According to federal data, to get by in retirement costs roughly as much as it was before retirement. $50,178 is what a household that is run by a 65-year-old spend in a year. This is according to the most recent federal data on consumer spending. An average of $60,815 is spent across all households. The older houses have almost similar expenses with younger Americans; this includes:
On average, an older household spends $6,513 per year on food, and this figure includes when eating out or eating at home. The amount is lower compared to the $7,896 spent by the average household.
Public Services and Utilities
On utilities like electricity and natural gas as well as services such as water and phone, on average the older household spend $3,714. The average spent across all households is $3,956.
Now, this is one expense that increases in retirement compared to the $4,924 for all households; on average, an older household uses an average of $6,700 each year. For both average and older households across all ages, most healthcare spending is on insurance, and the rest is on medical supplies, drugs, and medical services.
The spending here is inclusive of mortgage, rent, and as well some hidden homeowner costs such as insurance, property taxes, maintenance, and repairs. This also translates to about a third of older household spending, which is an average of $16,723 per year as compared to $20,001 for the average household.
Just because commuting may come to a halt during retirement doesn’t mean that transportation costs will as well. On transportation costs such as insurance, gas, and vehicles. On average, the older household will spend an average of $7,472 per year; this is compared to the $9,735 for all households.