10 Tips for Seniors on Fixed Income to Help Save Money

The math on a fixed income got harder this year, not easier. The 2026 cost-of-living adjustment raised the average Social Security retirement check by about $56 a month — and the standard Medicare Part B premium took $17.90 of it right back, climbing to $202.90 a month. What is left meets grocery, utility, and insurance bills that did not get the memo about your raise.

Debt now follows people into retirement in a way it did not when I started in this business. Harvard’s Joint Center for Housing Studies reports that 41% of homeowners age 65 to 79 still carried a mortgage in the latest data, up from 24% in 1989, with a median balance of $110,000. Add a car payment or a credit card, and an income that once felt adequate starts to feel thin.

Here is what 45 years in mortgage banking has taught me about this squeeze: you close the gap from both ends. You trim what goes out, and you claim what you are owed — and most people only ever work the first end. Older adults leave an estimated $58 billion in benefits unclaimed every year. The ten tips below work both ends.

4 Ways to Save Money on Essentials

1. Reduce Your Utility Bills

Two federal programs do the heavy lifting here, and both go underused. The Low Income Home Energy Assistance Program (LIHEAP) helps pay heating and cooling bills and can step in during a shutoff emergency — your utility company can point you to your state’s application. The Weatherization Assistance Program sends a crew to seal, insulate, and tune up your home at no cost if you qualify, and the Department of Energy puts the average savings at $372 or more every year — savings that repeat every year after.

The free habits still matter, too:

• Keep the thermostat closer to the outdoor temperature and lower the shades on summer afternoons
• Run the dishwasher and washing machine only when full, on the quickest setting that does the job
• Water the lawn less, or catch rainwater in a storage barrel for the garden

One correction from earlier versions of this article: the federal solar tax credit for homeowners is gone. The IRS confirms the Residential Clean Energy Credit ended for any system placed in service after December 31, 2025. State and utility incentives still exist in many areas, so get the payback math in writing before you sign a solar contract — and walk away from any salesperson who claims the federal government still pays 30%.

Related reading: How homeowners pair reverse mortgages and solar panels →

2. Get Help With Healthcare Costs

If your income is limited, a Medicare Savings Program is the single most valuable phone call on this list. These state-run programs pay the $202.90 monthly Part B premium for people who qualify — about $2,435 a year added straight back to your Social Security check — and the QMB level wipes out Medicare deductibles and copays as well. The 2026 federal income limits run from roughly $1,350 to $1,816 a month for an individual, higher for couples, and states count income differently. Apply even if you think you are slightly over.

Two more programs stack on top. Extra Help, through Social Security, lowers prescription drug plan premiums and copays. And every drug plan now carries a hard ceiling: once your out-of-pocket prescription spending reaches $2,100 in 2026, you pay nothing more for covered drugs the rest of the year, and the Medicare Prescription Payment Plan can spread that cost across the calendar instead of taking it all in one month.

You do not have to sort any of this out alone. Your State Health Insurance Assistance Program (SHIP) provides free, unbiased, one-on-one Medicare counseling — call (877) 839-2675.

Don’t get caught out: Reverse mortgage proceeds are loan advances, not income — but large sums left sitting in the bank can affect needs-based benefits. Learn how reverse mortgages interact with Medicaid and SSI benefits →

3. Cut Your Grocery Bill Without Cutting Meals

Start with SNAP. More than half of eligible adults 60 and older never enroll, walking past an average of about $188 a month for older households. Special rules for people 60 and older let you deduct out-of-pocket medical costs when your benefit is calculated, so apply even if you assume your income is too high.

Two USDA programs are built specifically for people 60 and older: the Commodity Supplemental Food Program provides a free monthly food package, and the Senior Farmers Market Nutrition Program issues vouchers for fresh produce at farmers markets and roadside stands. Food banks fill the gaps in between — the Feeding America locator finds the nearest one by ZIP code, no paperwork required.

And a correction worth making plainly: Original Medicare does not pay for groceries. Some Medicare Advantage plans offer a grocery allowance to members with qualifying chronic conditions — read the plan documents before you believe a television ad promising free food.

4. Pay Less to Get Around

Here is a rule most riders have never heard of: any fixed-route transit system that accepts federal money — and nearly all of them do — cannot charge you more than half the peak fare during off-peak hours if you are 65 or older, have a disability, or simply show a Medicare card. Ask your transit agency for its reduced-fare ID.

For the trips a bus cannot cover, call or text the Eldercare Locator at (800) 677-1116. It is a free federal service that connects you to your Area Agency on Aging, county ride programs, and volunteer driver networks for medical appointments and errands. The same churches and senior centers that run meal programs often run rides — and if your household still insures two cars, ask honestly whether it needs both.

4 Money-Saving Housing and Lifestyle Moves

5. Lower the Cost of the Home You Already Own

Before you shop for cheaper housing, make the housing you have cheaper. Nearly every state offers property tax relief to older homeowners — exemptions, freezes, or deferrals — and much of it goes unclaimed because nobody applies. One call to your county assessor’s office tells you what you qualify for and the filing deadline.

Reshop your homeowners insurance at every renewal; loyalty has been expensive these past few years. Bundle policies, raise deductibles you could actually cover, and ask directly for retiree discounts.

If the numbers still do not work, subsidized apartments for older adults exist in nearly every county, with rent tied to your income. Waiting lists run long, so get your name on them early — your local housing authority, the Eldercare Locator, or dialing 2-1-1 will surface every option in your area.

6. Enjoy Leisure That Costs Little or Nothing

Senior centers earn their keep: hot meals, exercise classes, and company, at little or no cost. Many Medicare Advantage plans include a free gym membership through programs such as SilverSneakers — if you pay for a gym out of pocket, check your plan benefits today, because you may be buying something you already own.

The America the Beautiful Senior Pass remains the best entertainment bargain in the country: $20 a year, or $80 once for a lifetime pass, admits anyone 62 and older — plus everyone in the vehicle — to every national park and federal recreation site. Your library card is worth more than most people realize: books, movies, museum passes, and free classes. And community colleges in most states waive or discount tuition for older students.

7. Consider Downsizing — but Do the Math First

Downsizing works when the house is too big, too costly, or unsafe to age in. Run the numbers before you call the moving truck: with the median existing home selling for $440,600 as of June 2026, the smaller home often costs more than sellers expect once closing costs, moving expenses, and any HOA fees are counted.

If you do move, homeowners 62 and older have a tool most real estate agents never mention: the reverse mortgage for purchase, which lets you buy the next home with a down payment of roughly half the price and no required monthly mortgage payment on the rest. You remain responsible for property taxes, insurance, and upkeep — and the savings from a right-sized home compound every month after.

8. Make a Budget and Stick to It

A budget on a fixed income has one job: guaranteeing the essentials are covered before anything else spends the money. Three rules I give people:

• Claim assistance first. Run a free BenefitsCheckUp search and apply for everything you qualify for — housing, heat, food, and healthcare help — before allocating a single dollar of your own.
• Take care of needs before wants. Housing, utilities, food, and medications come off the top.
• Give leisure its own line, and spend it without guilt — a budget with no pleasure in it gets abandoned by March.

Put recurring bills on autopay and review the statements monthly. Late fees are the emptiest expense there is.

2 Ways to Protect Your Long-Term Financial Security

9. Put Your Biggest Asset to Work — Carefully

For most households on a fixed income, the home is the largest asset and the debt against it is the largest bill. Attack the expensive debt first: the average credit card rate stands near 21% by Federal Reserve data, and paying off a balance at that rate is a guaranteed 21% return. No investment matches that safely.

For homeowners 62 and older, a reverse mortgage can convert equity into monthly breathing room: eliminate the required principal-and-interest payment on your existing mortgage, or establish a line of credit that grows over time and cannot be frozen. You remain responsible for property taxes, insurance, and upkeep, and the right structure depends on what the money needs to do — compare the reverse mortgage payment options side by side.

And hear me clearly on one thing, because it guards against the scam category that costs older Americans the most: your home’s equity is for reducing expenses and creating security, not for chasing returns. Anyone who suggests you borrow against your home to buy an investment, an annuity, or cryptocurrency is describing a strategy that serves them, not you. Walk away.

If you want to add income rather than cut costs, the Senior Community Service Employment Program places workers 55 and older in paid part-time community positions with training built in — and once you reach full retirement age, wages no longer reduce your Social Security benefit.

Expert Insight: “I tell every borrower the same thing: a reverse mortgage is for making retirement cheaper or safer — never for funding an investment somebody is selling you. That one rule would save people more money than every coupon ever clipped.”

New to reverse mortgages? Start with our complete guide to how they work →

10. Treat Scam Defense Like Part of Your Budget

The FBI’s Internet Crime Complaint Center logged $7.7 billion in reported losses from Americans 60 and older in 2025 — up 59% in a single year, with an average loss of $38,501. Investment schemes, most of which involved cryptocurrency, took in the most money. Tech support scams and phishing reached the most people, and reports of government impersonation nearly doubled. Four rules block nearly all of it:

• Contact you did not start is the risk. Hang up and call back at the number on your card, your statement, or the official website — never the number the caller gives you.
• No legitimate business or government agency demands payment by gift card, wire transfer, or cryptocurrency ATM. That demand is the scam, every time.
• A voice can be faked. Computer-cloned voices now power “grandchild in trouble” calls. Agree on a family code word, and verify by calling the person back at their own number.
• Urgency is the tell. “Right now, and don’t tell anyone” is exactly when you stop, hang up, and tell someone.

Your bank will never call asking you to move money to a “safe account” — that call is a thief with a script. If something slips through, report it the same day to the National Elder Fraud Hotline at (833) 372-8311 and at ic3.gov. Fast reporting is your only realistic shot at recovering funds, and there is no shame in making that call. These operations are professional and good at what they do.

Don’t Be Afraid to Ask for Help

The most expensive mistake on a fixed income is managing it alone. Three free calls put a professional in your corner: BenefitsCheckUp finds every assistance program you qualify for in minutes, the Eldercare Locator at (800) 677-1116 connects you to your Area Agency on Aging, and a SHIP counselor at (877) 839-2675 untangles Medicare at no charge. Bring family into the big decisions — a second set of eyes catches what tired eyes miss.

And if you are a homeowner 62 or older weighing whether your equity belongs in the plan, start with education, not a sales pitch. Learn how reverse mortgages work and how to compare reverse mortgage lenders before anyone asks for a signature.

Frequently Asked Questions

Every tip above widens the gap between what comes in and what goes out — and, when combined, they are worth thousands of dollars a year to the household that claims them.

Is Your Home Part of the Answer? If you are 62 or older, run your numbers with our reverse mortgage calculator to see what your equity could do for your monthly budget, or call us Toll-Free at (800) 565-1722. We will lay out every option in plain English, and the decision is yours.