1. Understand Your “Longevity Budget”
Most people underestimate how long they will live — and that makes it easy to underestimate how much savings they’ll need.
A longevity budget simply means planning for a retirement that may last:
20+ years if you retire at 65
30+ years if you retire earlier
Longer if you have good health, family longevity, or strong medical care
Tip: Instead of thinking year-by-year, think in decades. Planning for the long term helps you make better decisions today.
2. Know Your Monthly “True Cost of Living.”
Your savings will last much longer if you truly understand what you spend today — and what you’ll likely spend in the future.
Break expenses into 3 categories:
A. Fixed Necessities
Housing (rent, mortgage, taxes)
Utilities
Groceries
Insurance premiums
Transportation
Medical costs
B. Variable Lifestyle Expenses
Dining out
Travel
Hobbies
Subscriptions
C. Unexpected Costs
Medical surprises
Home repairs
Car issues
Helping family members
Tip: If you haven’t reviewed your expenses in the last 6–12 months, this is the single most important step you can take.
3. Use a Safe Withdrawal Strategy
The goal is simple: don’t take out more than your savings can support.
The most common rule is the 4% rule:
You withdraw roughly 4% of your investments in year one, then adjust for inflation each year after.
This gives your money the best chance of lasting 30 years or more.
If you want to be even safer:
Consider 3–3.5% withdrawals
Adjust spending slightly downward in years when the market is down
Work with a retirement planner (even for one session)
Tip: If your withdrawals are higher than 5–6%, your savings may run down faster than you want.
4. Reduce “Silent Budget Killers”
Many people don’t know where their money is slipping away. Over time, small leaks add up.
The biggest hidden drains for seniors:
High-interest debt
Cable packages
Phone plans
Subscription apps
Unused memberships
Insurance policies that aren’t optimized
Paying for services that programs will cover (e.g., food assistance, utility help)
Tip: Evaluate these once per year and renegotiate or eliminate what you don’t truly need.
5. Prepare for Unexpected Expenses Before They Happen
This is the key to long-lasting savings.
Set aside a “Retirement Emergency Fund” for life’s unexpected moments.
Even $1,000–$3,000 in a separate account:
Reduces stress
Prevents you from touching long-term savings
Protects you from debt
Tip: Automatically move $20–$50 per month into this account — small, steady amounts work surprisingly well.
6. Use Programs Designed to Help Seniors Save Money
Millions of seniors don’t realize they qualify for savings programs that reduce major costs like food, utilities, prescriptions, and medical co-pays.
These programs can extend your savings significantly.
Examples include:
SNAP (help with groceries)
Medicare Savings Programs (help with premiums & co-pays)
Lifeline (discounted phone/internet)
LIHEAP (utility bill assistance)
Property tax rebates (available in many states)
Nonprofits that help with dental, vision, and prescriptions
Your newsletter could include a “state-by-state resource list” in future issues.
7. Get Proactive About Medical Costs
Healthcare is often the #1 expense for retirees — even those with Medicare.
Seniors should:
Review Medicare or Medicare Advantage annually
Ask doctors about generic prescriptions
Use preferred pharmacies
Check if they qualify for Extra Help (a major prescription savings program)
Use urgent care over emergency rooms when appropriate
Small changes can save hundreds per year.
8. Look for Ways to Add Supplemental Income (If Possible)
Many adults over 55 find part-time or passion-based income that helps offset costs without feeling like “work”:
Consulting or coaching
Freelance skills (writing, tutoring, crafting, etc.)
Gig work that fits your pace
Renting out a room or storage space
Selling unused items
Remote jobs for seniors
A little extra income can dramatically extend savings.
9. Reevaluate Your Plan Every 6–12 Months
Finances change. Health changes. Life changes.
Checking in on your plan just twice a year helps you stay in control and avoid surprises.
Your savings can last — even in uncertain times — if you use smart withdrawal strategies, understand your expenses, and take advantage of programs designed to help older adults.
You don’t need to overhaul your entire lifestyle.
A few small adjustments can protect decades of financial security.
With care,
Mike Bridges
Founder, The O55 Report