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The Daily Habit That Shows You’re Ahead of Most Retirees

   July 15, 2026  Posted in Money, News

Mature couple looking happy at the beach. Kate_sept2004/Getty Images

There are tons of different ways to measure retirement success, with many zeroing in on hitting certain financial milestones. But here’s the thing — these benchmarks don’t always give you the whole picture. Some retirees might look great on paper but have a murkier situation when you dig into their actual assets and debts. So here’s a lifestyle habit that’s actually a solid indicator you’re crushing it in your golden years: spending less than what you bring in.

Check out the 2024 Employee Benefit Research Institute (EBRI) Spending in Retirement survey — it found that 31% of retirees admitted to spending more than they could handle, jumping from 27% back in 2022 and just 17% in 2020. And get this: 2023 Bureau of Labor Statistics data showed that households run by someone 65 or older were spending an average of $60,087 against an average take-home income of $58,969. That’s a gap of over $1,100 where spending beats income. With this pattern climbing steadily since 2020, chances are good that 2026 numbers look even worse. So landing in that group of retirees who keep spending in check? That might not make you wealthy, but it definitely puts you ahead of the pack.

How to start living below your retirement means

An older woman wearing glasses counts U.S. dollar bills while writing on a notepad at a table surrounded by houseplants Leventince/Getty

First up: create a budget if you want to get serious about cutting back. It’s honestly a game-changer. The best starting point is to write down what you’re bringing in and what you’re spending for at least a month, then use that to build your monthly cash-flow budget. Don’t forget to factor in those annual costs like insurance or property taxes — just divide them by 12 and add them to your monthly expenses. Once you’ve covered your bills and essentials, set aside an emergency fund for curveballs like home or car repairs. Then give yourself a set monthly amount for fun stuff and extras. This approach helps you build a realistic budget based on what you’re actually spending instead of just guessing, which means you’re way more likely to stick with it.

Now, you might also need to get creative and make some lifestyle adjustments. According to recent data, housing and transportation eat up about half of what American households spend each year as of 2024. Say you’ve got two cars — maybe think about selling one or trading both in for something cheaper. You could also explore moving to a more budget-friendly home or even relocating to a less pricey area, as long as moving costs don’t cancel out your savings. And don’t overlook the power of trimming ongoing expenses. Shop around for better insurance deals or cancel subscriptions and services you barely use. These moves can really add up.

Author: John Meyer