Watching your savings dwindle is a frightening feeling, no matter when it happens. But when you're young and still able to work, you can at least reassure yourself that you can make some more. Once you're retired, that may no longer be an option for you.

There are things you can try to stretch your savings further, like sticking to a budget or applying for financial assistance programs. But those might not be enough in all cases. In that situation, it might be worth reconsidering your living arrangements to reduce costs further.

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How a move could make retirement a lot more affordable

Moving to a more affordable area in retirement can reduce how much you spend on rent or mortgage payments, and since housing is most people's largest expense, this can make a substantial difference to your monthly budget. Sometimes, a move can also lower other costs, such as groceries, insurance, taxes, or healthcare, depending on where you go.

For some people, moving within a city to a more affordable neighborhood is enough. Others choose to move to another state or even another country where they can stretch their savings further.

Not every move is cost-saving, though. If your home is already paid off and housing costs have risen substantially in your area since you first purchased the home, moving to a new place may not save you any money, even if the new home is smaller.

You also want to make sure that savings on housing expenses won't get replaced by higher costs elsewhere. For example, if your new state has higher taxes than you're used to and the difference in housing costs is small, you could actually wind up spending more. Make sure you compare all these variables when deciding whether relocating in retirement is right for you.

What to do if you don't want to move in retirement

Moving in retirement isn't the right call for everyone. You might be attached to your neighborhood or want to stay close to family or friends. That's understandable, but it means your strategy will have to change

If you still have a mortgage on your current home, you could try refinancing it over a longer term to see if you can get a lower monthly payment. Or if you have substantial equity in your home, you might consider a reverse mortgage to give yourself a little extra cash.

Renters have fewer options, so they may need to consider other cost-saving measures, such as taking in a roommate or negotiating with their landlord. You can also focus on lowering costs in other areas of your life.

Everyone's approach will look different, and that's OK. Focus on finding the strategies that make the most sense for you, and try them out for a few months. Then, evaluate whether they're working out how you thought they would, and make changes as necessary.