Retirement looks very different today than it did a generation ago. Higher prices and longer lifespans mean fewer people can rely on traditional savings alone. Many are finding new ways to stretch their money or redefining what retirement actually means. Here are nine creative ways people are making it work.
Renting Out Rooms
Many retirees are turning their homes into income sources. Renting out a spare room or basement suite helps cover living expenses without requiring a full-time job. It also offers companionship and a steady cash flow. Home-sharing platforms have made this option easier than ever.
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Moving Abroad
Some Americans are retiring overseas to cut costs. Countries like Mexico, Portugal, and Costa Rica offer lower living expenses and affordable healthcare. Moving abroad can make limited savings stretch much further, though it requires planning and adaptability.
Taking on Part-Time Work
Retirement doesn’t always mean the end of work. Many older adults are picking up part-time or seasonal jobs for extra income and social engagement. Flexible roles such as tutoring, pet sitting, or consulting provide structure without the stress of a full career.
Downsizing Homes
Selling a large family home and moving into a smaller one is one of the most effective ways to free up cash. Downsizing reduces maintenance costs, taxes, and utilities. Some retirees even opt for tiny homes, condos, or 55-plus communities to simplify life and save money.
Delaying Social Security
Waiting to claim Social Security benefits increases monthly payouts. While it requires patience and other income sources in the meantime, the long-term benefit can be substantial. Many people are strategically delaying until age 70 to maximize what they will receive each month.
Starting Small Businesses
More retirees are turning hobbies or skills into small businesses. From selling handmade crafts online to offering consulting services, entrepreneurship provides both income and purpose. It is a flexible way to stay busy while improving financial security.
House-Sitting and Traveling
Some retirees are cutting living costs by house-sitting. In exchange for caring for homes or pets, they stay for free in desirable locations. This lifestyle combines adventure with affordability and helps reduce housing costs significantly.
Living with Family
Multi-generational living is becoming more common. Retirees moving in with adult children, or vice versa, helps everyone save. Shared housing reduces expenses and strengthens family connections, making it a practical and emotional win.
Embracing Frugality
Many retirees are returning to simple living. Cooking at home, shopping secondhand, and avoiding unnecessary expenses help stretch limited budgets. Frugality is not about deprivation. It is about being intentional with money to gain peace of mind.
Retirement Looks Different Now
These days, retirement looks very different than it used to. People focus less on luxury and more on freedom and stability. Many are finding practical ways to stretch their savings without giving up what they enjoy. It’s about living comfortably within your means and feeling secure about the future.
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The article 9 Surprising things people are doing to afford retirement first appeared on Cents + Purpose.