3 Expenses Retirees Have Cut Back On in the Past Year as Prices Skyrocket

GOBankingRates conducted a spending and saving survey that asked, “What spending/saving habits have you had to change in the last year due to inflation/rising prices?” The survey respondents were 18 and older, including retirees 65 and older. Based on the survey results, here are the top three expenses retirees have cut back on this past year to combat rising prices — and a few tips for finding savings in each category .

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3 Expenses Retirees Have Cut Back On as Prices Climb

Unsurprisingly, the survey results show that people of all ages are cutting their budgets to find financial relief. The Consumer Price Index (CPI), which measures inflation, was up 3% in June 2024 from June 2023. This rate is far better than the inflation rates of 2021 and 2022, but it means consumers aren’t yet getting much financial relief from climbing prices. Some 31% of respondents 65 and older reported, “I have not had to change any of my spending habits.”

Less than 10% of respondents aged 65 and older reported cutting back on utilities and housing. Here are the top three areas where retirees are cutting back to fight inflationary prices and the percentage of survey respondents in the age bracket who reported making cuts.

1. Food: 49%

Almost half of all respondents aged 65 and older reported cutting food costs this past year. The food category had the highest number of respondents reporting cuts across all age groups except those aged 35 to 44, who reportedly trimmed entertainment costs slightly more than food costs. However, a lower percentage of the oldest age group surveyed reported food cost cuts than other age groups.

The CPI for food continues to increase, even if only slightly. Although the increase from May 2024 to June 2024 was only 0.02%, food prices were 2.2% higher in June 2024 than in June 2023.

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Tips for Cutting Food Costs

CPI data shows restaurant purchases have had more significant price increases over the past year than grocery store purchases, so cutting back on eating out and ordering in instead may help you find the greatest food savings.

Beef prices have been climbing for the past four months and are predicted to continue rising this year. Consider eating more poultry and seafood or protein alternatives such as beans and legumes to keep grocery bills in check.

Another easy way to reduce grocery bills is to prevent food waste. Tracking food expiration dates, using proper food storage techniques and meal planning around leftovers can help you minimize the amount of food that goes into the trash.

2. Entertainment: 41%

Many respondents are also cutting a bit of fun from the budget to make ends meet. Only the 18- to 24-year-old group had fewer respondents cutting back on entertainment than those 65 and older.

Tips for Finding Affordable Entertainment

If you’re retired, you may regularly engage in leisure activities to stay busy and connected, but that doesn’t mean you need to spend a lot of money. With some creativity, you can still have fun while keeping your budget intact.

Community theater and minor league sporting events may fit your budget nicely, especially if the venues offer discounted tickets for seniors. If you consider your streaming services part of your entertainment budget, replace some paid ones with free options, such as Pluto or Tubi.

3. Vacation: 31%

Slightly less than one-third of survey respondents in the 65 and older age group are cutting back on travel. Only those 18 to 24 reported fewer travel budget cuts.

Budget Travel Tips

If you no longer have to plan vacations around a work schedule, off-season travel may help you save. Although the pandemic may have changed the costs for off-season travel to some popular destinations, you can research locales that are less popular you might enjoy.

Also, take advantage of the one perk younger generations don’t get when traveling: the senior discount. Whether it’s a discount on train travel, a museum tour, a national park visit or some other vacation activity, don’t forget to ask about senior savings.

Methodology: GOBankingRates surveyed 1,023 Americans aged 18 and older from across the country between June 13 and June 24, 2024, asking 12 different questions: (1) How much do you currently have in savings?; (2) What spending/saving habits have you had to change in the last year due to inflation/rising prices? (select all that apply); (3) Are you currently enrolled/participating in your employer’s 401(k) program?; (4) How much have your overall expenses gone up in the past year?; (5) How much money do you think you’ll need in retirement?; (6) How much do you spend or expect to spend monthly during your retirement?; (7) Do you invest your money? If so, what do you invest in? (Select all that apply); (8) What do you spend the majority of your money on, aside from housing (rent/mortgage)?; (9) Approximately, how much debt of all types (e.g., student, credit card, mortgage, auto, etc.) do you have?; (10) Do you currently have any form of an emergency fund?; (11) If you faced an emergency (medical, housing, etc.), how would you have to pay for it?; and (12) How much do you spend on groceries per month? Which of the following fast-food chains do you feel provides the best value? GOBankingRates used PureSpectrum’s survey platform to conduct the poll.

This article originally appeared on GOBankingRates.com : 3 Expenses Retirees Have Cut Back On in the Past Year as Prices Skyrocket