Downsize

According to national statistics, 32 percent of the household income of retirees aged 65 to 74 goes to housing expenses. If you want to reduce such costs, you could find someone to share your home and related bills. Or you could just opt for downsizing. After all, what’s the point of living all alone in a big house that only bleeds your budget dry?

DimeWillTell’s Ferguson says moving to a smaller place is much more cost-effective. “Not only will you see money back in your wallet by downsizing, but it also opens the choice of moving to a place that has lower costs of living,” he says.

But before you decide to make such a move, make sure you also read our post: Downsizing Your Home? Stay Away From These 8 Crucial Mistakes.

Relocate

A city with a low cost of living is attractive, especially in retirement. Moving to such a place for your golden years is one of the most efficient ways to pull it off only with Social Security benefits in retirement. “According to the Bureau of Labor Statistics, the annual cost of living in Birmingham, Alabama, is $33,219, and the average price of a home in that city [in 2018] is $65,100, or about the same as a 10% down payment on the average single-family dwelling in parts of Seattle,” says Kellerman of Phase 2 Wealth Advisors.

Of course, before you decide to relocate, make sure you know everything there is to know about the place you intend to spend your golden years in. Apart from the cost of living, check out the prices for housing, groceries, utilities, transportation, health care and other things important for you. Also, read these 10 Do’s and Don’ts You Have to Consider Before Moving During Retirement.