How to Cut Costs in Retirement

Get your retirement on track by trimming expenses on housing, day-to-day expenditures, travel and leisure, and financial services

Christine Benz 21 January, 2013 | 5:55PM

Finding success in retirement is a matter of trade-offs. Some pre-retirees will say that they'd like to have every bit as much, if not more, money in retirement as they had while they were working, even if it means they have to work longer or economise more in advance. Ticking off items on their bucket lists is a key goal, and hiking in the Himalayas and playing golf at St Andrews don't come cheaply.

If you're nearing retirement and you don't have as much saved as you had hoped, working longer and continuing to sock money away are key ways to help bridge the shortfall

Other pre-retirees are comfortable with a different type of trade-off. They, too, would like a good quality of life in retirement, but don't mind economising a bit in their later years, especially if it means they can be retired longer. They consider time to be the true luxury that accompanies retirement. To get there, they're willing to downsize their homes, hang on to their old cars and entertain at home rather than enjoying lavish meals out.

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About Author

Christine Benz

Christine Benz  is director of personal finance at Morningstar and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances.

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