In some categories, spending does indeed decrease, even in surprising ones like food. In others areas, like health care, life becomes more expensive as you age. Here’s the data shown as a monthly breakdown of how households headed by a retirement-age person spend money, on average, in seven major categories:
- Housing: $1,322 Housing is the biggest spending category for all age groups — retirees included.
- Transportation: $567 The average outlay is about one-third less than the average for households of other ages.
- Health care: $499
- Food: $483 Retirees spend nearly 20% less than the average household does on food.
- Personal insurance/pensions: $237
- Cash contributions: $202
- Entertainment: $197 Older households spend about as much on fun stuff as do those ages 25 to 34.