![\"Survey](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2018\/11\/table-cutting-costs-in-retirement-775x354.png\")
<\/a>Even with money coming in from investments, retirement accounts, and Social Security, you\u2019ll be strapped for cash on a monthly basis if you don\u2019t cut your costs and come up with a budget you can live with.<\/p>\n
\u201cWhether it\u2019s the cash received from selling a home, or money in an IRA, when it comes to making your money last you need to make sure you\u2019re not spending more than you should on an annual basis,\u201d says Matthew Stewart<\/a>, president of Forestview Financial Partners, LLC<\/a> and a certified financial planner with 20 years of industry experience.\u00a0\u201cA financial plan can help you determine how much you can spend, based on what your resources may be able to provide for you over your life expectancy.\u201d<\/span><\/p>\n Reducing living expenses is almost a rite of passage for retirees because practically everybody\u2019s doing it. In fact, the average retired household spends 25% less<\/a> than the average working household.<\/p>\n So how do you go about cutting your costs in retirement?<\/p>\n Reducing your housing costs is a good place to start.<\/p>\n If you\u2019re like most people, you\u2019ve been spending around one-fourth of your annual income<\/a> on mortgage payments. As one of your biggest monthly expenses, it\u2019s no surprise that by paying off your mortgage<\/a> you\u2019ll dramatically reduce your monthly housing costs.<\/p>\n \u201cThe security and peace of mind that a completely paid off home gives to people as they enter retirement is pretty powerful,\u201d observes Stewart.<\/p>\n Cutting back on housing expenses isn\u2019t just about how you live, it\u2019s about where you live. Even if you reduce your utilities usage, shop economically, or eliminate unnecessary spending\u2014your monthly bills are still going to be too much if you live in an expensive city.<\/p>\n Maybe you think you\u2019re in the clear because you don\u2019t live in a high-profile metropolitan like Los Angeles, New York City, or Chicago. Well, think again. Some unlikely areas have seen the most dramatic increase in the cost of living this past year\u2014increasing as much as 25 to 36%<\/a>.<\/p>\n So, no matter how much you love your current city, it makes good sense to keep your options open to relocating to another state when it\u2019s time to retire. When you consider expenses like grocery, energy, and medical costs, the three most affordable states<\/a> to live in 2018 are: Mississippi, Arkansas, and Oklahoma.<\/p>\n Paying off your mortgage doesn\u2019t mean your house is now completely expense-free\u2014you\u2019ll still need to pay annual property taxes on the place. Or will you?<\/p>\n When you do your homework on the best low-cost locations to move to when you retire, make sure you check out the property tax laws, too.<\/p>\n Along with picking a place that has lower property taxes for all residents, be sure to check out whether or not your potential new home has reduced rates or exemptions<\/a> for seniors. If you play your cards right, you\u2019ll be paying very little or nothing at all on property taxes.<\/p>\n For every property you\u2019re seriously considering, your real estate agent will provide you with documentation on the property\u2019s price history as well as a monthly property tax breakdown. They should also be able to supply you with a list of property taxes county by county in your city.<\/p>\n You can also find out the property taxes on a house by doing a search on the physical address online. For the most accurate information, check the local county assessor\u2019s website or head to your county assessor\u2019s office.<\/p>\n Living small can actually save you big bucks in the long run<\/a>. Not only are property taxes less expensive on a smaller house, your other bills will be reduced<\/a>, too. For example, less square footage means your heating and air conditioning costs will shrink.<\/p>\n Maintenance will be cheaper, too. A smaller yard means less work for your landscaper. Fewer rooms means less spent on cleaning supplies or cleaning services. And a smaller roof is less expensive<\/a> to repair or replace.<\/p>\n Just keep in mind that downsizing doesn’t come cheap<\/a>. Home prices have skyrocketed in recent years, which means buying a smaller house may cost you more than you expect. Plus, don\u2019t forget to budget for moving expenses, including closing costs.<\/p>\n Relocating to a smaller home or less expensive area aren\u2019t the only way to save money by moving. You can actually reduce expenses by moving into a 55+ community with a homeowner\u2019s association that provides low or zero maintenance living.<\/p>\n \u201cHomeowners associations that provide zero maintenance living cover everything from the drywall inside, out to the exterior of the home, including the roof and all of the landscaping,\u201d explains Zack Morris of the Huff Group<\/a>.<\/p><\/blockquote>\n \u201cSo homeowners no longer needed a traditional homeowners insurance policy. They can just get a content insurance policy for their belongings that costs an average of around $675 versus $3,500 for a homeowner’s insurance policy. That\u2019s a tremendous savings for retirees.\u201d<\/p>\n While this does make for maintenance-free living, it does come at a cost. You\u2019ll be required to pay the homeowners association\u2019s dues and assessments<\/a>, which could potentially lead to you paying out more in the long run.<\/p>\n If you\u2019re single, retiring can be an especially scary time. You alone are on the hook to cover all living expenses with your retirement income, and that can deplete your savings in no time.<\/p>\n That\u2019s why some solo retirees are teaming up and becoming roommates<\/a> to cut down on housing costs.<\/p>\n Others are seeking intergenerational living arrangements<\/a> after they leave the workforce. Beyond saving money, this gives retirees an opportunity to impart a little life wisdom to the younger generations.<\/p>\n Whether your roommate is a college student, young professional, or fellow retiree, with the right roomie you\u2019ll find someone who can share household chores and companionship, too.<\/p>\n It\u2019s no secret that long-term care and nursing homes can eat away at your life savings. If you want to put off the possibility of that expense as long as possible, you\u2019d be wise to make safety and accessibility home improvements sooner rather than later.<\/p>\n So add motion sensor lighting in your dark hallways that\u2019ll pop on at night. Install senior-safe flooring<\/a> like low-pile carpet to reduce trip and slip hazards, or impact-absorbing flooring to lower the chance of injury from a fall. Replace doorknobs with easier-to-turn lever door handles. Revamp your bathroom with safety features<\/a> like grab bars and non-slip safety mats in the shower.<\/p>\n After all, if you wait until you feel you need them, that may be too late. So invest in safety and accessibility features in your home now and you\u2019ll save medical costs later on.<\/p>\n Downsizing isn\u2019t the only way to cut down on your monthly energy bill. Home improvements can go a long way to reducing your utility costs.<\/p>\n \u201cThe more efficient you can be, more cost savings you’re going to see,\u201d Morris advises. \u201cSo, install double pane windows, reinsulate in your attic, put in new weather strips and seals on doors and windows. These things help the efficiency of the home, so you’re going to see savings in utility bills.\u201d<\/p>\n Technology can help out, too. After all, \u201csmart\u201d isn\u2019t just for cellphones anymore\u2014energy-saving tech<\/a> like a smart thermostat, smart lighting and smart appliances can be programmed to do the saving for you.<\/p>\n And with the right home automation apps<\/a>, you can adjust your smart tech with your smart phone, even when you\u2019re out and about. So you no longer have to worry if about forgetting to adjust the thermostat or turn out the lights before you hit the road.<\/p>\n What\u2019s the first thing that pops into your head when you hear the term \u201csenior discount?\u201d Cheap eats, right? Well, lucky for you these discounts aren\u2019t just for \u00a0early bird specials anymore.<\/p>\n Stores that sell groceries, home decor, cleaning supplies, and more offer senior discounts<\/a> too\u2014on certain dates or on specific products. For example, Kohl\u2019s department stores offer a 15% discount to seniors<\/a> every Wednesday.<\/p>\n Contact your local utility companies and ask if they have any reduced rates for seniors<\/a>. Some service companies may provide senior discounts, as well\u2014like Roto-Rooter<\/a>.<\/p>\n For even more discount opportunities, ask the real estate agent who helped you sell your home for referrals for services like home repair and remodeling.<\/p>\n \u201cWe have a list of preferred vendors who offer a discount, typically 15%, simply because we’ve referred them out to them,\u201d says Morris.<\/p>\n Not every place offers a senior discount, but it doesn\u2019t hurt to ask!<\/p>\n If you still can\u2019t quite make ends meet and you don\u2019t want to cut down on any more expenses, you can always increase your monthly retirement income with a part-time job.<\/p>\n With minimum wage on the rise, many companies are looking to hire seniors<\/a> for their great work ethic and sense of responsibility.<\/p>\n![\"Infographic](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2018\/11\/smart-cutting-costs-in-retirement.png\")
<\/a>1. Pay off your mortgage<\/h2>\n
![\"Average](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2018\/11\/bls-cutting-costs-in-retirement.png\")
<\/a>![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2018\/11\/cutting-costs-in-retirement-sign.jpg\")
<\/a>2. Relocate to a less expensive locale<\/h2>\n
![\"Chart](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2018\/11\/city-cutting-costs-in-retirement.jpg\")
<\/a>3. Check out areas with low property taxes (and tax breaks for retirees)<\/h2>\n
![\"Map](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2018\/11\/property-taxes-cutting-costs-in-retirement-775x641.jpg\")
<\/a>4. Downsize into a smaller home<\/h2>\n
![\"Seniors](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2018\/11\/unnamed-file.jpg\")
<\/a>5. Buy in a 55+ community with a homeowner\u2019s association<\/h2>\n
6. Consider a roommate or intergenerational living<\/h2>\n
![\"Elderly](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2018\/11\/cutting-costs-in-retirement-shower.jpg\")
<\/a>7. Make Home Improvements to help you age in place<\/h2>\n
8. Install Energy-Saving Features<\/h2>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2018\/11\/discount-cutting-costs-in-retirement.jpg\")
<\/a>9. Ask for a senior discount<\/h2>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2018\/11\/piano-cutting-costs-in-retirement.jpg\")
<\/a>10. Increase your income (and improve mental health) with a part-time job<\/h2>\n