Cutting Expenses in Retirement? Think Twice Before Cutting These 5 Things

The average U.S. consumer who’s 65 or older spends $55,064 a year, as per the latest Bureau of Labor Statistics data. That’s about $4,589 per month. Of course, this includes everything from food and transportation to housing and entertainment. Some people spend much less than this, while others spend more.

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If you’re on the verge of retirement , you might be thinking about ways to cut expenses and stretch your retirement funds. While it’s generally good to get rid of certain bills, like mortgage or auto loan payments, others are often worth keeping.

These are some of the top expenses that you might want to keep in retirement, and why .

Healthy Food

Food can be expensive, but while it might be wise to limit how often you dine out — or skip the apps and drinks — you shouldn’t skip the healthy foods.

“Unhealthy food is a big preventable risk factor for poor health, so cutting out more expensive fresh fruits, vegetables and meats in favor of less healthy processed foods isn’t a great idea,” said Todd Stearn, founder and CEO of The Money Manual .

If you’re worried about money, there are ways to reduce costs while still getting high-quality, healthy food.

“Try to save money by building your meals for the week around the sales your grocer advertises in their circular or online,” Stearn said. “Also, consider comparing prices on the items you buy regularly with other nearby grocers if you haven’t in a while.”

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Physical Fitness

Keeping up with your physical fitness is important at any age, but possibly more so in your later years. Not only will it keep you active, but it can also keep you healthy. How much you spend on physical fitness depends on your needs and preferences, but you might want to think twice before cutting out this expense altogether.

“Physical fitness is also key to enjoying your retirement years and minimizing your medical expenses. If you have a gym membership that you actually use, try not to give that up to save money,” Stearn said. “You’re likely killing two birds with one stone there: fitness and socializing. But do look into whether you can find a more affordable gym and/or get a discount through your insurance or another senior program.”

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Social Ties

Retirement can be an exciting new stage in life. But unless you prefer solitude, it can also be less fulfilling if you cut out those social ties.

“Keep your social ties! I have found in my practice that it is so important to keep your social ties in retirement and remain involved in a community of some kind,” said David Seery, CFP®, a financial advisor with Forum Financial Management, LP . “This provides social and cognitive stimulation that is invaluable.”

You don’t have to spend a ton of money to keep an active social life.

“There are also plenty of ways to maintain social ties without spending a lot of money,” Seery said. “Some of my clients play mahjong at the local senior center, join a walking group in the mornings, volunteer at the local food bank, play pickleball or tend to the garden. Retirement does not have to mean cutting all social ties entirely in order to save money.”

Hobbies

Similarly, you might want to keep some of your favorite hobbies in retirement — or else find new ones. Even if they cost a bit of money, as long as you can afford them, they’re bound to bring you much greater fulfillment.

“It is OK to spend time or even money on a hobby as that social activity is good for the mental and physical well-being of retirees,” Seery said. “There may be ways to shave the dollars spent on a particular hobby or social activity, but it should not be eliminated altogether.”

Look into local or community activities. Or pick up hobbies that don’t require a ton of new equipment or classes to get started. If you qualify for senior discounts, take advantage of those, too, as they’ll save you even more.

Your Living Space

If you’re ready to downsize — not just financially but emotionally — then go for it. Put your house on the market and move into a smaller one. Or relocate to a cheaper neighborhood or a community living space that works better for you.

But if you’re not completely prepared, you might want to hold off on this until you are. Otherwise, you could end up in a less desirable neighborhood, further away from loved ones (or your community), or lose out on valuable privacy. Weigh the costs and benefits before making any life-changing decisions.

This article originally appeared on GOBankingRates.com : Cutting Expenses in Retirement? Think Twice Before Cutting These 5 Things