5 Ways To Live Without a Car in Retirement To Save Money

Retirement should be a time of discovery and rejuvenation for the 30.4 million Americans about to leave the workforce within the next six years. Sadly, it is more often associated with financial burden. According to a study by the Retirement Income Institute and the Alliance for Lifetime Income, neary two-thirds of new retirees are not financially prepared for this new stage of life.

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As new retirees look to cut corners in their spending, perhaps they should be looking at ditching their car. The American Automonile Association puts the yearly estimate of owning a car at over $12,000 — a prohibitive expense for the half of Americans relying primarily on Social Security.

Plus, aging can have an adverse affect on driving and vice versa. In the event that a retiree is forced to give up their car, it’s better to live somewhere that makes living without a car sustainable.

Here are some options for transitioning to a car-free lifestyle with financial benefits .

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Invest in an E-Bike

Approximately half of car trips in America clock in at five miles or less, according to the Federal Highway Adminstration — distances that can easily be covered by an e-bike. Though still an investment, a good e-bike costs upwards of $1,000, which is considerably less than a car. Plus, e-bikes don’t come with the costs of insurance, fuel and taxes that make driving unaffordable. For trips that demand carrying a haul, like grocery shopping, cargo e-bikes are a good bet. Though pricer, it’s still possible to get a good cargo e-bike for around $2,000.

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Embrace Public Transport

Contrary to popular belief, good public transit isn’t just a perk of big cities. Many smaller regions have started to invest in buses, trains and trolleys. What’s more, there is a growing movement in America of providing zero-fare options to residents. Kansas City was one of the first urban areas to drop bus fares 2019, instigating a fare-free movement that is spreading across the country.

Move to a 15-Minute Neighborhood

The easiest way to exist without a car is to live within walking distance of everyday essentials — be it groceries, the local community center or the gym. Walking is not only easier on the wallet, the health benefits can equal a lifetime reduction in medical bills. According to Harvard Medical School, regular walking could save Americans $100 billion in healthcare costs.

For Long Trips, Car Share

Ditching your automobile doesn’t mean never setting foot in a car again. Car-sharing services , like Zipcar or Uber, are invaluable for journeys that are just that bit too long for biking or walking. While these do come with a cost, they are a fraction of the cost of owning a car. Plus, some services, like Zipcar, cover fuel, making car sharing a more affordable option.

Explore Subsidies

More states are starting to incentivize public transportation and e-biking with subsidies, tax incentives and rebates. The Los Angeles Department of Transportation, for example, offers residents $1,800 in subsidies for using public transport. Even private companies are getting in on the act. Uber recently announced its One Less Car Challenge , offering participants $1,000 to give up their car.

Adopting a car-free lifestyle can seem like a big change. But with the right planning, it can not only cut costs and elongate retirement savings, it can drastically improve your quality of life at a time when every year counts.

This article originally appeared on GOBankingRates.com : 5 Ways To Live Without a Car in Retirement To Save Money