How Retirees Can Get ‘Free Money’ From the Government

Jordan Rosenfeld

Sat, February 21, 2026 at 8:10 PM GMT+9 4 min read

When people refer to “free money” in retirement, they are usually talking about government programs that reduce expenses rather than increase income. These programs can help pay for healthcare, housing, utilities, food and taxes, allowing retirees to stretch fixed incomes further without taking on new debt or relying solely on savings.

Financial experts said many of these forms of assistance are available to a broader range of retirees than most people realize. Here are ways to get “free money.”

Lower Healthcare Costs Through Medicare and Medicaid Programs

Healthcare is often the largest ongoing expense in retirement. Several government programs help retirees reduce premiums, deductibles and prescription costs, effectively freeing up money in their monthly budgets.

Evan H. Farr, certified elder law attorney and retirement planner with Farr Law Firm, P.C., explained that people often overlook seeking this kind of assistance because they think they make too much income, when that is not always the case. “If a retiree has an income that is lower than the monthly cost of a nursing home, which is usually over $10,000 per month, then long-term care Medicaid will be available to them after they have structurally planned their assets.”

Jared Kessler, founder at Forex Broker, pointed out that these programs reduce costs for premiums, deductibles and prescriptions by directly paying them. “The benefit to participants is seen as less money going out in the form of medical bills.”

Medicare Benefits Finder

PAN Foundation Medication Assistance

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How Retirees Can Reduce Housing Costs

Housing costs are among the least flexible expenses retirees face. And many retirees are “asset rich but income poor,” Farr explained. Thus, retirees should look to local and state government programs that reduce property taxes, stabilize rent or subsidize senior housing.

“Relief programs [can] help with freezing property taxes to protect retirees from being priced out of their own homes,” Kessler said.

Melanie Musson, insurance and finance expert at Clearsurance.com, pointed out that low-income senior housing also exists in most cities. “These apartment complexes are often nicer than one might expect, and in addition to providing affordable housing, they offer a place of connection for other seniors.”

The only downside is that many times these have a waitlist and may not be immediately available.

Housing and Urban Development Senior Assistance

 






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National Council on Aging Housing Support

Get Help Paying Utility and Energy Bills

Utility and energy costs can fluctuate widely and strain fixed incomes. State, local and federal energy assistance programs help retirees lower monthly bills, particularly in areas with high heating or cooling costs.

Retirees should look directly to their utility providers and to county, city and state-level assistance programs to see if they qualify for reduced bills or bill-payment support.

“State and local assistance programs are the primary source of support in high-cost-of-living areas because retirees who can’t afford their power bills may still be above the income threshold for federal assistance,” Musson said.

Low-Income Home Energy Assistance Program (LIHEAP)

Consumer Finance Protection Bureau

Save On Food and Everyday Essentials

Food assistance programs can free up money in a retiree’s budget by offsetting grocery costs. These programs are not limited to extreme poverty and often require a separate application beyond Social Security or Medicare enrollment.

In states where SNAP benefits are not reduced or withheld, these additional benefits “can make the difference between being able to afford groceries and not,” Musson said.

USDA SNAP Benefits Info

Feeding America

Use State and Local Programs That Don’t Show Up Automatically

Some of the most useful assistance programs are administered at the state or local level and require retirees to apply separately. Because these programs do not receive national promotion, many retirees never realize they exist.

“State and local governments offer numerous programs that can help with your expenses on a daily basis, but they are less visible than national programs and do not get national advertising,” Kessler said.

National Council on Aging Senior Benefits Info

All Seniors Foundation

How Retirees Can Identify What They Qualify For Without Guessing

Rather than trying to research eligibility program by program, retirees can use professional or community-based screening resources to identify assistance more efficiently.

For retirees with the funds to hire help, Farr suggested working with a qualified elder law attorney. Musson recommended visiting local senior centers for assistance where advice is likely free.

Knowing what programs exist — and checking eligibility — can make a meaningful difference in retirement budgets.

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This article originally appeared on GOBankingRates.com: How Retirees Can Get ‘Free Money’ From the Government

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