Monthly Spending Breakdown for Retirees 65 and <a href="https://healthylife7.com/why-rapid-weight-loss-can-make-you-look-older/” title=”Why rapid weight loss can make you look older”>Older: Housing, Food, Transportation, Healthcare
Katharine Paljug
Sat, August 22, 2026 at 11:35 PM GMT+5:30
3 min read
Key Takeaways
On average, Americans 65 and older spent about $5,100 per month—or more than $61,000 per year, according to the most recent federal data
Housing was retirees’ biggest expense, followed by transportation, food, and healthcare
Retirement budgets also made room for entertainment, travel, hobbies, pets, and other lifestyle costs
Comparison is often called the thief of joy, but for retirement planning, it can be a valuable tool, helping you understand how much you might need to save and spend in retirement to maintain your lifestyle
According to the latest available federal data, which is from 2024, the total annual spending for individuals aged 65 and older in the U.S. averaged $61,432. This comes out to about $5,120 per month. By far the biggest spending categories were housing, food, transportation, and healthcare. However, those 65 and older, many of whom are retired, are also spending a significant portion of their income on entertainment
To develop your own spending plan for retirement, see how your purchasing habits stack up
Housing, Food, and Transportation Costs
The goes toward housing, at $22,193 per year, or about 36% of annual spending. Each month, that’s $1,849.42
These costs break down as follows:
Rent/mortgage/taxes/maintenance: $12,995
Furnishing/housekeeping/other household expenses: $4,718
Transportation is the next largest category, costing more than food: $9,538 per year, or approximately 15.5% of the annual budget. That’s $795 each month.This category includes vehicle purchases, fuel, maintenance, insurance, and any public transportation costs
Those ages 65 and older spent an average of $7,940 per year on food, or $662 a month—12.9% of their annual spending. That includes food (both meals out and at home). Alcoholic beverages are also included in monthly food costs, but on average, older adults spend just $44.33 per month
Healthcare Costs in Retirement
Healthcare was also a significant spending category for individuals aged 65 and older
Older adults generally spend more on healthcare than younger adults, as they’re more likely to experience health issues and may be charged higher premiums
On average, individuals aged 65 and older spent $7,799 on healthcare in 2024, which is 12.7% of their annual spending. That’s $649.92 per month
The largest share of annual medical expenses went to covering health insurance:
Health insurance: $5,107
Medical services: $1,449
: $898
Medical supplies: $344
