Study: Retirees Spend Nearly $5,000 a Month
Here’s where their income goes and how to plan accordinglyBy Dawn AllcotYou might be expecting your expenses to decrease with retirement and, according to 2022 data from the Department of Labor’s Bureau of Labor Statistics, that’s true.The average American retiree spends $54,975 each year.Compare that to adults aged 25 to 34, who spend $67,883 yearly, while those aged 35 to 44 spend $86,049 per year. Between the ages of 45 to 54, Americans spend $91,074 annually, according to the Bureau of Labor Statistics. However, the earnings for these age groups are proportionately higher, too.The average income before taxes for U.S. retired persons was $48,780 — less than the average expenditure. In order to keep your finances balanced as a retiree — as the average retiree is spending more than their income — you’ll want to consider what you’re spending on and how to manage that.For retirees ages 65 and up, the bulk of their income goes to four expenses. What are they? And how can you work to reduce these costs so your retirement income lasts longer — or to free that money up for things like traveling and hobbies? HousingHousing, on average, makes up about 20% of a retirees’ expenses, (more…)