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4 Ways to Stretch Your Fixed Income

Many older Americans depend on a fixed income to meet their monthly needs. Whether it’s a pension, retirement savings, or Social Security, living on a fixed income means receiving the same amount of money every month to meet your living expenses. 

However, living on a fixed income can be challenging, as any unexpected increase in everyday prices can disrupt your cost of living. For example, increasing everyday costs like food and transportation can upset the delicate balance of a fixed income with inflation on the rise.

Additionally, older adults on a pension might experience unique healthcare needs, require increased care assistance, or incur higher healthcare costs, impacting their ability to live well on a fixed income.

In addition to creating and tracking a budget, here are some ways you can save money on retirement expenses and stretch your fixed income.

1. Use discount programs to save money

Many stores provide membership-based discounts that will stretch your dollar further. For example, grocery stores and pharmacies often offer coupons or build in lower prices for shoppers in their loyalty programs.

Amazon Prime also offers a discount membership for older adults who rely on qualified government assistance programs. As a member, you can get access to all Prime benefits, including free and next day delivery. 

There are also businesses that provide budget-friendly discounts specifically for older or retired adults. Namely, cellphone carriers like AT&T and T-Mobile, the National Park Service, and restaurants like IHOP and Denny’s.

2. Save on healthcare costs through savings programs 

Older adults can have complex healthcare needs that sometimes drive up the costs of hospital visits, prescriptions, and treatments. These costs can create uncertainty in your budget when you have a fixed income. However, programs like Medicare Savings Programs (MSPs) can help older adults reduce these costs and pay less on insurance premiums if they qualify. 

There are different savings programs to choose from. For example, the Specified Low Income Medicare Beneficiary (SLMB) Program and Qualified Individual (QI) Programs help pay for Part B premiums, while Qualified Disabled and Working Individuals (QDWI) Programs help you pay for Part A Premiums. You can also plan ahead for prescription drug costs through the Medicare Prescription Payment Plan.

Also, the Qualified Medicare Beneficiary (QMB) Program helps pay for Part A and/or Part B premiums and prevents Medicare providers from billing you for deductibles, coinsurance, and copayments.

3. Supplement grocery costs with SNAP 

The Consumer Price Index (CPI) on food increased 2.7% from November 2023 to November 2024 — and even higher from the year before that. An increase in food prices can eat into your fixed income, no matter how well you budget.

SNAP — the Supplemental Nutrition Assistance Program — supplements grocery costs for those who qualify, including people living on a fixed amount below a certain threshold. SNAP allows older adults who meet this requirement to still purchase nutritious foods, including fruits and veggies, meats, and dairy, helping keep you healthy without breaking the bank.

4. Pay less for prescriptions through the Medicare Extra Help Program

The cost of life-saving medications can sometimes be prohibitively expensive, causing older adults to break the bank to fill their prescriptions or sometimes go without. Thankfully, resources like Medicare Extra Help Program can help adults below a certain income level and with limited resources to pay for their medications (Part D).

People who are already benefiting from a Medicare Savings Program can automatically be signed up for Extra Help, as well as people with full Medicaid coverage and those on a Supplemental Security Income (SSI) from Social Security. 

This program reduces the costs of your prescriptions to a fraction of their original price, allowing you to maintain your health without disturbing your fixed income budget.

Plan ahead to make the most of your fixed income

While retirement can be a rewarding time for older adults to enjoy life outside of work, it can also be challenging to maintain your quality of life on a fixed income. A fixed income from a pension or retirement savings doesn’t allow for a lot of flexibility, and any changes in the economy can impact your standard of living. 

But discount programs, healthcare savings programs, SNAP, and Medicare Extra Help Program can bridge the gap and support you in your later years so you can worry less about money and focus more on enjoying life. 


*Disclaimer:

References to any commercial product, service, or enterprise are provided solely for the convenience of the reader and do not constitute an endorsement or recommendation by Spring Venture Group (SVG) or SmartMatch Insurance Agency.

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