You may be able to stretch your budget by living in a state that does not tax some, or all, types of income drawn from retirement fund distributions.
Nine of those states that don't tax retirement plan income simply have no state income taxes at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. The remaining three — Illinois, Mississippi and Pennsylvania — don't tax distributions from 401(k) plans, IRAs or pensions. Alabama and Hawaii don't tax pensions, but do tax distributions from 401(k) plans and IRAs.
If the Fed wanted to do something for seniors, which they don't, they'd stop taxing retirement income on a federal level.