Written by Carewell Team on Fri Apr 04 2025.
Retirement savings concerns are widespread: 3 in 5 retirees (60%) worry their savings won't last for the rest of their lives.
Nearly half of retirees (48%) are cutting back significantly on spending to stretch their savings.
To supplement their income, 1 in 2 retirees (48%) have taken on gig work or side jobs.
Medical emergencies (19%) are the top financial fear for retirees, followed by home repairs (17%) and long-term care (17%).
Retirees carefully balance their savings with everyday expenses, but many feel uneasy about their financial future. Some costs remain unavoidable, while others are too important to sacrifice, even in times of financial strain.
Over half of retirees (60%) weren't confident that their savings would last for the remainder of their lives. Unexpected expenses were a major concern, with medical emergencies (19%) topping the list of financial fears. Close behind were home repairs or maintenance (17%), long-term care or assisted living costs (17%), and major economic downturns (16%).
Looking back, many retirees regretted not saving more for day-to-day expenses, with 28% wishing they had set aside more for everyday living costs. However, some expenses were non-negotiable, no matter the budget.
Nearly 1 in 4 (24%) refused to cut back on hobbies and leisure activities, while 1 in 5 (20%) were unwilling to reduce spending on health and wellness, including gym memberships, organic food, and alternative medicine. Even in retirement, generosity remained a priority: 1 in 6 (17%) refused to stop buying gifts for family and friends.
Many retirees find themselves adjusting their spending habits to make their savings last. Whether by reducing discretionary expenses, finding new income streams, or relocating for a lower cost of living, seniors are taking creative steps to maintain financial stability.
Nearly 1 in 2 retirees (48%) have had to cut back significantly on spending since retiring. To save money, 75% meal-prepped and cooked at home, making it the most common cost-cutting strategy. Additionally, 1 in 7 retirees have relocated to a different city or state to lower their cost of living.
Finding ways to boost income was also a priority, with 48% of retirees taking on gig work or side jobs that require active effort, such as freelancing, contract work, or part-time jobs. Others were making sacrifices to reduce expenses — 28% have cut back on utilities like cable and internet, and 23% have delayed or avoided medical treatment to save money.
However, not all retirees have felt the need to make extreme adjustments: 21% said they haven't taken any drastic cost-cutting measures.
While some retirees actively worked to supplement their income, 34% generated passive income through consulting, monetized hobbies, or other ventures that require little ongoing effort. Meanwhile, 32% relied entirely on their existing retirement savings without making further investments.
To preserve their wealth, 24% said they keep their savings in low-risk options like CDs, money market accounts, and treasury bonds. Others took a more active approach: 22% invested in stocks or bonds, and 19% had a financial advisor managing their investments. A smaller number explored alternative strategies, with 6% investing in cryptocurrency and 6% in real estate or rental properties.
Technology was also shaping financial management, with 23% of retirees using AI digital tools and 14% specifically using ChatGPT to assist with retirement finances. Another 27% were interested in trying AI financial tools but haven't yet.
Yet, not all retirees saw a need for these technologies. A third felt like financial tech was unnecessary, and 23% preferred traditional banking or financial advisors. Other concerns included distrust in AI or digital security (16%), financial tools feeling too complicated (10%), and discomfort with learning new technology (5%).
Retirement presents financial hurdles, but seniors are proving to be resourceful in overcoming them. Many are adjusting their budgets, supplementing their income, and using financial tools to maintain stability. While concerns over savings persist, retirees are finding creative ways to balance security with enjoyment. By planning ahead and staying adaptable, they demonstrate that financial well-being in retirement is possible with the right strategies.
We surveyed 1,000 American retirees to explore how seniors balance budgeting with spending in retirement. The average age was 65; 67% of respondents were women, 33% were male, and 1% were non-binary. Due to rounding, certain percentages may not total 100.
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