Some people assume they’ll spend less money in retirement. While that’s true in some cases, there are still five key areas where they can trim their largest expenses. The U.S. Bureau of Labor Statistics estimates the average retired household spends $50,220 a year, compared to an average of $63,036 for all households.
According to Vision Retirement, the five biggest expenses for seniors are housing, transportation, healthcare, food, and utilities.
Data shows retirees spend $1,456 per month on housing compared to the $1,723 for all households. That includes almost half of retirees who still have a mortgage.
The transportation expense for retirees is an average of $624 monthly, compared to $895. Food costs, including eating out, average $550 a month compared to $681. Utilities can run $3,810 a year for retirees as opposed to $4,055.
Healthcare is the one exception, with retirees averaging $6,833 a year compared to $5,193. Preventive care plus good exercise and eating habits can drive that cost down.
Council of Seniors Wants to Help You Enjoy the Retirement You Earned
Trimming expenses while getting extra income will make retirement easier. Here at Council of Seniors, we’re working hard to get Congress to pass The SAVE Benefits Act. Because the annual Social Security cost of living adjustment (COLA) has been inadequate or skipped in recent years, this bill is a must. Once passed, $581 will be returned to deserving seniors.
We ask that you please take a moment right now to sign our petition. Congress needs to recognize how many people support this bill.
Are you keeping track of your expenses and how to trim them? Leave us a comment and let us know.
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