Utilities

Best case scenario: by the time you’ve reached your retirement age, you’ve already paid off your mortgage or at least got 90% closer to achieving this goal. With the mortgage payments out of the way, you’ll be able to save thousands of dollars every year.

However, don’t go putting your money where your mouth is just yet. According to a study conducted by the Urban Institute, the average retired household spends surprisingly more each year on utilities than the average working household. It might seem weird but in truth, retirees spend more time at home, thus using their utilities more.