artmarie / iStock.com
Commitment to our readers
The GOBankingRates editorial team is committed to providing you with unbiased reviews and information. We use data-driven methods to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our review methodology for products and services.
20 years
help you get rich
trusted by
millions of readers
Many retirees over the age of 70 are living on limited or fixed incomes, making it more important than ever to keep an eye on spending. Yet it’s still easy to overspend on certain categories, especially if you feel like time is running out.
To dig deeper, I asked ChatGPT to help me research the areas where these retirees are wasting the most money on non-essential expenses. When you remove necessities like housing and health care, real waste often appears in small, everyday choices.
While “wasting” might seem like a harsh way of talking about spending your own money, in this context, it refers to spending money that provides little value relative to the cost. This is a big deal over age 70, not only because of the potential fixed income, but also because these retirees have less time to recover savings or investments.
eating out and eating away from home
As they age, retirees find themselves less interested in laborious tasks like shopping, meal planning, and cooking at home. However, ChatGPT warns that this could be the result of mindlessly eating out too often, rather than being good for the budget.
According to data from the Federal Reserve Bank of St. Louis, the average annual spending on meals away from home for those aged 65 to 74 is approximately $2,841 per year (as of 2024). While this may not seem like much to someone in high-earning years, these are funds that can be bookmarked for essentials like health care or emergencies.
While it’s appropriate to spend a little on dining out occasionally, especially when it involves time with friends and family, ChatGPT suggests retirees dial back on this type of spending.
Gifts and financial support for grandchildren
One of the benefits of becoming grandparents is the opportunity to provide gifts and financial support to grandchildren. However, if it’s not included in your retirement planning, ChatGPT warns it could deplete the savings needed to survive. It pointed to data from TheSeniorList.com, which found in a June 2025 survey that 96% of U.S. grandparents give their grandchildren an average of more than $3,900 per year in financial support.
If possible, try to include this expense in your retirement planning, otherwise, look for trade-offs where your gift means you’ll cut back on other areas of spending.
Entertainment, Hobbies and Recreation
Since retirement is often a time to slow down, you may find yourself spending more on passive entertainment such as streaming services, concerts and/or hobby equipment such as knitting supplies. ChatGPT found that older adults spend hundreds of dollars each year on things like entertainment fees and admission, and “other supplies” that can include things for hobbies.
While retirees certainly shouldn’t give up on leisure experiences, look for free and low-cost versions, or bundle streaming services together to make their money go further.
Subscriptions and small recurring fees
The AI pointed out that streaming services, subscriptions, apps and other digital services that automatically renew are areas where it is easy for a person of any age to overspend, and retirees are no exception. Most people now spend hundreds of dollars a year on services they may have forgotten to renew. This can really add up to wasted money.
Retirees should carefully review each month to see what charges are appearing and whether they are still using these apps or services.
Apparel and ‘just because’ shopping
Retirees still spend on apparel and personal items, even in their later years. ChatGPT shared Consumer Expenditure Survey data from the Bureau of Labor Statistics, showing that Americans age 65 and older have spent more than $1,000 annually on apparel and services over the past few years. While retirees should always update their wardrobe when necessary, ChatGPT cautions that this is a discretionary category that often reflects impulse or “just because” purchases rather than needs. Spending on clothing and accessories rarely improves financial stability and can accumulate without much use.
The common thread in these spending categories are habits left unchecked. None of these expenses are inherently wrong, yet they can quietly damage financial security over time.