How to Budget & Save During Retirement 

Worried about your finances these days? You’re not alone.  

About 80% of Americans aged 60+ face financial insecurity, and it’s not hard to guess why. The cost of everyday living continues to climb, from grocery store runs to annual checkups. And when you’re on a fixed income or limited budget, it can feel even harder to make your dollars stretch. 

But you don’t have to navigate retirement with financial stress. Even with limited income, there are ways to save more and live more comfortably as you get older. Here’s how. 

Start with a budget. 

It’s never too late to budget – or change your method if it’s not working for you. There are a variety of budgeting methods. You just need to find one that fits your needs and lifestyle. Options include: 

• 70/30 method 

Spend 70% of your after-tax income on expenses and 30% on savings and debt. 

• 50/30/20 rule 

Divide your after-tax income into three categories: 50% on needs, 30% on wants, and 20% on savings and debt. 

• “Pay Yourself First” rule 

Set aside money for savings and investments first, then fund your other budget categories. 

• Zero-based budget  

Assign a specific purpose to every dollar of income until the money you earn matches the money you spend (needs, wants, and savings) exactly. 

• Envelope budget  

Allot your money into categories (“envelopes”) and only spend the money in those envelopes each month to reinforce deliberate spending. 

• Budget calendar 

Take a calendar and write down when money comes in and when expenses get paid so you can see how your money moves each month. 

If you like using apps, consider investing in a budgeting app. Some cost more than others. And like with different methods, there are different apps to meet your needs. Highly rated apps include: 

• Monarch Money 

• YNAB (You Need a Budget) 

• EveryDollar 

• Goodbudget 

But don’t ignore the power of a simple spreadsheet using Microsoft Excel or Google Sheets. You can create a budget using a spreadsheet template and track your finances that way. This is a good option if you’re tech savvy or like a no-frills, hands-on approach. 

Save. 

No matter the budget method you choose, you’ll want to save money where you can, especially when you have a limited or fixed income. Consider: 

• Senior discounts on clothing, restaurants, travel, cell phone bills, and more; 

• Membership programs, such as AARP or warehouse stores, for added discounts and special pricing; 

• Cutting costs where you can, including swapping generic medication for brand name drugs, using canned or frozen produce instead of fresh, and cutting cable in favor of streaming services; 

• HYSAs – or high-yield savings accounts – which may offer significantly higher returns on your money vs. traditional savings accounts; and 

• Medicare help from licensed insurance agents, who can help you look for ways to save on premiums and other costs. 

For more information on resources you might qualify for, check out the BenefitsCheckup from the National Council on Aging. 

Plan with a pro. 

Financial planning isn’t just for the wealthy. Professionals can help you see the big picture and plan for the future, even with modest means. There are two general types of financial pros: advisors and planners. 

• Financial advisors primarily help with investments while financial planners help with broader, more comprehensive money management. 

If you have investments, such as stocks or retirement accounts, a financial advisor can help you decide how to manage those investments. Financial planners see the bigger picture, including general savings and estate planning. 

Why work with a professional: 

• They’re trained and typically licensed and/or certified. 

• They know about relevant programs. 

• They may be able to help you save more. 

Having an extra set of professional eyes may also help you breathe a little easier, knowing someone who does this for a living is keeping tabs on your financial future. And if you have debt, a financial planner can evaluate your situation and create a plan to help you get back on track.  

HealthCompare wants to set you up for success. We’ve partnered with Retirable, a trusted financial planning resource that helps customers like you plan for the future. 

Retirable is a retirement planning company that helps people understand their full financial picture, at their own pace and on their own terms. They emphasize education and transparency, with total support so you can plan with confidence. Key features: 

• Personalized guidance and investment management 

• Custom spending plans 

• Tailored tools and features designed specifically for retirees 

Learn how Retirable can help you enjoy a confident, worry-free retirement. Call 888-207-6054 TTY-711 to get started or visit Retirable and HealthCompare 

Watch out for financial scams. 

Financial scams aren’t unique to the 65+ crowd, but scammers do tend to target older adults, assuming seniors have more money in the bank and that they aren’t tech-minded enough to prevent digital theft.  

But you don’t have to be an easy target. Here are some common financial scams to watch for: 

• Grandparent scam 

The “grandparent scam” plays on emotion. A scammer will impersonate a family member, such as a grandchild, and ask for help getting out of a jam – such as a traffic ticket or an unexpected car repair. Always verify any messages you get, especially if they sound off or out of character for the person contacting you. Avoid sending money over the internet to people you can’t verify. 

• Financial services scam 

If you’ve ever gotten an unexpected text or call from someone claiming to be your bank or the IRS and saying you owe money, that’s a scam. Real financial or government entities won’t call or text you out of the blue. They typically send letters first. Verify any account information directly with your financial institution by calling the number you know – not the one that appears in the fraudulent text or call.  

• Tech support scam 

Tech scams assume that older adults don’t understand new technology and prey on that insecurity. Your computer or device might experience “problems,” and a number could pop up telling you to call customer service to fix the issue. Once a scammer has access to your device, they can steal important data. For real tech support help, reach out to a friend or family member, or call the main customer service line for your device’s brand. 

Keeping a sharp eye out for financial scams can help you avoid money trouble. But if you do encounter a scam, report it to the Internet Crime Complaint Center, a website managed by the FBI. 

Extra resources: 

National Council on Aging | How to Budget Your Money: A Guide for Older Adults (link) and Money Matters: Top 10 Budgeting Tips for Older Adults (link) 

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HealthCompare Insurance Services, Inc., an Allstate company, is a licensed health insurance agency. It does not underwrite or administer health insurance policies. Customers interested in health insurance products will be assisted by a licensed insurance agent from HealthCompare Insurance Services, Inc. Visit Medicare.gov for more information or call 1-800-MEDICARE (TTY 1-877-486-2048 

Investing involves risk, including the possible loss of principal. Results vary based on individual circumstances. Financial planning services do not guarantee investment outcomes or a specific level of income. 

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