13 Ways to Stick to Your Retirement Budget in 2025

5. Set and stick to a spending limit

Alev advises that after you have figured out all of your essential costs, you add up to 20 percent for things that include unexpected costs, savings and paying down existing debt. She generally recommends a budget that designates 50 percent toward essentials, 30 percent for “wants” and 20 percent for unexpected costs.

6. Limit credit card debt

Six out of 10 Gen Xers (ages 44 to 59) and nearly half of boomers (ages 60 to 78) carry a credit card balance from month to month, according to a Bankrate study. Interest can add up quickly, with the average credit card rate clocking in at 24.43 percent as of Dec. 19, 2024, according to a LendingTree study of over 200 credit cards. 

The biggest financial trap that older Americans typically get into is using their credit cards as supplemental income, Graham says. “If you use your credit card, make certain you have the funds available to pay it off at the end of the month,” he says.

7. Put bills on autopay

To avoid missing any bill payments and harming your credit score, consider putting your recurring bills on autopay, Alev recommends. This includes utility and Internet bills, as well as bills for auto, home and life insurance. Virtually every bank has a customer service line that can walk you through how to set up autopay, she says. Set up the autopay for at least five days prior to the bill’s due date, she suggests.

8. Freeze your credit

With so many financial scams targeting older Americans, many financial experts recommend placing a hold, or "freeze," on your credit with each of the three major credit bureaus: Equifax, Experian and TransUnion. A freeze will stop any fraudsters from opening credit cards or other credit accounts in your name, Alev says, safeguarding your credit score.

A security freeze doesn’t completely block access to your credit history. Your existing lenders can still access it, and so can employers, landlords and insurance companies if you’re seeking a job, trying to rent an apartment or applying for a new insurance policy.

9. Plan for unexpected health care costs

Unexpected health care costs are where most older Americans fail in setting up annual budgets, Graham says. So it’s critical to have ample emergency funds put away specifically for unpredictable health care expenses, he says.

10. Trim your subscription services

Review what subscription services you are paying for monthly and then determine which ones you are actually using and which ones you can drop, Alev says. This includes everything from streaming services to gym memberships to newspapers and magazines. According to a 2024 YouGov survey, more than half of U.S. adults are paying for subscriptions they don’t use.

11. Review your insurance policies

The National Council on Aging encourages older consumers to review their insurance plans annually. Many insurance providers offer "senior" discounts, as well as “paperless” discounts for enrolling in online billing, Waterman says. It's also worth shopping around to compare quotes, she adds.

12. Order takeout less often

Americans order delivery 3.7 times a month on average, spending roughly $1,566 annually. Depending on your habits, reducing how frequently you order in could help lower your expenses significantly. “A couple of extra food deliveries per month can almost double your food budget,” Alev says.

13. Leverage “senior” discount programs

Older folks pass up potentially hundreds of dollars in savings every year by failing to take advantage of special discounts for older consumers. Many grocery chains offer them, Waterman says. For example, on Thursdays, through its Club 60 program, Harris Teeter offers VIC card members age 60 and up discounts of 5 percent. A number of major retailers, such as Kohl's, Michaels and PetSmart, also  offer discounts to older customers.