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Running out of money during your retirement can take the shine off your golden years, and the risk might be greater than you think.

After all, the average life expectancy for 79-year-olds is slightly over 10 years, according to the Social Security Administration. Meanwhile, the average annual spending for U.S. households of those 75 years and older was $53,481 in 2022, based on Bureau of Labor Statistics data.

With a modest $2,000 monthly income from Social Security and $50,000 in savings, it’s natural to be worried about outliving your savings and looking for some guidance.

And those savings might not get you as far as you expect. Using a Fidelity retirement calculator shows that if your savings are invested, and earn an average annual rate of return of 5%, you can afford to make nine yearly withdrawals of around $6,700. That’s only an extra $558 a month.

Let’s walk through how you can navigate this difficult financial situation.

While owning a home outright is a huge advantage, maintaining it can be costly — especially during retirement.

Moving to a smaller, lower-maintenance home or a senior-friendly community can reduce property taxes, utilities and upkeep. Downsizing can also free up capital and reduce monthly costs significantly. You can also consider renting out a spare room to generate extra income.

For those who want to age in place, compromise is typically the name of the game. Although having a tenant may not be ideal, it’s worth considering if you don’t want to downsize.

Medicare provides essential coverage, but supplemental insurance can be pricey.

Seniors with limited income should check their eligibility for Medicare Savings Programs. These state-administered programs help pay Medicare premiums, deductibles and co-pays for low-income seniors.

There’s also the “Extra Help” program for prescription drugs. The SSA offers assistance to reduce Part D prescription costs based on income and resources.

Staying on top of these programs through resources like Medicare.gov can save you hundreds, or even thousands, of dollars per year.

Older adults should also ensure they have plans in place if their health takes a turn, or when they can no longer age in place.

Long-term care insurance offers coverage that can help with in-home assistance, nursing homes or assisted living facilities.

For example, GoldenCare offers a range of insurance options based on your needs, including hybrid life or annuity with long-term care benefits, short-term care, extended care, home health care, assisted living and traditional long-term care insurance.

Read more: Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

Stretching $2,000 a month requires some discipline, but living a frugal lifestyle while still enjoying your quality of life can still be within reach.

This starts with making a monthly budget.

After all, knowing where your money goes is the first step to creating a realistic lifestyle plan. From here, it can pay to track your expenses and categorize your needs versus wants. If you’re tech-savvy, tools like Monarch Money can give you an overview of your financial situation.

Monarch Money helps you assess your budget and spending habits while planning for the future. This all-in-one tool can also track your investments, and offer personalized advice so you can plan with confidence. Even better, the app is protected by Plaid for secure data integration, and employs multi-factor authentication at login, so you can keep your accounts safe.

You can download the app now for a 7-day free trial. After that, you can get 50% off your first year with code MONARCHVIP.

Beyond budgeting, try to limit dining out, subscriptions and non-essential purchases. Buy in bulk, shop sales and utilize food assistance programs if you’re eligible. Local senior centers, food banks and utility assistance programs can also help reduce expenses.

Another way to drive down expenses is to look at essential spending like insurance policies.

Many seniors can lose out on savings because they don’t shop around for lower prices, and stick with the insurer they’ve used for decades. This can leave money on the table that could go towards funding their retirement.

If you’re questioning whether your insurance rates could be lower, it may be time to consult OfficialHomeInsurance.com, which helps you look for low rates for free.

In under 2 minutes, OfficialHomeInsurance.com makes it easy to compare offers tailored to your needs from a list of over 200 reputable insurance companies.

Simply fill in a bit of information and you can quickly find home insurance coverage at the lowest cost for you. On average, OfficialHomeInsurance.com users save $482 a year.

While you’re saving money on home insurance, you might also consider whether you’re being gouged on your auto insurance rates.

OfficialCarInsurance.com helps you instantly sort through the best policies from car insurance providers in your area, including trusted names like Progressive, GEICO and Allstate.

With rates as low as $29 per month, you can find coverage that suits your needs, and potentially save you hundreds of dollars per year.

To get started, fill in your information and OfficialCarInsurance.com will provide a list of the top insurers in your area.

Unexpected health expenses, home repairs or other emergencies can quickly throw you off a tight budget.

Many experts recommend that you keep at least three to six months worth of expenses in a highly liquid account, such as a dedicated high-yield savings account. This means that, if you need to access funds right away, you won’t have to tap your investments or take on debt.

Retirees are generally advised to build larger emergency funds, but this can be tricky to do if your savings are limited. Consult a trusted financial advisor about this if you can.

Abid Salahi, finance expert and co-founder of FinlyWealth, told GOBankingRates that retirees should aim to keep 12 to 18 months of living expenses in their emergency fund. If you haven’t been building an emergency fund, you can still start small and work up some momentum over time.

If you’re a senior living on a tight Social Security income, it’s important to be proactive about emergency savings, optimize your home and healthcare costs, and have control over daily expenses.

Although nothing is a guarantee, being more aware of your saving and spending habits can help you feel more secure in your retirement.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.