Medically reviewed by Jocelyn Hermanson MSN, RN, COC, CPC, CRC

When the working years end and retirement begins, older adults face a new chapter in life. While no two paths may look the same, one reality exists for many seniors, and that’s how to budget on a fixed income. In 2025, the average monthly social security income was $2,006.69, varying according to personal circumstances like retirement age and working income.¹

Budgeting for seniors is a priority for many households. If budgeting isn’t your favorite task, let’s take a closer look at helpful tips to help you get your house’s finances in order.

Know your income

You can’t create a budget or manage money better if you don’t start with the basics. It’s nearly impossible to manage money or set a budget without knowing your income, or the amount of money received on a regular basis. For most seniors, income is a fixed amount, like a social security payment. Start by making a list of all your sources of income.

Basic tip: What is income? Money from pension, social security, rental properties, investment accounts, dividends, or family support.

What are you spending?

If you’re not tracking expenses regularly, overspending can become a common problem. Another helpful and necessary step is to list all of your expenses. Start with all of the fixed expenses in your household, like an electric bill or monthly health insurance premium. If you’re able to estimate variable expenses like groceries or entertainment, be sure to capture those, even if the number isn’t exact.

The idea is to get a realistic picture of the money spent during the month. Further analysis could include those expenses that are essential and those that fall into the “want” vs. “need” category.

Look for hidden, forgotten budget drains

Seniors aren’t alone when trying to find wasted money. Start with the expenses that may be hidden like unnecessary fees, subscriptions like an unused streaming service, and any automatic withdrawals from accounts that could be stopped or managed differently.

What’s your debt load?

Everyone carries debt from time to time, especially during growth years like when starting a new job, growing a family, or buying a home. Seniors, however, aren’t immune to debt. In fact, one in five seniors is carrying debt specifically related to medical bills.²

What should you do if you’re an older adult with debt? First, educate yourself about debt and your rights as an older adult. Identify the kind of debt you have and ask for help managing it, whether from a family member or trusted advisor. Asking for help and recognizing you’re not alone can help alleviate stress about your situation.

Review policies and prescriptions

Take time to list all of your out-of-pocket expenses related to insurance policies, taxes, medical coverage, and prescriptions. If it’s been a while since you’ve shopped rates or policies, it’s a good idea to compare costs. Can you find a more competitive rate for your homeowner insurance? Have you taken time to shop for prescription coverage? Expenses paid yearly or quarterly can be overlooked or set on autopay over time, so shopping for a better deal may help put money back in your pocket.³

Simplify or downsize

At every age, life looks different. For seniors whose lifestyle may have changed due to a move or death, it may be time to re-evaluate your entire living situation. Is it time to sell the big house and take advantage of the equity? Are you driving less and finding it’s time to sell a second car? While the car may be paid for, remember all the extra expenses like gas, insurance, and repairs that come with car ownership.

H2 Phones and technology

Phones aren’t what they used to be at all. Owning a phone or tablet can be an expensive proposition these days. Take a hard look at your phone plan and usage. Is there a way to save money here? Do you need the latest version, or can you manage with an older phone or more limited plan? Shop plans, companies, and prices to see if you’re getting the best deal, you can as a senior.

Dig for discounts

Are you taking advantage of senior discounts? If not, start by looking at those offered at restaurants and throughout your local community. Is it worth joining a senior advocacy group or association to access discounts on anything from state parks to entertainment or food? Small discounts can add up if used regularly.⁴

Any senior or older adult can learn how to budget on a fixed income. Even if you’re in debt or feel scared about your financial situation, it’s never too late to ask for help and find peace. If you’re skipping meals or medicine or paying too much for a phone, maybe it’s time to sit down and set up a budget to fit your current lifestyle and needs.

At CenterWell Senior Primary Care, our doctors and care teams are concerned with your whole well-being, from your physical health to your emotional health. If you’re looking for a primary care center that understands the challenges unique to seniors, contact a center nearest to you.

Disclaimer:

This content is for informational purposes only and is not intended as professional advice. For personalized guidance, we encourage you to consult a qualified professional.

Sources:

• “The Average Social Security Check by Age,” ,Kiplinger, last accessed September 23, 2025, https://www.kiplinger.com/retirement/social-security/what-is-the-average-social-security-check-by-age#:~:text=How%20much%20do%20they%20receive,benefit%2C%20and%20your%20marital%20status,
• “Debt Collection: What Older Adults Need to Know,” National Council on Aging, last accessed October 12, 2025, https://www.ncoa.org/article/debt-collection-what-older-adults-need-to-know/
• Barbara Field, “9 Helpful Tips for Building a Budget on a Fixed Income,” Seniorliving.org, last accessed September 23, 2025, https://www.seniorliving.org/finance/budgeting/
• “Money Matters: Top 10 Budgeting Tips for Older Adults,” National Council on Aging, last accessed October 12, 2025, https://www.ncoa.org/article/money-matters-top-10-budgeting-tips-for-older-adults/