Turning 70 can feel like hitting a comfortable groove, but that doesn’t mean the bills stop coming. While some retirees may have paid off their mortgage or downsized, expenses like healthcare, home maintenance and everyday costs still add up.
For You: How Far $500,000 in Retirement Savings Plus Social Security Goes in Every State
Read Next: How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too
Knowing what the average retiree spends each month can make it easier to budget wisely and enjoy this next chapter with a little more peace of mind.
Trending Now: Suze Orman’s Secret to a Wealthy Retirement–Have You Made This Money Move?
Average Monthly Spending: Around $5,400
According to the Consumer Expenditure Surveys (CE) program from the U.S. Bureau of Labor Statistics, the average retired household spends roughly $5,400 per month or about $65,000 annually. This encompasses essential and discretionary categories like housing, healthcare, food, transportation and more.
Trending Now: Avoid This Retirement Savings Mistake That’s Costing Americans Up To $300K
Breakdown of Major Expenses
Here’s how average monthly expenses typically break down, according to the data collected in the Consumer Expenditure Surveys (CE) program.
Housing – $1,851 per month: Roughly a third of expenses go toward housing, covering mortgage or rent, property taxes, maintenance, home insurance, and utilities.
Transportation – $908 per month: Includes car payments, insurance, fuel, and maintenance, which may be higher than many expect post-retirement.
Healthcare – $662 per month: Combines Medicare premiums, co-pays, prescriptions, and out-of-pocket costs.
Food – $713 per month: Covers groceries and dining out.
Utilities and Services – $374 per month: Gas, electricity, water, internet and phone services.
Together, these five categories typically account for about 75% to 85% of a retiree’s monthly spending.
Lifestyle Spending and Discretion
Beyond the essentials, many retirees also budget for activities and purchases that add enjoyment and comfort to daily life. Here’s a look at some common lifestyle expenses.
Entertainment – $287 per month: Including hobbies, travel, dining out, and subscriptions, around 5% of the monthly budget.
Other (clothing, furnishings, household services) – $93 per month: Typically modest, around 2% to 3% each.
Variations by Income and Age
Spending usually declines with age. According to BLS data, total yearly expenditures fell from $83,379 for ages 55 to 64 to $65,149 for those aged 65 to 74. When living costs drop, such as paying off a mortgage or downsizing, retirees may see significant monthly savings.
Budget Snapshot for a 70-Year-Old Middle-Class Retiree
Below is what a typical monthly budget might look like.
Category | Monthly Amount |
Housing | $1,850 |
Healthcare | $650 |
Food | $700 |
Transportation | $900 |
Utilities and Services | $370 |
Entertainment and Hobbies | $280 |
Other (clothing/misc) | $300 |
Total | $5,050 |
Considerations and Planning Tips
Healthcare will rise: Medical needs and the bills that come with them tend to grow significantly after age 75. In fact, healthcare costs are already climbing: as of June 2024, medical care prices rose 3.3% year-over-year, slightly outpacing overall inflation at 3%, according to Health System Tracker. Since expenses often accelerate later in retirement, planning ahead for rising healthcare costs is more important than ever.
Housing flexibility: Strategies like downsizing, moving to tax-friendly areas or taking a reverse mortgage may offer savings.
Tax and inflation protection: Staying aware of Social Security cost-of-living adjustments and tax bracket changes can preserve spending power.
Guard against longevity risk: Given high life expectancy, make sure your savings last via annuities, diversified accounts and smart withdrawal strategies.
A 70-year-old middle-class retiree typically spends around $5,400 per month, with housing, healthcare, food and transportation making up most of the budget. Understanding where the money goes and how spending changes with age helps retirees better align their savings and lifestyle goals and ensures they don’t run out of money too quickly. By planning thoughtfully, staying flexible and adjusting for healthcare and longevity, retirees can enjoy financial confidence well into their golden years.
More From GOBankingRates
I’m a Realtor: This Is Why No One Wants To See Your Home
3 Things Retirees Should Stop Buying To Save Money Amid Tariffs
How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too
7 Wealth-Building Shortcuts Proven To Add $1K to Your Wallet This Month
This article originally appeared on GOBankingRates.com: How Much the Average Middle-Class Retiree Spends Monthly at Age 70
