Downsize. Moving into a smaller house or cutting back from two cars to one is a great way to significantly slash expenses in retirement. Some retirees take it even further and move to an area of the country where theire retirement dollars will stretch more. Approximately 27 percent of Americans are considering relocating to an area with a lower cost of living as a result of the current economic climate, according to a Bank of America survey. U.S. News has a search tool that allows you to create a personalized list of great places to retire, including criteria like the cost of housing and proximity to healthcare. You can also check out these affordable and low-tax places to retire.