6 Expenses Blended Families May Spend Less on in Retirement

For many blended families, the idea of retiring and reducing income can feel unsettling. Sometimes, it’s unsettling enough to keep us working longer than we need to. The truth is, retirement offers something incredibly valuable: time—arguably our most precious resource. How you choose to spend that time can greatly impact your success, both financially and emotionally, as you step into this next chapter.

While it’s true that retirement often means a reduction in income, it can also bring a reduction in spending, and for many, that’s a welcome surprise. Certain costs, like healthcare, travel, home maintenance, and inflation, can impact your retirement budget more than anticipated, but many of your regular expenses are likely to decrease. Here’s a look at what you might spend less on in retirement.

1. Work-Related Expenses 

If you work remotely, you’ve likely noticed the savings from staying home. If you work at an office or travel frequently,  these reductions can be even more significant. Without the daily commute, you’ll save on fuel, vehicle wear, parking, or public transit costs. You’ll also spend less on professional attire, no longer needing to maintain an office-ready wardrobe. Lunches out and coffees between meetings will be fewer, leading to savings on meals. And while professional development is still valuable, in retirement, you can pursue learning on your own terms, without the pressure of career demands.

2. Housing 

If you’ve lived in the same house for years—or recently combined households as a blended family—you may have fewer costly maintenance projects ahead. Once your mortgage is paid off or if you decide to downsize, you’ll free up a significant portion of your monthly budget. Downsizing typically reduces maintenance costs as well—smaller homes usually mean lower utility bills, fewer repairs, and easier upkeep. This can result in substantial savings on everything from property taxes to homeowner’s insurance.

3. Retirement Savings and Contributions

This might seem obvious, but it’s worth emphasizing: retiring means you can stop making retirement contributions. During your working years, you may have been setting aside hefty amounts in 401(k) plans, IRAs, or other retirement accounts. Once retired, you’ll stop making these contributions and begin drawing from these accounts instead, freeing up a big chunk of your monthly budget.

While maintaining an emergency fund and managing your withdrawals carefully to ensure your savings last through retirement is crucial, the monthly financial commitment to savings will no longer consume a large portion of your income.

4. Childcare and Education

Once your children and step-children are grown and financially independent, childcare and education costs are behind you. The expenses of raising a family—school supplies, activities, and college tuition—will no longer strain your budget, leading to significant savings. Some retirees choose to help fund their grandchildren’s or step-grandchildren’s education, or support other family members financially—but it’s important to ensure that generosity doesn’t compromise your own long-term financial security.

5. Healthcare 

As you transition into retirement, managing healthcare costs becomes a critical concern, especially with advancing age. But if you’re in reasonably good health, you may be surprised to learn that your healthcare expenses often go down in retirement, particularly in the early years. 

Once you're eligible for Medicare at age 65, you may see a reduction in your health insurance premiums compared to employer-sponsored plans. Medicare, especially when combined with supplemental policies, may provide comprehensive coverage at a lower premium. While it's true that healthcare costs tend to rise with increased medical needs later in life, strategic planning and investing in long-term care insurance can help lessen these potential costs. 

6. Debt

Addressing significant debts before transitioning into retirement can dramatically improve your finances once you retire. Paying off credit card balances, personal loans, and other high-interest debts will free up a substantial portion of your monthly income. For blended families, this might also include debts tied to previous marriages or shared expenses that took time to consolidate. Without ongoing payments, you'll have more flexibility and reduced financial stress. This approach can greatly enhance your financial well-being in retirement, allowing you to focus on enjoying your golden years rather than having unpaid obligations weighing on your budget.

Spend with Confidence in Retirement

Your blended family’s retirement reality will be different from everybody else’s. That’s why properly planning for the changes retirement naturally brings to your life and finances is so important. And notice, I said planning—a verb—by intention. Your retirement may last 30 years. While we can’t predict every twist and turn that far ahead, we can see next year a little more clearly if you live intentionally.

Discovering extra cash flow in retirement opens the door to numerous possibilities. However, it’s important to manage this surplus wisely—consider your long-term financial stability since you won't be receiving regular raises or bonuses anymore. While it might be tempting to increase your discretionary spending, it's wise to consider a balanced approach that aligns with your long-term financial goals and personal values.

We can help you develop your vision and create a plan that balances enjoying your retirement years with maintaining long-term financial freedom. This plan might include budgeting for travel and new experiences, supporting your grandchildren's education—including from multiple family branches—building a legacy, or contributing to causes close to your heart. 

At Endurance Financial Group, we help blended families align each financial decision with a unified retirement plan that reflects their shared values, goals, and responsibilities, allowing them to make the most of their resources while maintaining financial confidence throughout their retirement years.

Based in St. Paul, MN, Endurance Financial Group is an Independent Registered Investment Advisor partnering with blended families to combine their household finances in a unified financial plan that works for all members of the family. They can be reached by phone at 651-605-2318 or online at efg-planning.com. 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This material was prepared by Crystal Marketing Solutions, LLC, and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate and is intended merely for educational purposes, not as advice.