US retirees blow nearly $1 of every $3 on a single expense — here's what it costs you each year

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For astir retirees, their biggest interest is the size of their nest egg. Having capable wealth to unrecorded comfortably and not outlive your savings is astir apt a apical priority. But the question astir however overmuch wealth you request to prevention hinges connected another, possibly arsenic important question: How overmuch bash you program to spend?

After all, your yearly fund determines the "magic number" you request to target. And for a amended thought of what your status fund could look like, it's adjuvant to see the fund of a emblematic retiree.

With that successful mind, here's a person look astatine the astir caller information from the Federal Reserve's Consumer Expenditure Survey (CES) (1).

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A emblematic status fund

The mean retired idiosyncratic spent astir $59,616 during 2024 (the astir caller twelvemonth surveyed by the Fed). That's astir $5,000 a month.

Perhaps unsurprisingly, the biggest enactment point connected this fund is housing. A emblematic retiree spent $22,079 annually connected shelter-related costs successful 2024. That outgo unsocial is astir 37% of the full mean budget, oregon $1 successful each $3 spent during the people of a year.

Those numbers suggest that If you're looking to tighten your budget, lodging could beryllium your apical priority. And you wouldn't beryllium alone. In fact, astir 41% of Americans betwixt the ages of 65 and 79 had a owe connected their superior home, according to a 2023 study by the Joint Center for Housing Studies of Harvard University (2).

So, if you're 1 of these owe holders, buying astir for a bully involvement complaint could marque a meaningful difference.

As for those who ain their location escaped and clear, you whitethorn privation to find different ways to little costs. Shopping astir for a bully location security policy, for instance, could determination the needle for your yearly budget. Plus, referral services similar OfficialHomeInsurance.com marque it easier than ever to find the sum you request without the hassle of calling aggregate providers for quotes. Simply capable retired a fewer details and you could prevention an mean of $482 a year.