Seb Frey is a REALTOR® and founder of Team Sixty Plus, a curated network connecting older adults and their families with trusted professionals across California. With decades of experience helping homeowners 60+ navigate major life transitions—like downsizing, aging in place, or passing on a legacy—Seb brings deep market knowledge, a compassionate approach, and a commitment to simplifying complex decisions. When he’s not advising clients, he’s sharing expert insights on real estate, retirement strategies, and quality-of-life resources for the 60+ community.
Most retirement money problems don’t start with one big disaster. They start with small leaks: a fee you never noticed, a subscription you forgot about, a savings account paying almost nothing, an insurance policy you no longer need. Each one seems too small to worry about on its own. But together, they can quietly drain thousands of dollars a year from your retirement, money that could be paying for travel, time with the grandkids, or simply the peace of mind that comes from knowing your savings will last.
The good news is that money leaks are among the easiest retirement problems to fix. Unlike market downturns or inflation, they’re completely within your control, and plugging even a few of them can free up real cash without cutting back on the things you enjoy. Here are nine of the most common money leaks we see among people over 60, what they can cost you, and exactly how to fix each one.
Why Small Leaks Matter More in Retirement
When you were working, a few wasted dollars here and there were easy to absorb. Your next paycheck refilled the account. In retirement, that changes. Most people are living on a mix of Social Security, savings, and perhaps a pension, and every dollar that leaks out has to come from a fixed pool of money that may need to last 25 or 30 years.
Leaks also compound in two ways. First, money lost to fees or idle cash stops growing, so you lose not only the dollars themselves but everything they could have earned. Second, many leaks grow over time: subscriptions raise their prices, insurance premiums creep up, and Medicare plans change every year. A $100-a-month leak at 65 adds up to about $24,000 by age 85, before counting any lost growth. That’s why a once-a-year money checkup is one of the highest-value habits you can build after 60.
Retirement Planning for Older Adults
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Get the Guide!Leak #1: Investment and Advisor Fees You Don’t Notice
Fees are the most expensive leak for many retirees because they come out quietly, year after year, and compound over time. You might be paying an advisory fee of around 1% of your assets each year, plus the expense ratios of the mutual funds inside your account, and possibly trading or account fees on top.
One percent doesn’t sound like much, but here’s what it can mean. Imagine a $500,000 portfolio that earns 6% a year before fees. Over 10 years with no withdrawals, it would grow to about $895,000. If an extra 1% in fees reduces that return to 5%, the same portfolio grows to only about $814,000. That’s roughly $81,000 less, gone to fees rather than to you. Over a 20- or 30-year retirement, the gap gets much bigger.
How to fix it: Ask your advisor for a written breakdown of everything you pay, including the advisory fee, fund expense ratios, and any commissions. Compare that with low-cost index funds or a flat-fee or hourly fee-only planner. Good advice can be worth paying for. The goal isn’t to avoid paying for help, but to make sure you know exactly what you’re paying and what you’re getting in return.
Leak #2: Cash Sitting in an Account That Pays Almost Nothing
Many retirees keep a healthy cash cushion, which is smart. The problem is where that cash sits. According to Federal Reserve data based on FDIC figures, the national average savings rate was just 0.38% in October 2026. Meanwhile, many online high-yield savings accounts were paying around 4%.
On $50,000 in savings, that’s the difference between earning about $190 a year and about $2,000 a year. Leaving cash at a big-bank savings rate could be costing you $1,800 or more every year for no reason.
How to fix it: Keep only what you need for regular bills in checking. Move your emergency fund and short-term savings into an FDIC-insured high-yield savings account, a money market fund, certificates of deposit (CDs), or short-term Treasury bills. Rates change often, so check them once or twice a year.
Leak #3: Subscriptions and Auto-Renewals You Forgot About
Streaming services, apps, magazines, warranty plans, cloud storage, gym memberships you haven’t used since before the pandemic. Subscriptions are designed to be easy to start and easy to forget. Many renew automatically, and some quietly raise their prices every year.
Individually, $9.99 or $14.99 a month doesn’t feel like much. But five or six forgotten subscriptions can easily add up to $50 to $100 a month, or $600 to $1,200 a year.
How to fix it: Once a year, sit down with three months of bank and credit card statements and highlight every recurring charge. Cancel anything you haven’t used in the last month. For the ones you keep, call and ask about senior or loyalty discounts, or rotate streaming services instead of paying for all of them at once.
Leak #4: Insurance That No Longer Fits Your Life
Insurance needs change a lot after 60, but many people keep paying for the same coverage they bought decades ago. Common leaks include life insurance you no longer need, low deductibles on home and auto insurance that cost more in premiums than they’re worth, extended warranties on appliances and electronics, and auto insurance that hasn’t been shopped in years.
Auto and home insurance rates have climbed sharply in recent years, and loyalty rarely gets rewarded. Many insurers count on customers renewing without comparing.
How to fix it: Review every policy once a year. Get quotes from at least three insurers for home and auto. Consider raising your deductibles if you have a solid emergency fund. Ask about discounts for driving less, bundling policies, completing a defensive driving course, or being a retiree. And take a fresh look at whether your life insurance still makes sense.
If you’re not sure whether you still need coverage, Do You Still Need Life Insurance After 60? walks through who should keep it, who might be able to drop it, and the policy types that make sense later in life.
Leak #5: Not Reviewing Your Medicare Plan Every Year
Medicare plans change every year. Premiums, deductibles, drug coverage, and provider networks can all change, sometimes dramatically. Yet many retirees choose a plan once and let it renew automatically for years.
For 2027, some popular standalone Part D drug plans are raising premiums by $50 to more than $100 a month, which can mean $600 to $1,200 more a year for the exact same coverage. Higher-income retirees can also face income-based surcharges called IRMAA on top of their Part B and Part D premiums.
How to fix it: Every fall during Open Enrollment, which runs from October 15 to December 7, compare plans based on your total yearly cost, including premiums, deductibles, and your specific medications, using the Medicare Plan Finder. Free, unbiased help is available from your State Health Insurance Assistance Program (SHIP).
For a step-by-step walkthrough, Medicare Part D 2027: Switch Plans Before December 7 and Keep Hundreds More shows how to compare drug plans the right way before the deadline.
Leak #6: Claiming Social Security Without a Strategy
When you claim Social Security is one of the biggest financial decisions you’ll make, and it’s permanent for most people. Claiming as early as 62 can significantly reduce your monthly benefit for life. On the other hand, for every year you wait past your full retirement age, your benefit grows by 8% until age 70, according to Social Security’s delayed retirement credits.
Claiming early isn’t always a mistake. If you have health concerns, need the income, or have a shorter life expectancy, it can make sense. The leak happens when people claim early without running the numbers, especially married couples, where the higher earner’s decision also affects the surviving spouse’s benefit for the rest of their life.
How to fix it: Before you claim, compare your benefit at different ages using your personal estimate from your my Social Security account. Consider your health, your other income, and your spouse’s needs. If you’re married, think carefully about having the higher earner delay, since that bigger check becomes the survivor benefit.
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Get the Guide!Leak #7: Paying More Tax Than You Have To
Taxes don’t stop when your paycheck does. Withdrawals from traditional IRAs and 401(k)s, required minimum distributions, pensions, and even part of your Social Security can all be taxable. Many retirees pay more than they need to simply because they withdraw money without a plan.
Common tax leaks include taking large withdrawals in a single year that push you into a higher tax bracket, ignoring the low-income years between retirement and required minimum distributions (which can be a great time for Roth conversions), missing the larger standard deduction available to people 65 and older, and selling investments without considering capital gains. Big income spikes can also trigger higher Medicare premiums two years later.
How to fix it: Create a simple withdrawal plan that decides which accounts to draw from each year. If you’re 70½ or older and give to charity, consider making qualified charitable distributions directly from your IRA to reduce taxable income. A tax professional or fee-only planner can often save you far more than they cost.
Leak #8: Helping Adult Children at the Expense of Your Own Retirement
Few things feel better than helping your kids. But for many retirees, it’s also one of the biggest money leaks. A recent Savings.com survey found that about half of parents provide regular financial help to their adult children, averaging around $1,474 a month. Working parents in that survey spent more than twice as much on their adult kids as they put into their own retirement accounts.
Paying for phone plans, car insurance, rent, groceries, or bailouts adds up quickly. And unlike your children, you can’t borrow for retirement. Every dollar given away is a dollar your savings can no longer earn for the years ahead.
How to fix it: Decide on a set amount you can comfortably give each year without touching your retirement security, and stick to it. Put the terms in writing if it’s a loan. Consider helping in non-financial ways, like childcare or advice. And have an honest conversation with your family. Most adult children would rather you be financially secure than need their help later.
Leak #9: Scams and Fraud
The fastest money leak of all is fraud, and it’s getting worse. According to FTC data reported by InvestmentNews, older adults reported about $3 billion in fraud losses in 2025, and the FTC estimates the true total, including scams that go unreported, could be as high as $119.5 billion. Investment scams alone accounted for more than $1 billion in reported losses, and the number of older adults reporting losses of more than $100,000 has jumped more than fivefold since 2020.
The most common scams target retirees through fake investment opportunities, impostors pretending to be from the government, a bank, or a well-known company, romance scams, tech support scams, and “grandparent” emergency scams.
How to fix it: Never send money, gift cards, or cryptocurrency to anyone who contacts you unexpectedly, no matter how urgent it sounds. Hang up and call the company or agency directly using a number you look up yourself. Be extremely wary of any investment that promises high returns with little risk. Add a trusted contact to your financial accounts, and consider setting up account alerts so you know immediately about large withdrawals.
Bonus: Living in More House Than You Need
For many retirees, housing is the single biggest expense, and the family home can be a major leak once the kids are gone. Property taxes, insurance, utilities, maintenance, and repairs on a large house can easily cost thousands of dollars a year, often more than people realize until they add it all up.
Downsizing isn’t right for everyone, and many people love staying in their homes. But it’s worth running the numbers every few years. A smaller, lower-maintenance home can free up home equity for retirement and cut monthly costs at the same time. Start by adding up everything your home costs you in a year, including property taxes, insurance, utilities, routine maintenance, and an allowance for big repairs like a roof or a furnace. Then compare that with the cost of a smaller home, condo, or rental in the area where you’d like to live.
If you do decide to stay, there are still ways to plug housing leaks. Ask your county about property tax exemptions or freezes for older homeowners, which many states offer. Shop your homeowners insurance, have your home’s energy use checked by your utility company, and plan major repairs ahead of time instead of paying emergency prices.
If you’re weighing a move, The Financial Benefits of Downsizing in Retirement breaks down how much cash a smaller home can free up and what to consider before you list.
How Much Could You Save?
Here’s a rough look at what plugging just a few of these leaks could mean in a single year, using the examples above:
- Moving $50,000 from a 0.38% savings account to a 4% high-yield account: about $1,800
- Canceling forgotten subscriptions: about $600 to $1,200
- Switching a Part D plan that’s jumping in price: about $600 to $1,200
- Shopping home and auto insurance and adjusting deductibles: often several hundred dollars
Together, that could easily mean $3,000 to $5,000 or more a year back in your pocket, before even counting lower investment fees, smarter taxes, or a better Social Security strategy. Over a 20-year retirement, that’s tens of thousands of dollars.
Time to Downsize?
Discover the joy of letting go! Our guide to Downsizing helps you downsize with ease.
Your Money Leak Checkup
Set aside one afternoon this month and work through this list:
- Request a written breakdown of all investment and advisory fees you pay.
- Check the interest rate on your savings, and move extra cash to a higher-yield option.
- Review three months of statements and cancel unused subscriptions.
- Get new quotes for home and auto insurance, and review whether you still need life insurance.
- Compare Medicare plans before December 7.
- Make a Social Security claiming plan if you haven’t claimed yet.
- Create a simple tax-smart withdrawal plan, ideally with a professional.
- Set a clear yearly limit on financial help for adult children.
- Add a trusted contact and turn on account alerts to protect against fraud.
Small Fixes, Big Freedom
You don’t need to earn more or cut out the things you love to make your retirement savings go further. Often, the fastest way to more money is to stop losing the money you already have. Fees, idle cash, forgotten subscriptions, outdated insurance, unchecked Medicare plans, rushed Social Security decisions, unnecessary taxes, open-ended help for adult kids, and scams can quietly add up to thousands of dollars every year. Fixing them takes a little time and attention, but the payoff lasts for the rest of your retirement.
Start with the easiest leak on this list and fix it this week. Then tackle one more each month. By this time next year, you could have thousands of extra dollars working for you, money you can spend on travel, family, hobbies, or simply the comfort of knowing your savings will be there when you need them. That’s what living your best life after 60 is all about.
This article is for educational purposes only and isn’t personalized financial, tax, or insurance advice. Rates and rules change often; confirm current figures and talk with a qualified professional before making major decisions.
