose, a federal retirement consultant (FRC) wealth manager and the founder of Apex Wealth.
“While convenient, frequent restaurant meals can quickly eat into a fixed budget. Instead, retirees can try meal planning and cooking at home, which not only reduces costs but also offers a healthier alternative,” he said.
Excess Entertainment
Mindy Yu, director of investing at Betterment at Work, added that retired boomers should also remember to take advantage of senior discounts for dining and entertainment.
“Attend free local events like concerts, community gatherings or take advantage of free museum days,” she said.
Reconsider Travel
Another expense to reconsider is travel, Ambrose said. He doesn’t mean you have to stop traveling but dial back on splurge-style vacations in favor of more budget-friendly options, such as local trips or off-season discounts.
“[These] can provide similar experiences without the hefty price tag,” he added.
Housing Costs
Housing costs can eat up a huge chunk of a retiree’s income. If downsizing isn’t feasible, explore refinancing options as interest rates decline or rent out part of the property — like a basement or garage apartment — for passive income, Yu suggested.
Lower-cost alternatives can include “[r]elocating to communities with lower taxes, or looking into senior housing that provides a more affordable lifestyle with built-in amenities,” she said.
Healthcare Costs
Yu also recommended that retired boomers regularly reassess insurance coverage and compare supplemental plans to avoid overpaying for unnecessary benefits.
“Look for community health clinics that offer discounted or free services and use telemedicine for non-urgent medical consultations to avoid high copays,” she added.
Impulse Purchases
Buying things you didn’t plan for is a surefire way to overspend. Set a strict monthly budget for nonessential items and stick to it, Yu urged.
“Use the 30-day rule: If you’re looking to make a large purchase, wait 30 days before buying to avoid impulse decisions,” she said.
Additionally, consider thrift shopping at secondhand marketplaces online where you can buy gently used goods, or swap and borrow items within community groups, Yu added.
Scrutinize All Recurring Expenses
Overall, Ambrose said it’s a good idea to scrutinize all your small expenses, from cable TV to gym memberships, so you can cut unused or underutilized services to free up money for other priorities, like healthcare or leisure activities.
“A good rule of thumb is to regularly review monthly expenses and ask, ‘Do I really need this, or is there a cheaper or free alternative?'” according to Ambrose. “Every little bit adds up when living on a fixed income, and small adjustments can make a big difference.”
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