Monthly Spending Breakdown for Retirees 65 and Older: Housing, Food, Transportation, Healthcare

Katharine Paljug

Sat, August 22, 2026 at 9:05 PM GMT+3 3 min read

The average retiree age 65 or older spent about $5,120 per month, according to the most recent data.
Credit: Curly_photo / Getty Images

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 largest share of annual expenses 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
Utilities/fuel: $4,480
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 health insurance 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
Drugs (prescription or over the counter): $898
Medical supplies: $344

Note

According to a 2025 study from Fidelity, the average 65-year-old will spend $172,500 on healthcare during their retirement.

Other Spending in Retirement

Outside of those four big categories, retirees spent an additional $13,962.

Entertainment was one of the larger categories, at $3,025 per year, or $252.08 a month. This includes movie tickets, pet care, camping, exercise equipment, and sporting events.

Other spending also included expenses for reading, such as purchasing books or e-book readers, as well as tobacco products and educational expenses.

Other large categories of spending included "cash contributions," such as alimony, child support, support for students away from home, and charitable donations: $3,158 per year, or $263.17 a month.

The personal insurance or pensions category comprises insurance costs, such as life insurance, but excludes car, health, and home insurance: $3,480 per year or $290 a month.

The Bottom Line

In 2024, the average person in the U.S. aged 65 or over spent just over $5,000 per month. Of this, the largest portion was spent on housing, including rent, mortgage, utilities, and other related expenses.

The other top spending categories were transportation, health care, and food. While not all individuals aged 65 and older are retired, these spending patterns may approximate what the average American currently spends in retirement, as the average retirement age for both men and women is below 65.

Read the original article on Investopedia