There are certain expenses that tend to drop in retirement. You may not spend as much money on transportation, for example, once you're no longer commuting to work.
Your housing costs might also decrease if you manage to pay off your mortgage ahead of retirement. And if you downsize, you might spend less on property taxes, insurance, and maintenance.
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But if there's one expense that tends to increase for people in retirement, it's healthcare. And if you're on a tight budget that consists largely of Social Security, rising healthcare costs might leave you with little wiggle room for other expenses.
The good news? There are steps you can take to spend less on healthcare in retirement. Here are a few to implement at the start of the year.
1. Review your Medicare plan's rules carefully
Whether you got a new Medicare plan in 2026 or not, a new year means you may be looking at new rules to follow. Read through your plan's details carefully so you know what to expect.
Your Medicare plan, for example, may require that you obtain prior authorization for certain services. If you don't go through the proper channels, your claims could get denied.
2. Take advantage of preventive care to avoid larger bills
Medicare offers a wide range of preventive healthcare services at little to no cost. These include certain vaccines, health screenings, and an annual wellness exam.
It's a good idea to take advantage of the free or low-cost preventive services that are available to you. Not only might they help you preserve your health, but they could help you avoid the larger bills that come with having health issues escalate.
You should also know that some Medicare Advantage plans offer supplemental benefits that include nutrition counseling and meal delivery services. And it's pretty common for Medicare Advantage plans to offer fitness benefits. It pays to utilize these perks so your health stays strong and your bills stay low.
3. Lower your prescription costs strategically
Prescription drugs can be a big expense for retirees. If you're spending a large chunk of your retirement income on medication, there may be ways to lower your costs.
First, talk to your providers about alternatives. There may be a generic or lower-cost version of a drug you take that does the job just as well.
Also, see if your Part D or Advantage plan offers a discount for 90-day prescriptions. You can potentially save yourself money and make your life more convenient.
You may also, depending on your circumstances, be eligible for a manufacturer assistance program or a state-level drug assistance plan. It pays to see what options you have before resigning yourself to hefty prescription costs.
4. Switch your coverage during Medicare Advantage's open enrollment period
Many people are familiar with Medicare's fall open enrollment, which runs from mid-Oct through early Dec each year. But there's another open enrollment period early in the year for Medicare Advantage participants specifically.
Between Jan. 1 and March 31, existing Medicare Advantage enrollees can make changes to their coverage. You can drop your current Medicare Advantage plan if it isn't meeting your needs and choose another in its place. Or, you can drop Medicare Advantage altogether and switch to original Medicare plus a Part D drug plan.
If you just got a new Medicare Advantage plan and your out-of-pocket costs are increasing already (or you expect them to increase), it could pay to explore your options for new coverage. Making a switch could result in lower copays, premium costs, and deductibles.
Spending money on healthcare is something most retirees are used to. But that doesn't mean you need to let your costs spiral out of control. Make these moves to lower the burden of medical spending so you can stretch your retirement budget further.
