Key Points
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Retiree households spend a little less than younger U.S. households do.
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Still, America’s senior households also collect less monthly income.
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Regardless of how much money you’ve got coming in or going out, making it work for you starts with making a careful, specific budget plan.
Life’s expensive for everyone in the United States these days. Blame recently accelerating inflation, of course. For retirees dependent on Social Security and retirement savings, however, money feels even tighter. Their income just hasn’t kept up with the recent surge in inflation.
And this begs the question: How much are the nation’s retirees spending every month just to survive? Here’s a look.
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How much retirees are spending (and getting) every month
The data comes from the Bureau of Labor Statistics’ most recent (2024) survey of consumer expenditures, which of course has changed somewhat since then. More specifically, most of these costs have grown at least a little bit in the meantime. Also know that these numbers reflect households — not individuals — that are home to an average of 1.8 people with at least one aged 65 and up. Be sure to adjust accordingly for a household of only one person, or more than two.
| Category | Overall Average Household | Retiree Household |
|---|---|---|
| Food (at home/out) | $847 | $662 |
| Housing | $2,189 | $1,849 |
| Apparel/services | $167 | $100 |
| Transportation | $1,110 | $795 |
| Healthcare | $516 | $650 |
| Entertainment | $301 | $252 |
| Personal care | $82 | $65 |
| Miscellaneous | $102 | $81 |
| Total expenses | $6,545 | $5,119 |
| Income | $8,684 | $5,622 |
Data source: Bureau of Labor Statistics. (Note that each category’s amounts do not add up to the “total expenses” amount, as only major, common spending categories have been listed here.)
Yes, retirees are unsurprisingly spending less than U.S. households overall (where an average of 2.4 people reside) except for one category. That’s healthcare. As you can see in the table, most households are spending about 20% less despite covering more people’s care.
A plan without specifics is only a wish
There are exceptions to these numbers, of course, some of which can be extreme.
Still, the mathematical averages are the averages for a reason, and are a pretty good approximation of what most retirees are shelling out every month. You’re likely to spend about the same amount in retirement, if you aren’t retired already.
To this end, if your current or future budget doesn’t look quite like this one and isn’t working or going to work for you in the long run, something obviously needs to change. Just don’t sweat it too much if you can’t find that one big cut that makes a big difference. Often it’s easier to make several smaller spending cuts across every category you can. Also, don’t forget to make the most of your idle cash by keeping it in more productive money market accounts until you need to spend it.
Whatever the case, the best place to start is with a pencil and a piece of paper, a list of exactly how much money you’ve got coming in every month, and where and what’s exactly going right back out.
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