“When your abode becomes an upkeep burden, which often can be the case with those alluring second homes, it's time to reassess,” shesaid.

Selling the family home and purchasing or renting a smaller dwelling usually means lower utility bills, taxes and property insurance. Plus, any equity made from the sale can be reinvested or used to replace lost income to help offset expenses.

Moving to a less expensive area is another way to get a bigger bang for your buck. Thakor says those who live on the East and West coasts are often stunned by how much you can get for your dollar in middle America.

“That's magnified in certain states with more favorable income-tax structures,” she pointed out. “The flip side is that there can also be a great deal of enjoyment that comes from having deep roots and a history in the place you are currently living.”

Thakor says while there isn’t a one-size-fits-all solution, the key is figure out why you are living where you are.

Small Changes, Big Savings

New York retiree Georgeanne White, 67, said living on a fixed income and watching her life savings earn next to nothing at the bank was difficult, but after her husband passed away two years ago, her budget became even tighter.

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