Retirement bills Some costs can be reduced or eliminated in retirement, while other expenses might remain the same or even increase as you age. You won't have to pay commuting costs or buy expensive clothes for work in retirement.

Housing Housing is likely to be your biggest cost in retirement, but there are a variety of ways to significantly reduce your monthly housing bills. Paying off your mortgage can eliminate a major monthly expense, leaving only the cost of taxes, insurance and maintenance.

Medicare premiums Most people don't pay a premium for Medicare Part A hospital insurance. Medicare Part B medical insurance charges a standard premium of $170.10 in 2022, and high-income retirees pay an additional premium.

Health care Medicare Part B has a $233 deductible in 2022. After that, you will be expected to pay for 20% of the Medicare-approved amount for most of the medical services you use unless you purchase another insurance plan to supplement traditional Medicare.

Taxes Senior citizens often qualify for extra tax breaks, but there are some new taxes that affect retirees. After years of deferring taxes on your retirement savings, you will need to pay income tax on each withdrawal from your traditional 401(k)s and IRAs.

Food You can save money on food in retirement if you are willing to give up expensive convenience foods and take the time to cook healthy meals at home.

Emergencies The need for an emergency fund doesn't end when you retire. You will continue to need to make home repairs, replace worn-out appliances and fix your car.

Entertainment Your newfound free time in retirement provides opportunities to try new things, but those new experiences can get expensive.