How sneaky costs chip away at older Australians’ budgets
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Jane Bari, 77, jokes she’s an “economic reality prepper”. After years of feeling squeezed, she scrapped almost every extra expense – “subscriptions, eating out, entertainment, all gone” – and even downsized her home. Today she cooks 99% of meals at home and is living below her means.
But not every retiree can or will go to those lengths. For most of us, retirement is supposed to be about enjoying the fruits of decades of hard work. Yet with the age pension covering only around three-quarters of monthly costs on average (and two-thirds of that spent on basics like rent, bills and groceries), there’s very little cushion for extras or surprises.
In fact, close to seven in ten pensioners say the pension alone won’t meet their needs. No wonder 80% of older people report feeling the pinch of rising living costs, and nearly all admit they worry about inflation or interest rates eroding their budget. Even basic power bills or a doctor’s visit (if they can’t find a bulk-billing GP) are starting to feel like luxuries.
Yet it’s not just electric bills or rent that make wallets thin. A surprising share of retirees find their nest egg sneaking away in tiny, “invisible” ways – the sort of costs you barely notice until your bank balance is low. As one finance site warns, overspending “doesn’t always come from extravagant purchases; it’s often the result of small, unnoticed expenses.” In practice, that can mean dozens of low-dollar items or monthly fees that quietly add up.
Below, we unpack some of the most common pitfalls – from subscription services to daily coffees to sneaky online traps – that can leave even careful seniors overspending without realising it.
Many seniors may have even more subscriptions lurking in their bank statements – think cloud storage, photo-print services, audiobooks, weather apps or newsletter fees – the list goes on.
Worse, leaving these accounts unchecked can feel like falling into a trap. Consumer groups have long warned about “subscription traps” where it’s intentionally hard to cancel, or where a free trial converts into a paid plan without clear warning. A recent Guardian report noted regulators are concerned about “forced continuity” tactics that “stop customers cancelling online subscriptions or services”.
Universities have analysed these digital dark patterns and found that they are “designed to manipulate users into actions they wouldn’t normally take, whether it’s making an unintended purchase… or simply struggling to cancel an unwanted subscription”. Older Australians – who are typically less confident with tech – are especially vulnerable. UniSA researchers explicitly flag that “older Australians and those with lower digital literacy are at higher risk, often failing to recognise misleading online tactics.”
In real terms, that means every forgotten streaming account, magazine subscription or app can quietly siphon dollars. ING research suggests the average Aussie could save around $1,261 a year by cancelling unneeded memberships and apps – an eye-watering number even on younger budgets, let alone a fixed pension. In fact, $8 billion per year is estimated to leak from the economy in unused subscriptions overall.
CHOICE’s Alex Soderlund adds that he’s seen “more examples of unfair business practices” recently, from “making it extremely difficult to unsubscribe from an online service” to using aggressive sales tactics in remote communities. While these comments weren’t aimed only at seniors, it’s clear retirees can get caught out by any such scheme. A good habit (though of course not exactly expert advice) is to periodically review credit card or bank statements for old fees. Even simply writing down every subscription might make you notice one you stopped using.
The National Seniors article warns that these “limited-time offers” often lead to unnecessary buys, because you think you’re saving money when really you’re buying something you didn’t need. Those spare dollars here and there quickly add up: every novelty gadget or knick-knack purchased on a whim means less left over for everyday needs.
Small indulgences count too. A daily “arvo latte” or a ham-and-cheese toastie on the go might feel like pocket change – but at say $5 a pop, five coffees a week is $1,300 a year. The National Seniors piece points out “even small daily purchases such as takeaway coffees can add up”. The same goes for treats like magazines, occasional restaurant meals or taxi rides. One retired nurse told a seniors’ forum, “I realised I was buying expensive coffees out every day — it was my little luxury, but it cost a fortune over time.”
And there’s the psychology: after decades of working and saving, many retirees feel entitled to a little treat, which is understandable. But it’s easy to slide from reasonable enjoyment into steady “lifestyle creep” without noticing.
Sometimes seniors also overspend in the name of being savvy: chasing bargains can mean driving to multiple shops or buying bulk, which can be wasteful if food spoils. Experts often suggest sticking to a shopping list or meal plan, not only to eat healthier but also to avoid those extra snacks and impulse items. Similarly, many of us keep paying for phone, internet or insurance plans long after we needed them.
The National Seniors article notes that retirees often stick with the same large phone or NBN plan, even if usage falls, and could save by switching. (Again, simply because “I’ve always had this plan” is hardly a good reason to overpay.) Overlooking these options doesn’t feel like overspending at the time, but it is like leaving loose change on the table.
For example, a grandparent might routinely cover petrol for their daughter’s work commute or pay for a grandchild’s internet plan. Each act of love is understandable, but it can tip a budget if done often. Compare the Market’s data even notes boomers are “unsung heroes” of the cost-of-living crisis, “chipping in to help their kids and grandkids in some way.”
Likewise, many seniors struggle to say no to requests for cash handouts or trips. There can be guilt (“I should help them while I can”) or cultural expectations around gift-giving. These stresses are real: one retired teacher shared on a forum that monthly birthdays, baby showers and the like meant constant ‘necessary’ spending.
Even charitable giving (to grandchildren’s schools, community groups, church collections) is part of the picture. Over time, these payments add up — yet they’re often kept off the radar of a monthly budget because they’re perceived as normal. It helps to periodically ask: if I keep this pattern up for a year, will I be able to afford all my own needs?
Meanwhile, there’s also personal lifestyle changes that come with retirement. Once the mortgage is paid or downsized, some feel flush with extra cash and indulge. Perhaps you install solar panels, purchase a new hobby, or splurge on a holiday. These can be wonderful, but if planned poorly they turn into what experts call “lifestyle creep” – small raises in living standard that quietly erode savings.
For instance, deciding to travel in retirement is common, but booking an extra trip abroad each year may outpace the pension increase. After decades of scrimping, it’s natural to want to enjoy life. The trick is balancing enjoyment with the hard math of a fixed income.
Older Australians, the report stresses, are among the most vulnerable, often “failing to recognise misleading online tactics”.
For example, say you buy cheap airfares online. Sometimes carriers add a “booking fee” or force you into insurance by unselectable defaults. Or a retailer’s cart page might pre-check a pricey warranty. We barely notice until the credit card bill arrives.
Even online shopping can convert an “add to cart” into an immediate purchase if the site auto-checks a final box. And in the app world, people have been caught in the so-called “hotel California” trap: an app is easy to sign up for, but virtually impossible to unsubscribe, so fees keep coming. CHOICE has campaigned about these very issues, citing cases where companies made unsubscribe links nearly invisible.
Another digital danger is investment and impersonation scams. According to ACCC’s Scamwatch, Australians lost $477 million to scams in 2023, and alarmingly, “older people recorded the highest losses of any age group.” The news was stark: “Authorities have warned of a huge spike in social media scams targeting older people”.
Common tricks include fake online adverts or messages (often on Facebook or WhatsApp) offering a must-buy deal or lottery win; once you pay, no goods arrive. Over 2023, social-media scams alone took $95 million from victims, with nearly half via WhatsApp. It’s a real risk: a CHOICE analysis found Australians 65+ lost $82 million to scams in 2021 – more than double the previous year. Often, these are portrayed as “limited offers” or urgent safety checks.
For instance, a grandparent might get a call claiming their bank account was hacked, and be tricked into transferring money “for safekeeping.” The money is then gone for good.
Even legitimate businesses can confuse prices. Supermarkets and service providers sometimes advertise a low headline price, but that may exclude a surcharge (like a “payment fee” or “facility charge”) that isn’t clear until checkout. A UniSA researcher points out that one in four Australians can’t decipher in-store price tags, let alone hidden online fees. Seniors – especially those with poor eyesight or cognitive overload – can easily miss these fine-print costs. Suddenly, an electricity tariff or a phone plan is more expensive than it first seemed.
It doesn’t mean cutting out all enjoyment. It does mean staying alert: read those statements, ask clarifying questions (“Is this really a special price or just marketing?”), and pause before clicking “buy now.” Remember that retailers and scammers want you to act fast or mindlessly. Be the exception who thinks twice.
As Carolyn McColl of Meals on Wheels NSW puts it, these hidden costs are piling on top of a pension that “is no longer sufficient to meet basic living expenses,” forcing “many elderly Australians to make significant sacrifices.” Senior singles and couples are already skipping heating or doctor visits to scrape by. The last thing they should do is unknowingly blow hundreds on forgotten fees.
So, what’s the takeaway? It’s not about denying yourself a coffee or cancelling Christmas gifts. Rather, it’s about checking in now and then: scan your bank statements like a hawk, question that “too good to be true” deal, and politely pass on extras that would leave you short. Every small saving today could mean an extra meal or a new pair of shoes tomorrow.
In the end, it comes down to vigilance. Which sneaky expense in your own routine might you discover this week – before it quietly drains another dollar from your retirement fund?
But not every retiree can or will go to those lengths. For most of us, retirement is supposed to be about enjoying the fruits of decades of hard work. Yet with the age pension covering only around three-quarters of monthly costs on average (and two-thirds of that spent on basics like rent, bills and groceries), there’s very little cushion for extras or surprises.
In fact, close to seven in ten pensioners say the pension alone won’t meet their needs. No wonder 80% of older people report feeling the pinch of rising living costs, and nearly all admit they worry about inflation or interest rates eroding their budget. Even basic power bills or a doctor’s visit (if they can’t find a bulk-billing GP) are starting to feel like luxuries.
Yet it’s not just electric bills or rent that make wallets thin. A surprising share of retirees find their nest egg sneaking away in tiny, “invisible” ways – the sort of costs you barely notice until your bank balance is low. As one finance site warns, overspending “doesn’t always come from extravagant purchases; it’s often the result of small, unnoticed expenses.” In practice, that can mean dozens of low-dollar items or monthly fees that quietly add up.
Below, we unpack some of the most common pitfalls – from subscription services to daily coffees to sneaky online traps – that can leave even careful seniors overspending without realising it.
Image Source: Seniors Discount Club
Leaks in the budget: subscriptions and memberships
One of the biggest culprits is subscription creep. It’s easy to sign up for a free trial of a streaming service, join a gym or club, or subscribe to magazines and apps – and then forget about them. Before long, you’re paying each month for things you rarely use. The National Seniors newsletter points out that unused subscriptions “can cost hundreds of dollars a year”. Industry data confirms how common this is: by late 2024 nearly three-quarters of Australian households had at least one paid video streaming subscription, and the average family was shelling out about $50 per month on streaming alone – up from $43 a year earlier. (That jump was driven largely by price hikes for Netflix, Stan, etc.)Many seniors may have even more subscriptions lurking in their bank statements – think cloud storage, photo-print services, audiobooks, weather apps or newsletter fees – the list goes on.
Worse, leaving these accounts unchecked can feel like falling into a trap. Consumer groups have long warned about “subscription traps” where it’s intentionally hard to cancel, or where a free trial converts into a paid plan without clear warning. A recent Guardian report noted regulators are concerned about “forced continuity” tactics that “stop customers cancelling online subscriptions or services”.
Universities have analysed these digital dark patterns and found that they are “designed to manipulate users into actions they wouldn’t normally take, whether it’s making an unintended purchase… or simply struggling to cancel an unwanted subscription”. Older Australians – who are typically less confident with tech – are especially vulnerable. UniSA researchers explicitly flag that “older Australians and those with lower digital literacy are at higher risk, often failing to recognise misleading online tactics.”
In real terms, that means every forgotten streaming account, magazine subscription or app can quietly siphon dollars. ING research suggests the average Aussie could save around $1,261 a year by cancelling unneeded memberships and apps – an eye-watering number even on younger budgets, let alone a fixed pension. In fact, $8 billion per year is estimated to leak from the economy in unused subscriptions overall.
CHOICE’s Alex Soderlund adds that he’s seen “more examples of unfair business practices” recently, from “making it extremely difficult to unsubscribe from an online service” to using aggressive sales tactics in remote communities. While these comments weren’t aimed only at seniors, it’s clear retirees can get caught out by any such scheme. A good habit (though of course not exactly expert advice) is to periodically review credit card or bank statements for old fees. Even simply writing down every subscription might make you notice one you stopped using.
Enticing deals and impulse buys
Another common drain on retirement funds is the $5-at-a-time culture of deals and impulse purchases. Retailers love to pounce on shoppers – including seniors – with “limited-time” offers and doorbuster specials. Whether it’s a flashy T-shirt marked “Only $9.99!” or a big bundle discount on bulk homewares, a sharp discount tag can make us reach for the wallet faster than our brains.The National Seniors article warns that these “limited-time offers” often lead to unnecessary buys, because you think you’re saving money when really you’re buying something you didn’t need. Those spare dollars here and there quickly add up: every novelty gadget or knick-knack purchased on a whim means less left over for everyday needs.
Small indulgences count too. A daily “arvo latte” or a ham-and-cheese toastie on the go might feel like pocket change – but at say $5 a pop, five coffees a week is $1,300 a year. The National Seniors piece points out “even small daily purchases such as takeaway coffees can add up”. The same goes for treats like magazines, occasional restaurant meals or taxi rides. One retired nurse told a seniors’ forum, “I realised I was buying expensive coffees out every day — it was my little luxury, but it cost a fortune over time.”
And there’s the psychology: after decades of working and saving, many retirees feel entitled to a little treat, which is understandable. But it’s easy to slide from reasonable enjoyment into steady “lifestyle creep” without noticing.
Sometimes seniors also overspend in the name of being savvy: chasing bargains can mean driving to multiple shops or buying bulk, which can be wasteful if food spoils. Experts often suggest sticking to a shopping list or meal plan, not only to eat healthier but also to avoid those extra snacks and impulse items. Similarly, many of us keep paying for phone, internet or insurance plans long after we needed them.
The National Seniors article notes that retirees often stick with the same large phone or NBN plan, even if usage falls, and could save by switching. (Again, simply because “I’ve always had this plan” is hardly a good reason to overpay.) Overlooking these options doesn’t feel like overspending at the time, but it is like leaving loose change on the table.
- Unused subscriptions: Every forgotten Netflix, gym, magazine or app fee is a tiny leak. Even small fees (say $10–15/month) multiply over months.
- Impulse bargains: Flashy discounts and “hot deals” can trigger purchases you don’t actually need. Retailers use psychology (countdowns, “one-time” offers) to make us act fast.
- Daily treats: A takeaway coffee, magazine or restaurant meal is a nice break, but a few here and there become hefty costs by year’s end.
- Phone/utility plans: Carrying on with old mobile or NBN plans when your usage has changed can waste money. Comparing deals might reveal savings, but we often skip that task.
- Family ‘loans’ and gifts: Out-of-earnings help to kids or grandkids – on purpose or under pressure – can strain a slim budget (see next section).
Helping loved ones and legacy habits
Many retirees naturally shift spending towards supporting family. Whether it’s helping children buy a car, contributing to bills, or simply lavishing treats on grandkids, these heartwarming expenses can quietly inflate your monthly outgoings. Indeed, recent research shows it’s extremely common: almost 75% of Australian grandparents surveyed said they financially helped their family in some way, with 31% gifting money or buying essentials like clothes and toys.For example, a grandparent might routinely cover petrol for their daughter’s work commute or pay for a grandchild’s internet plan. Each act of love is understandable, but it can tip a budget if done often. Compare the Market’s data even notes boomers are “unsung heroes” of the cost-of-living crisis, “chipping in to help their kids and grandkids in some way.”
Likewise, many seniors struggle to say no to requests for cash handouts or trips. There can be guilt (“I should help them while I can”) or cultural expectations around gift-giving. These stresses are real: one retired teacher shared on a forum that monthly birthdays, baby showers and the like meant constant ‘necessary’ spending.
Even charitable giving (to grandchildren’s schools, community groups, church collections) is part of the picture. Over time, these payments add up — yet they’re often kept off the radar of a monthly budget because they’re perceived as normal. It helps to periodically ask: if I keep this pattern up for a year, will I be able to afford all my own needs?
Meanwhile, there’s also personal lifestyle changes that come with retirement. Once the mortgage is paid or downsized, some feel flush with extra cash and indulge. Perhaps you install solar panels, purchase a new hobby, or splurge on a holiday. These can be wonderful, but if planned poorly they turn into what experts call “lifestyle creep” – small raises in living standard that quietly erode savings.
For instance, deciding to travel in retirement is common, but booking an extra trip abroad each year may outpace the pension increase. After decades of scrimping, it’s natural to want to enjoy life. The trick is balancing enjoyment with the hard math of a fixed income.
Digital traps and price confusion
In our tech-savvy age, spending sneaks in through screens too. Many of us now do banking, shopping and paying bills on phones or tablets. That convenience can be a double-edged sword. University of South Australia research warns that 95% of popular apps and many websites use “dark patterns” – subtle tactics like confusing opt-out buttons, hidden fees or fake urgency – that can trick any user into unplanned spending.Older Australians, the report stresses, are among the most vulnerable, often “failing to recognise misleading online tactics”.
For example, say you buy cheap airfares online. Sometimes carriers add a “booking fee” or force you into insurance by unselectable defaults. Or a retailer’s cart page might pre-check a pricey warranty. We barely notice until the credit card bill arrives.
Even online shopping can convert an “add to cart” into an immediate purchase if the site auto-checks a final box. And in the app world, people have been caught in the so-called “hotel California” trap: an app is easy to sign up for, but virtually impossible to unsubscribe, so fees keep coming. CHOICE has campaigned about these very issues, citing cases where companies made unsubscribe links nearly invisible.
Another digital danger is investment and impersonation scams. According to ACCC’s Scamwatch, Australians lost $477 million to scams in 2023, and alarmingly, “older people recorded the highest losses of any age group.” The news was stark: “Authorities have warned of a huge spike in social media scams targeting older people”.
Common tricks include fake online adverts or messages (often on Facebook or WhatsApp) offering a must-buy deal or lottery win; once you pay, no goods arrive. Over 2023, social-media scams alone took $95 million from victims, with nearly half via WhatsApp. It’s a real risk: a CHOICE analysis found Australians 65+ lost $82 million to scams in 2021 – more than double the previous year. Often, these are portrayed as “limited offers” or urgent safety checks.
For instance, a grandparent might get a call claiming their bank account was hacked, and be tricked into transferring money “for safekeeping.” The money is then gone for good.
Even legitimate businesses can confuse prices. Supermarkets and service providers sometimes advertise a low headline price, but that may exclude a surcharge (like a “payment fee” or “facility charge”) that isn’t clear until checkout. A UniSA researcher points out that one in four Australians can’t decipher in-store price tags, let alone hidden online fees. Seniors – especially those with poor eyesight or cognitive overload – can easily miss these fine-print costs. Suddenly, an electricity tariff or a phone plan is more expensive than it first seemed.
A fine line between enjoying and overspending
All these factors – everyday deals, subscriptions, family help, tech tricks and inflation – add up to a complex picture. Some older Australians, like Jane Bari, respond by extreme belt-tightening. Others might not notice the drips until the tub is empty. The best we can do in an editorial (rather than a budgeting guide) is raise awareness.It doesn’t mean cutting out all enjoyment. It does mean staying alert: read those statements, ask clarifying questions (“Is this really a special price or just marketing?”), and pause before clicking “buy now.” Remember that retailers and scammers want you to act fast or mindlessly. Be the exception who thinks twice.
As Carolyn McColl of Meals on Wheels NSW puts it, these hidden costs are piling on top of a pension that “is no longer sufficient to meet basic living expenses,” forcing “many elderly Australians to make significant sacrifices.” Senior singles and couples are already skipping heating or doctor visits to scrape by. The last thing they should do is unknowingly blow hundreds on forgotten fees.
So, what’s the takeaway? It’s not about denying yourself a coffee or cancelling Christmas gifts. Rather, it’s about checking in now and then: scan your bank statements like a hawk, question that “too good to be true” deal, and politely pass on extras that would leave you short. Every small saving today could mean an extra meal or a new pair of shoes tomorrow.
In the end, it comes down to vigilance. Which sneaky expense in your own routine might you discover this week – before it quietly drains another dollar from your retirement fund?
