Financial Advisors: What Retirees Should Stop Buying After Age 65
Written by
Josephine Nesbit
Edited by
Zuri Anderson
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After decades of saving and planning for retirement, turning 65 shouldn’t be about tightening the belt. While it’s important to have a budget, it’s about protecting what you’ve built and putting that money toward things that matter.
“When a retiree asks me questions about creating a retirement budget, I tell them that it shouldn’t feel like a punishment at all,” Trevor Houston, CEO at ClearPath Wealth Strategies, LLC, wrote in an email. Instead, it’s more about being intentional and making the most of what you have.
Here’s what retirees should stop buying after age 65, according to financial experts.
Why Retirees Need To Watch Their Spending
“As we age, our expenses often become like an onion with layers that are added on over time,” Houston explained. It’s not always easy to keep track of autopay drafts, regular bills, fees and subscriptions you may not remember signing up for.
“You aren’t looking to put your life in a chokehold,” he claimed. “You are looking to declutter.”
What To Cut From Your Budget After Age 65
Before deciding what expenses to cut, Houston recommends asking yourself: What is most important to me at this stage of life?
Once you have your priorities, it’s easier to cut out unnecessary expenses. And these don’t have to be drastic cuts, and according to Houston, retirees should view it as redirecting money toward things that either protect their health, enhance their freedom or their connection to those they love.
Here are some good places to start:
- Unused subscriptions and memberships. This could be streaming services, unused smartphone apps, monthly subscription boxes or a membership you rarely use. “These are the quickest ways to free up some cash and can add up to thousands a year,” Houston wrote. Linda Jensen, wealth manager for individuals and business owners and principal owner at Heart Financial Group, recommends looking at your bank account to find these costs and unsubscribing or cancelling memberships to services you no longer use or need.
- Transportation costs. Most transportation costs typically don’t decrease after retirement. “You still may have car payments or you may be paying more for insurance on newer vehicles than you need to be,” he explained. “You also may still have two cars when you only need one.” To save, one option is to use a rideshare service or take a taxi. But if you prefer to use your own vehicle, consider reducing to one car or selling a newer car for an older model with lower insurance premiums and no monthly payment.
- A home that’s too big. “I had one client where her entire retirement was locked up in the equity in her home,” Houston wrote. Downsizing is one option that many retirees take advantage of. “A smaller home can mean smaller utility and maintenance costs, as well as potentially ending or decreasing mortgage payments, which can make a world of difference,” Jensen added.
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