Posted on 11/13/2023 4:30:20 AM PST by where's_the_Outrage?
The average American 65 years of age and up earns an annual pre-tax income of $60,359, and that same group spends $57,818 yearly, or $4,818 a month, according to the Bureau of Labor Statistics (BLS).
That income doesn’t leave a lot of extra cash for unexpected expenses or emergencies. The average American aged 65-69 has about $200,000 in retirement savings, according to an analysis of Federal Reserve data, and might still need to work even when they reach retirement age. High expenses often play a role.
Watch for these four categories of spending that eat into monthly expenses.
1. Housing Home costs represent the largest expense for retirees, accounting for 36% of their annual expenses, BLS figures show. Retirees who want to gain a leg up may want to consider downsizing as house prices remain high.....
2. Transportation If you aren’t working as much or even at all, you might want to swap the car for public transit or a bicycle. Transportation is the second-largest spending category, making up $8,172 in annual expenses for retirees, according to BLS figures......
3. Health care Health spending makes up $7,540 in annual spending for retirees......
4. Food At $7,306, food expenditures account for over 12% of annual expenses for those 65 and over. Meal planning is one way to avoid overspending since it involves shopping for food items as opposed to regularly eating out — which can be an expensive habit.
(Excerpt) Read more at moneywise.com ...
And Taxes are a big part of expenses.
But Transportation, if you plan right that transportation expense include leisure travel.
$600 a month for food? One person? I don’t spend anywhere near that.
Insurance premiums are yugely up along with AOC’s GND utility costs.
Public transportation is too dangerous and totally inconvenient.
I’m above average!.........
“$4,818 a month”
“IMHO before you retire you should pay off your home, “
Looks like I am on track for retirement at age 60. My current estimated income is $4800 a month with house paid off.
Taxes are by far and away the largest expense I have. Every two years I pay enough in just to property taxes alone to buy a new base model corvette. Needless to say I don’t have the new car, but the government is busy using my money against my best interests.
I’m 77, retired, and I couldn’t begin to deal with those kinds of expenses, and yet I manage.
This article is crap. Old people with bad knees, heart disease, etc getting rid of their cars and going to bicycles? The author of this is not just dumb, but AOC dumb.
$600 a month for groceries. That’s easy to do.
What the (bleeeeeeep).
I know retirees paying that much annually just for health insurance. And that's before they use it.
Love to see the source for that stat...
“$600 a month for groceries. That’s easy to do.”
Especially if someone thinks they are a wine aficionado
They key is to enjoy simple pleasures. My dad is 80. He like to read, do crossword puzzles and watch sports on tv. That’s about it. He comes over 3 times a week for dinner and hanging out with his grandkids.
He doesn’t want to travel, doesn’t golf, doesn’t restore old cars, etc. a good game, good glass of bourbon, and he’s set. Of course he did work hard his whole life, military then corporate world. The house is paid off and he doesn’t drive anymore. I guess he’s lucky his kids settled down in the same town. That doesn’t always happen.
His health isn’t great, but that’s life. Hopefully he hangs on for a while enjoying his 7 grandchildren.
“before you retire you should pay off your home”
Not true for everyone.
I have 1.86%-fixed on $140K which is less than the appreciation of income and market investments.
Even Zuckerberg has a mortgage.
# 5 - Booze
I have two 10+ year old cars that are in very good mechanical shape. Transportation is not my cost problem.
Insurance, while necessary, eats up too much of my budget.
Life Insurance term policy.
Comprehensive Auto Insurance
Medicare
Medicare Supplemental Policies (Plan F, both have had serious health issues 5 and 8 years back)
Home Owners Insurance
Flood Insurance (Inner Banks North Carolina)
Next on the drive me nuts list is Cable/Internet and Cell/iPad phone and data lines. Way too much money and I am not ready to cut out sports coverage and internet everything.
Appliance repair and replacement. My last two refrigerators have lasted 7 years each and prior to that I had a builder’s grade Roper that I bought in 1978 that was still running when I sold it with a house in 2012 — 34 years. Washers and dryers are similar in their short life. A/C, don’t get me started.
Old and feeble? Get a bicycle or fight the crazies on public transportation. Quite a solution.
1. Housing - Bought a hunk of land in rural flyover country and am learning to garden.
2. Transportation - Bought a hunk of land in rural flyover country and am learning to garden so I don't have to run to the store every few days for food.
3. Health Care - Bought a hunk of land in rural flyover country and am learning to garden healthy organic food.
4. Food - Bought a hunk of land in rural flyover country and am learning to garden.
$22/yr for 8 acres in rural flyover country
This time of the year Nov- April my biggest expense is heating fuel I have a 500 gallon tank, and that really cuts into my budget
I’m sensing a theme here…
“The average American 65 years of age and up earns an annual pre-tax income of $60,359,”
Average ain’t Median.
Nearly 1/2 of retirees live on SS alone.
Median benefit is $1,250.
That $5K monthly number will come down dramatically over the next decade or so as many folks have tapped their retirement savings to get through Bidenomics, can’t afford to buy much less pay off a home, and skyrocketing healthcare costs.
And all the Goobermint Teat Suckers that lived on bloated
salaries and were given un-sustainable public pension are gonna be laughing at the Tax Donkeys that paid for it all for them.
It’s gonna get ugly real fast.
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