Turning 70 may come with a well-earned sense of freedom, but it doesn’t come with a break from bills. Even if your mortgage is paid off or you’ve downsized, monthly expenses still stack up. So, how much does the average 70-year-old middle-class retiree actually spend?
According to the U.S. Bureau of Labor Statistics’ Consumer Expenditure Survey, the average retired household spends about $5,400 per month, or $65,000 a year. That covers a mix of essentials—like housing and healthcare—and lifestyle comforts.
Here’s the monthly breakdown:
- Housing – $1,850: Whether it’s mortgage, rent, taxes, or upkeep, housing remains the biggest line item.
- Transportation – $900: From gas and insurance to car repairs, the road isn’t free—retirees still drive regularly.
- Healthcare – $650: Medicare premiums, prescriptions, and co-pays can add up fast.
- Food – $700: Groceries and the occasional night out still play a big role in the budget.
- Utilities & Services – $370: Includes everything from water and electricity to internet and phone bills.
- Entertainment & Hobbies – $280: Retirement doesn’t mean boredom—travel, dining, and streaming are popular.
- Miscellaneous – $300: Think clothing, home goods, gifts, and the occasional splurge.
Spending tends to decrease with age, especially after 75. But healthcare costs tend to rise, outpacing inflation. That’s why planning ahead is key—accounting for medical expenses, staying flexible with housing, and adjusting investment strategies for longevity can keep your retirement on track.