Tuesday, October 9, 2018

The Cost of Being Retired

What do people really spend in retirement? According to the latest Bureau of Labor Statistics data,  “older households” — defined as those run by someone 65 and older — spend an average of $45,756 a year, or roughly $3,800 a month. That’s about $1,000 less than the monthly average spent by all U.S. households combined.

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.

No comments:

Post a Comment