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 ...
Did they charge extra?
The $600 monthly for food is close to our number—me, the wife and the dog.
We could cut it down a bit because it usually includes ingredients for one high end meal (with leftovers) a week—and my wife can’t resist buying fancy treats for the dog.
;-)
Good post—median is the useful information for sure.
What would also be useful information is the sources of income—some is social security, hopefully some is interest/dividends on investments, some may be part time job(s).
That $200k saved/invested is also an average—not a median.
The median may be zero!
I left FL because I knew I was going to be priced out of the game.
Our property taxes in a poor town in Oklahoma are ridiculously low -— $200/yr! Of course, we live in a small (1000 sq ft) fixer upper, but it’s a good solid little house. We spend about $1000 a month on food for the two of us, plus my son is staying with us right now, but he doesn’t eat much; and about $400/mo on medication. I could spend less on groceries, I know, tho food is high here. Thank the LORD our house and cars are paid for!
Your post sounds like a testimony from the government. And you can own nothing and be happy.
The flies came with the meal no xtra fee
I am retired my hone/car is paid for, don’t have 200k in 401k, I wish. But I make due. I stock up on food about once a quarter. Gas is the biggest expence.
Conversely you could have a new home built or buy one. Repair and replacement costs hopefully won't be an issue for a decade or two.
Sounds like a lovely life! Hope you and his grandkids have many more years to enjoy each other.
Not sure how an e-bike would handle a couple of sheets of plywood. Or a weeks worth of groceries in the rain or taking a spouse to a doctor. E-bikes are toys. I’ll stick to my gas powered vehicles.
Your taxes, as my Mom would have said, are a dream! Ours in NC are 3K, but our house is paid. We do have 2 car payments (soon to be only one when the leased car is returned) and spend 600 a month for us two. Yes, we could pay less, but I am a grandma who cooks sometimes for kids and the grands, and hubby and I get a humble weekly allowance for whatever need or want, personally. That’s enough for us.
Each person has to be comfortable with their own situation. I’m more comfortable with no debt.
Or, are you living where prices are insane, or buying fast food.
I shop for myself. Sensibly. No sodas, bottled waters, high end imported and prettily labeled items, nothing pre-cooked in the store, and I don’t like caviar. Or alcoholic beverages. I spend about $300 at most, in a month.
I’ve never been stupid about money. No mortgage, no plastic, no car loan, and the property taxes are peanuts.
When I have kids they won’t be paying college tuition either. :)
Waste not, want not.
I am over 65 and I can’t imagine having that much money to spend. I’d be thrilled! I wouldn’t know what to do with it all.
That is what I was going to say. How much is the total of Bidenflation? 100%? Plus, I can’t believe Biden thinks Bidenomics is something to own and celebrate. Bidenomics means inflation, excessive government spending, sky high prices and out of control fuel costs.
Agreed. I’m in my 70s. One bad spill on a bike would probably cripple me for life. I had a hip replacement several years ago, and they said a bad fall or simply running could cause irreparable damage and I’d likely never walk again.
Definitely. And those who dream of a no-private-car future - just driverless cars taking you everywhere - have never been a mom. The amount of stuff you haul around - school stuff, sports stuff, diapers, strollers, etc. - it will never work.
I was uncertain about being able to retire. A friend suggested his financial advisor to me. The guy had been very helpful.
It turns out I had saved much more than that over the years. He has helped me set up a good money flow and investment strategy. Unless Brandon tanks the economy, I’ve should be in good shape financially.
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