How to Make Your Retirement Savings Last: Smart Budgeting After 65

Posted on Tuesday, June 24, 2025

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by AMAC, D.J. Wilson

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To comfortably retire at 65, it is said that individuals should aim to have saved 10 to 12 times their pre-retirement income. This guidance is based on the 4% rule, where retirees can withdraw 4% of their savings annually to cover living expenses. Most folks who are retired live on fixed incomes and are focused on managing expenses, maximizing income, and planning for the future. Key strategies to stretch one’s funds includes some of the following:

• Tracking spending: Budgeting apps like Rocket Money and NerdWallet offer helpful budget tracking and planning tools. Spreadsheets, bank statements, and diaries are also helpful for seeing what money is coming in and going out. When accounting for income, include Social Security, pensions, retirement accounts, and any other sources of incoming money. When accounting for expenses, consider all bills, subscriptions, insurance, food, entertainment, clothing, and more. Many seniors apply the 70/30 rule, a common guideline to spend 70% of your income on needs and wants and save 30%.  Another option is the 50/30/20 rule, allocating 50% to needs, 30% to wants, and saving 20%. Talk to your trusted financial advisor to determine how to best spend and save money to make your retirement savings last. The action of reviewing finances is essential for eliminating wasteful spending, building savings, and making wise money decisions. The goal is to adjust your budget regularly to ensure you have a safety net for unexpected expenses.

• Consolidating debts. For people with multiple debts, it often makes sense to consolidate them into a single loan with a lower interest rate. The goal is to bring down monthly payments, pay off debt faster, accelerate growth of credit score, and/or reduce monthly payments to balance the budget. If that’s not possible, prioritize paying off high-interest debt like credit cards. Then, do your best to avoid overspending that leads to carrying large balances on credit cards. Also avoid missing payments that can raise your interest rates and negatively impact your credit score. Downsizing one’s home or owning a single car versus two can help reduce financial strain if needed.

• Reducing costs. During the retirement years, especially where money is lean, it is necessary to be mindful of spending. As people get older, prioritizing expenses and reserving money for healthcare and other essential needs is vital. Identifying wasteful spending to cut is a great way to achieve cost savings. Look for unnecessary subscriptions, impulse buys, and areas where you can reduce spending without sacrificing quality of life. Also look towards making lifestyle changes that can positively impact your spending habits. Here are some examples: cook at home more often, enjoy free entertainment, travel off season, adjust your thermostat and lights at home, use public transportation or walk, embrace sustainable living such as composting and more.

• Maximizing discounts. Aging is a unique experience, and there are some definite perks like senior discounts. Many businesses understand that inflation, high interest rates, and the overall state of the economy impacts seniors with fixed incomes. Organizations also recognize the contributions of seniors to society and seek to treat them well by offering perks and discounts. An AMAC membership, for example, provides access to benefits exclusive to people of mature age. Older individuals are also encouraged to investigate money-saving programs like SilverSneakers, a national program designed to keep older individuals fit. There are other clever ways to maximize savings. Don’t automatically pay top price. Rather, shop around for services such as affordable Medicare plans. A licensed broker can guide you with the complex task of searching for the best plan. Similarly, senior citizens may explore options for reducing prescription drug costs and more.

• Following a budget/professional advice. A trusted accountant, CPA, and/or financial planner can advise clients on a variety of financial goals. This includes discovering ways to accomplish a household budget, manage debt, save and invest wisely, forecast financial trends and realize opportunities for growth, handle taxes and improve tax efficiency, handle Social Security and pension planning and more to achieve a comfortable retirement. Most seniors will likely benefit from the advice of a financial expert for handling personal and/or business accounts.

Making retirement savings last

Retirement is a fun phase of life, affording people the freedom to enjoy personal pursuits on their own timeline. However, it may also be a complex time, especially when it comes to finances and stretching funds. Most folks who are retired live on fixed incomes and are focused on managing expenses, maximizing income, and planning for the future. Utilizing key strategies like those mentioned above can go a long way toward securing financial satisfaction during retirement, giving senior retirees the peace of mind they deserve.

Disclosure: This article is purely informational and is not intended as a substitute for professional financial advice.