The median retirement income in the US is $4,190/month — here are 5 top tips to live well on less than half of that

But if you think your monthly income will wind up closer to the Census Bureau’s average, there are some savvy ways to stretch those dollars and live a satisfying post-work life.

Set yourself up with a cushion

Many people mistake cushion funds for emergency funds, which are usually three to six months worth of savings to handle a sudden health setback or other money emergency.

Think of a cushion fund as a step beyond emergency savings, or as some on the internet choose to call it, a “F— off fund”. They act as buffers that can apply to a broader range of purposes that include investments, and help you avoid dipping into retirement savings and what you have set aside for actual emergencies.

Cushion funds offer a great way to ease some of the anxiety about paying day-to-day expenses in retirement.

Cut the food waste

The pantry is an often overlooked drain on our funds, as many folks literally bite off more than they can chew. A recent report found Americans waste on average one-third of groceries they buy. The lesson? Make a shopping list, stick to it in the aisles, and see how much you can save over time.

Also consider cutting back on eating out or at least switching from restaurant dinners to lunches, which tend to cost less. Meanwhile, plan your meals and cook at home to zero in on exactly what you need when grocery shopping — and where possible, buy items on sale.

Cancel those subscriptions

Forgotten subscriptions can cost more than $100 a month, a huge amount for anyone on a small income. A 2022 study from C + R Research found that Americans severely underestimate what they pay in monthly subscriptions.

Among the leading types of forgotten subscriptions are auto-pay TV and movie apps, with their seemingly small monthly costs that can really add up. While Gen Zers were most likely to forget about which services they subscribed to, around 40% of Gen X and a quarter of baby boomer respondents said they forget about their subscriptions but still pay for them.