Too Much Month Left at the End of the Money in Retirement ???

  Retirement Ain't Cheap

Here’s how much the typical household needs for basic expenses in retirement.

Prohibitive Expenses

Retirement typically involves saving enough money to pay all your bills without working.

Retired households spend an average of $40,938 per year, according to the most recent Consumer Expenditure Survey conducted by the U.S. Bureau of Labor Statistics.

Here’s how much it costs to retire in the U.S.

Housing

Housing is typically the largest cost retirees face, averaging $14,034 among people age 65 and older.

This amount includes $5,194 per year for owned property versus $1,818 for rented apartments.

Utilities cost retirees $3,411 annually, with electricity being the largest charge.

Mortgage interest and charges ($1,475), property taxes($2,026) maintenance and insurance ($1,693) and household furnishings ($1,260) also add to the housing costs of retirees.

Food

Retirees age 65 and older spend an average of $5,126annually on food.

Most of this money is spent on meals at home ($3,301), with meat, poultry, fish and eggs ($687) and fruits and vegetables ($661) being the most expensive categories of food older Americans eat. They spend another $1,825 on food away from home.

Transportation     

Driving costs tend to decline in retirement because retirees no longer need to commute to work, but retirees still need to get around.

 They spend an average of $6,651 annually on transportation, including the costs for gasoline, insurance, maintenance and repairs.

Retirees also spend an average of $500 per year on public transportation. 

Health Care

Health care costs can increase in retirement, especially if your health care needs change due to illness.

Retirees spend an average of $5,094 on health care, including health insurance, medical services, drugs and medical devices. 

Entertainment

Retirees have a lot of newfound free time to fill, and often that ends up costing money.

Those age 65 and older spend an average of $2,026 on entertainment, such as fees and admissions, audio and visual equipment and hobbies.

They also spend an average of $403 on their pets.

Clothing

Although seniors no longer need work clothes in retirement, they still need to purchase new articles of clothing as they wear out.

Retirees spend about $1,029 per year on apparel, including footwear.

Personal Care

 People age 65 and older purchase an average of $566 worth of personal care products and services, including shampoo and other hair care products, toothpaste and similar oral care tools, cosmetics, shaving and bath products.

 Education

 Retirees spend an average of $278 annually on education costs and $140 on reading materials, including books, newspapers and magazines.

Retirees in the West and Northeast spend the most on continuing education.

Smoking

 Seniors age 65 and older buy tobacco products, including cigarettes, cigars, loose smoking tobacco and smoking accessories that cost an average of $189 each year.

Retirees in the Midwest and South spend more on smoking than retirees in the Northeast and West. 

Charity

 Retirees give away an average of $2,515 per year as cash contributions, perhaps as gifts to family members or donations to charitable, religious, educational or political organizations.

 Retirees in the Midwest are the most charitable, giving away $3,083.

1. 
   July 11, 2016 at 9:33 AM

   From Robert N...to...Anthem Opinions
   
   I’M FROM THE GOVERNMENT AND I’M HERE TO HELP YOU
   by Robert N
   
   I fully recognize that the article about “retirement costs” is based on data provided by the Bureau of Labor Statistics. This is NOT intended to “kill the messenger”. The true intention of this reply is to demonstrate why citizens cannot (and should not) believe anything reported by the Government.
   
   Their cost-of-living statistics appear to have the same validity as does their monthly unemployment data. Let’s look at some of the Government statistics:
   
   WHERE in this country could you rent an apartment for $1818 per annum? That reflects $151.50 per month…I dare say that IF you COULD find such accommodations, you would NOT want to live in that neighborhood.
   
   And, if you are lucky enough to own a home free and clear (e.g. no mortgage) do they really think 'maintenance and insurance’ equates to only $1693 per year?? Typically you spend about $500 - $1000 per year on home owner’s insurance – so that leaves you with $693 - $1193 for “maintenance” – ever hire a plumber or have your refrigerator break down? That figure is ludicrous.
   
   WHERE in this country could you buy a year’s worth of groceries for $3301 (the figure they site for ‘meals at home’) – that works out to about $275 per MONTH (or $63.48 per week)…go into a Costco (where groceries and sundries are – supposedly – cheaper) and try to spend less than $100 per visit.
   
   $6651 per year for ‘transportation’ (e.g. automobile gasoline, insurance, maintenance, and repairs) - good luck.
   
   I could go on – but why ‘beat a dead horse’? If this is the kind of fantasy promulgated by the Government, citizens should wake up and smell the proverbial coffee. Bottom line: it costs A LOT more than $40K a year to have a comfortable retirement. Their data does a serious dis-service to younger workers who MAY THINK they’ll have enough for retirement if it costs $40K a year. My advice to them: start practicing your retirement job – look into a mirror and repeat: “Welcome to Walmart” over and over.