7 Small Expenses That Can Add Up Quickly Once You’re Retired
Written by
John Schmoll
Edited by
Jenna Klaverweiden
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Retirement can be an exciting time. Your years of planning have now become reality, allowing you to enjoy your vision of post-work life. Amid all of the new changes, one can reign supreme, and that’s moving to a fixed income. Although not bad, per se, it does require a shift in money management, as everyday expenses can sneak under the radar and have a greater impact on your budget.
These are seven small expenses that can quickly add up in retirement years.
1. TV Viewing
Watching the latest show or movie is a fun leisure activity. Unfortunately, TV is growing increasingly expensive. The average person spends nearly $170 per month on video entertainment, according to TiVo.
If you’ve cut the cord, find ways to reduce costs, such as canceling a service if you haven’t used it in over a month. For those with cable, consider opting for streaming. Even cutting costs in half can significantly increase savings.
2. Food Delivery
Nothing beats ordering food from a meal delivery app like DoorDash on a Friday evening or just because. Unfortunately, it’s easy for this to become an expensive habit, as fees can be notoriously high.
Americans spend nearly $120 monthly on food delivery, according to Empower. Consider reducing order frequency to lower budgetary stress.
3. Banking Fees
Where you bank matters, especially as a senior. Banks often charge fees, with the maintenance fee being the most notorious. It’s fair to expect to pay as much as $25 monthly for this charge, according to CNBC.
Many banks offer senior-friendly accounts that waive common fees. The financial institution may market these accounts, and if not, you can inquire at your local branch for options. If you travel often, selecting a bank that reimburses ATM fees can also be helpful.
4. Impulse Purchases
Impulse spending runs the gamut, from a $5 coffee to mindless online shopping. These expenses may seem negligible, but they can quickly get out of hand if not closely monitored.
Create a budget for your favorite impulse purchases and identify ways to stretch it, such as brewing coffee at home or shopping online only when you have a discount code and need the item.
5. Prescription Drug Costs
Affordability of prescriptions is a significant concern for many retirees. Nearly 40% of seniors have personally skipped filling a prescription, or know someone who has, due to cost, according to AARP.
Being your own advocate is vital. Ask your doctor about generic alternatives when they prescribe a medicine. The same philosophy can be employed when purchasing over-the-counter drugs to save more.
6. Gym Memberships
Exercise is important, but if you’re not using your gym membership, it’s likely hurting your budget. The average cost of a gym membership in the U.S. is $50 per month, according to Smart Health Clubs. Premium clubs can easily triple that cost, if not more.
If you want a gym membership, consider a budget option that is a fraction of the cost. You may not get all the perks of a premium gym, but they work. For those who don’t need a gym but are still paying for one, consider canceling the membership and exploring other ways to stay active.
7. Home Maintenance Fees
Unless you plan on doing a lot of the work yourself, retirement life may involve outsourcing tasks like yard work, handyman services and sprinkler maintenance.
The costs may not seem outlandish, but they can add up. Comparison shopping or bundling services is a good way to identify the best values. Your area may even have resources that serve seniors to keep costs in check.
You worked hard to plan for retirement. It’s wise to keep spending in check, even in small amounts, so you don’t needlessly drain your resources. Don’t deny everything you want, but be purposeful with spending to enjoy life.
More From GOBankingRates
