Average spending by age for those 55 and over: How do you stack up?

Retirement spending is never static; it evolves through three phases: the go-go, slow-go, and no-go years.

If you budget the same way at age 75 as you did at 55, you might find yourself saving too much for expenses that tend to decline over time. You'd be better off allocating some of those savings to rising healthcare costs.

Here is a breakdown of how average spending shifts across key categories as Americans age, based on the latest U.S. Bureau of Labor Statistics (BLS) data. These figures are for U.S. households, not individuals. As the table demonstrates, total average spending in these categories declines by almost $17,000, from $64,767 at ages 55-64 to $47,770 at age 75 and older.

Housing: The burden softens

Unless you paid off your mortgage or have a cheap rent-controlled apartment, it's likely that housing accounts for the largest portion of your budget. That is still true in retirement, but what’s new is that it’s a smaller overall portion.

The average household between the ages of 55 and 64 spent $27,019 on housing in 2024. That compares to $21,999 for those 75 and older, according to the U.S. Bureau of Labor Statistics’ Consumer Expenditures in 2024 report. A good chunk of this drop is likely due to a decrease in household size; as you age, children grow up and move out (though not always). Marriages may end in divorce or a spouse may die.

Another explanation for this housing expense relief? People often downsize, relocate to cheaper places or pay off their mortgage when they retire. That makes their housing more affordable.

Healthcare: The cost increases

Age also affects the cost of healthcare. However, unlike housing, it tends to increase as we age. How much? People between the ages of 55 and 64 spent $6,711 on health care in 2024. It was $7,918 for those 75 and older, according to the BLS.

It shouldn’t come as a surprise. As people get older, they tend to require more healthcare and suffer from more chronic diseases that require prescription medicine.

The need for long-term care and caregiving also drives up the costs of healthcare. Fidelity Investments estimates that a 65-year-old retiring in 2025 will spend $172,500 in health care over his or her lifetime. That includes Medicare and excludes any stays in a long-term care facility.

Transportation: Downsizing on wheels

Whether your transportation costs will decline in retirement depends on your lifestyle. If your hobby is collecting classic cars, taking long road trips, or buying an RV and seeing the country, then your transportation costs will likely increase.

But for most retirees, these costs diminish substantially. Most retirees no longer commute. Moreover, many households give up a second car in retirement, saving money on insurance and maintenance.

Either way, one thing you can take to the bank: the older you get, the less you’ll spend on this category.

People in their mid-50s to mid-60s spent $15,085 on transportation in 2024, compared to $11,414 for people in their mid-60s to 70s. People 75 and beyond spent even less, roughly $6,855, according to the Consumer Expenditure Survey data.

Lifestyle expenses

Lifestyle creep is real in retirement, especially in the early go-go days. New retirees are so excited to have free time that they often rush to catch up on deferred goals and dream vacations. Before they know it, they burn through more of their savings than anticipated.

Keeping lifestyle creep in check is important, especially since retirement can last decades.

The good news is that even if you can’t get a handle on lifestyle creep, it's a set of expenditures that is likely to come down with age. In 2024, people between 55 and 65 spent $10,214 for food, $3,706 for entertainment and $2,032 for apparel, for a total of $15,952 on "lifestyle" expenses. Once they hit their late 60s and early 70s, those expenditures decreased to $8,483, $3,122 and $1,377, respectively, for a total of $12,982. By 75 and beyond, spending in all three categories declined.

Of course, "food" is a broad category that includes necessities like groceries as well as discretionary spending on dining out.

While lifestyle spending tends to drop as you age, rising inflation means each dollar buys less, offsetting some of those savings. For June 2026, the Consumer Price Index increased 3.5% year-over-year.

A guide, not a rule

Planning for retirement can seem like a daunting endeavor. There are a lot of moving parts — your budget being one of them. Having an idea of what other people are spending based on their age can be a starting point, but how much you’ll need will depend on your unique situation.

The good news is that discretionary spending typically cools down as you age, giving you more breathing room to cover rising healthcare costs.

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