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In your 60s and 70s, the goal should be to retire well, not impress your friends and family.
Unfortunately, it’s easy to forget this simple principle. Many retirees quietly sabotage their financial future just to keep up appearances.
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Nearly one in 12 baby boomers (8%) between the ages of 60 and 78 said they felt some social pressure to spend beyond their means and keep up with the financial status of someone in their peer group, according to LendingTree (1).
That’s a small minority, but if you’re in that group, you could be putting your personal finances at risk. Here’s why ‘looking poor’ is a critical part of ensuring a comfortable and sustainable retirement.
Living below your means and rejecting the social pressure to appear wealthy could offer structural advantages that compound over time.
Firstly, flaunting your wealth could put you at risk of attracting the wrong attention. Adults over the age of 60 were more likely than other age cohorts to report losses of $100,000 or more due to financial fraud, according to the Federal Trade Commission (2). In 2024, this group lost $2.4 billion to a combination of investment scams, romance scams or impersonations. However, much fraud goes unreported, so the FTC estimates that the total cost of fraud among older adults could be as high as $81.5 billion.
If you’re bragging about your portfolio, dividend income or luxury vacations on Facebook, you could be putting yourself on the radar of increasingly sophisticated scam artists. This is especially true in an age of AI-powered scams, where a convincing duplicate of a child or grandchild could contact you asking for money.
Secondly, a modest lifestyle gives you a margin of safety in your portfolio.
If you’re only spending 70% or 80% of your actual capacity, you have more room to adjust spending when an economic crisis or wave of inflation hits your assets. Unlike many seniors, if you live below your means, you don’t have to cut your spending or adjust your lifestyle during downturns.
Finally, ‘looking poor’ gives you peace of mind.
Roughly one-third (33%) of adults over the age of 50 expressed some feelings of anxiety over money concerns, according to the University of Michigan National Poll on Healthy Aging conducted in 2024 (3). And it’s not purely anxiety either. Just over half (52%) of older adults cut back on everyday expenses, too.
The fear of running out of money in retirement or making uncomfortable sacrifices to make ends meet keeps many seniors up at night. Living below your means reduces some of this risk and could help settle at least some of your anxiety.
Living at or above your means, especially in retirement, can be risky.
If you’re reluctant to cut back spending to avoid looking poor, you’re more likely to plug the gap with debt.
Before you know it, you could be in your 70s and carrying outside personal loans and auto loan balances just to keep up appearances and impress your neighbors.
Senior debt is a growing problem, as highlighted by the AARP (4). Households headed by someone between the ages of 65 and 74 have quadrupled their average debt burden between 1992 and 2022. Nearly 65% of people over the age of 65 who have debt consider it a serious problem.
Indeed, the interest payments are a real risk when your income is fixed and inflexible.
If you think you’re overspending or borrowing too much, it may be a good idea to closely examine your budget and cut out anything frivolous or unnecessary.
Cutting unnecessary expenses starts with awareness — and that’s where many people fall short. Nearly 30% of Americans say they don’t need a budget, according to Credit.com (5).
Taking a closer look at your transactions can quickly reveal small but recurring expenses — like forgotten subscriptions, unused memberships, or surprise late fees — that quietly drain your bank account month after month.
Platforms like Monarch Money make it easier to create a budget and track your spending effectively.
Once you link your accounts — including investments and real estate — you will be able to view every transaction through one clean, searchable list.
This way, you can spot any unexpected charges, such as unwanted subscriptions, quickly and seamlessly. Monarch Money also helps you forecast your spending beyond just one month, as well as save for big goals along the way.
Once you’ve trimmed the obvious extras, it may be time to take a closer look at your fixed costs — the bills that show up every month, no matter what.
The lower your baseline expenses, the easier it becomes to make your savings last, especially in retirement. That could mean downsizing to one vehicle if it’s feasible, or taking a closer look at what you’re paying for insurance.
The average cost of full coverage car insurance climbed to $2,638 in 2025 — an increase 12% from 2024, according to Bankrate (6).
The good news? You’re not stuck with your current rate. Comparing quotes, negotiating rates or adjusting your policy could reduce your monthly bill.
You can easily shop around and compare quotes offered by reputable insurance providers through Insurify. By comparing quotes and selecting the best deal, customers could see average potential savings of $1,100.
Just answer a few basic questions, and Insurify will show you the most affordable deals in as little as three minutes.
Not only is the process 100% free, but you could also save up to 15% by bundling your car and home insurance.
And for homeowners, OfficialHomeInsurance lets you compare rates and features on home insurance policies from top providers near you.
Here’s how it works: Answer a few basic questions about yourself and your home, and OfficialHomeInsurance will comb through its database of over 200 insurers to display the lowest rates available. On average, you could save $482 by comparing rates.
The best part? This process is entirely free, and it takes just two minutes.
After lowering expenses where you can, it’s worth stepping back and looking at your overall financial plan.
If the idea of digging through your finances feels overwhelming, a financial advisor can help you map out how much you can realistically afford to spend in retirement — and help you stay a step below that threshold to build in a margin of safety.
There may be a financial upside as well. Research from Envestnet shows that those who worked with financial advisors saw returns 3% higher than those who didn’t (7).
You can find a reputable FINRA/SEC-registered financial advisor near you for free through Advisor.com.
All you have to do is enter a few details about your finances and goals, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert near you for free.
Advisor.com does all the heavy lifting for you — vetting advisors based on their track record, client ratios, and regulatory background. Even better, their roster comprises fiduciaries, who are legally obligated to act in your best interest.
Still, hiring an advisor can be a lifelong commitment. After all, there isn’t a one-size-fits-all strategy. That’s why Advisor.com lets you set up a free initial consultation, with no obligation to hire, to see if they’re the right fit for you.
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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
LendingTree (1); Federal Trade Commission (2); Institute for Healthcare Policy & Innovation (3); AARP (4); Credit.com (5); Bankrate (6); Envestnet (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.