Most retirees live on fixed incomes, which means they have to keep a close watch on their spending all year round. But it’s especially important during the winter months because of holiday costs, high heating bills and rising prices on certain grocery items.
In 2024, many seniors are still struggling to deal with the effects of high inflation, even as the overall inflation rate continues to drop. A new survey from the Employee Benefit Research Institute (EBRI) found that nearly one-third (31%) of retirees said their spending is higher or a little higher than they can afford in 2024. That’s up from 27% in 2022 and 17% in 2020.
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If you’re a retiree worried about tight finances in the coming months, here are five expenses to cut ahead of this winter.
Retirees should also make some room in their budget for these expenses this winter season.
Heating Bills
The National Energy Assistance Directors Association estimates that prices for home heating this winter will rise by about 10.5% from last winter due to colder weather in the Northeast and Midwest.
The projected U.S. average on heating bills this winter is $982 versus $889 last winter — an increase of nearly $100.
Rather than watch your heating bill go, you should cut your costs by taking certain steps even before winter hits. Here are some tips from The Spruce:
- Program your thermostat to slightly lower temperatures overnight or when the house is empty. You can set the temperature higher during other times.
- Close the doors to unused rooms so warm air gets directed to where it’s needed the most. Also, close heating vents in unused rooms.
- Lower the thermostat when you’re cooking and let the appliances warm the kitchen and surrounding areas.
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Electricity Bills
As with your heating bill, you should take steps to cut your electricity bill ahead of winter. The easiest way to do this is by cutting your light usage.
Using LED lights is one way to lower you power bill. Another way is to use lighting timers — especially during the holiday season, when you might have decorative lights indoors and outdoors. A lighting timer allows you to turn all lights off when you’re not home or they’re not needed.
Food and Groceries
Grocery costs for seniors have more than doubled over the last decade in some parts of the country, according to a study from GOBankingRates.
Seniors in all 50 states are spending thousands of dollars more a year now than they did in 2013. You can offset these higher prices by purchasing generic and store-brand goods rather than name-brand goods. You should also avoid expensive items, such as the priciest cuts of meat.
Another good step is to stock up now on items that tend to go up in price during the winter. These items include meats, baking essentials, fresh produce and spices.
Buying them now means you’ll save money versus what you’d pay during the dead of winter.
Credit Cards and Holiday Spending
According to the EBRI, 68% of retirees this year reported having outstanding credit card debt, up from 40% in 2022 and 43% in 2020.
The first thing you should do is pay down any outstanding debt to avoid interest charges. Next, make it a point cut your credit card spending ahead of the winter.
If you don’t have the money to pay for holiday gifts or other non-essential items, then forgo them. Handmade cards or gifts are one option. You could also regift items you have around the house that you haven’t used.
Travel
The biggest travel expense during the cold months typically involves holiday trips. Last year, more than one-quarter of consumers surveyed by GOBankingRates said they planned to spend over $1,000 on holiday travel.
Even though it’s nice to see family and friends during the holidays, you should cut out this expense ahead of winter if you don’t have the funds. Instead, have loved ones come visit you, or make use of video calls or other technology so you can at least see them digitally.
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This article originally appeared on GOBankingRates.com: 5 Expenses Retirees Should Cut Ahead of This Winter
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