Posted on 03/19/2024 5:00:06 AM PDT by where's_the_Outrage?
The average American 65 years of age and up earns an annual pre-tax income of $55,335, and that same group spends $52,141 yearly, or $4,345 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.
These four categories of spending tend to eat into monthly expenses — here’s how you can shave some zeros off them.
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 at all – you might want to swap the car for public transit or a bicycle. Transportation is the second-largest spending category, making up $7,160 in annual expenses for retirees, according to BLS figures.
3. Food
At $6,490, 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 instead of regularly eating out — which can be an expensive habit.
4. Healthcare
Health spending makes up $7,030 in annual spending for retirees. One way to cut costs when health issues arise is to get easily affordable preventative care. That means staying up to date on screenings and vaccinations.
(Excerpt) Read more at moneywise.com ...
The smartest thing I did for retirement was to stay in the Army Reserve, the pay is OK but the Tricare is super taking care of my wife and daughter.
You’re better off than me. I live 15 minutes away from a 900 resident town. It does has a tiny grocery store, but really we drive 45 minutes to the nearest Wal Mart or HEB. We do have a doctor in town that we go to, but real medical services are 45 minutes away.
I’m putting thousands of miles on my car. About 25,000 a year.
Anywho... Good luck with your retirement. Enjoy.
I think I’d rather just stay healthy until I’m called home.
Yeh, that’s tough. We are 10 minutes from Lowes, Wallyworld, Ingles, Dominoes etc.
I am on Medicare also, no private insurance but do have Part F supplement plan and typically owe only $38 for a standard office visit. Why the huge disparity? I could not afford the expenses you’re talking about.
But Part B is not optional. It will be taken out of your SS check. Use it or not.
Ooh. That’s nasty.
Lots of people do not realize they are paying it because it never shows up unless you scan your SSA-1099.
And many seniors do not because they make under the amount needed to file federal income taxes.
Interesting, thanks.
Of course, I’m expecting that when I’m about to become eligible they’ll jack the minimum age up a decade anyway.
No ideas. My point was the are partners in gains, not partners in losses.
Yes, they could do it themselves for free and I have even offered to show them how but they prefer to come over to my place once a year and hand over their little file and say, "you do it dear."
Maybe it is the free cookies. :)
I pay $0 for a primary dr visit and $20 copay for specialist. Nothing for my BP, thyroid and cholesterol meds. I shop at several different grocery stores each week to get their sales and bogos. I also own several pets and spend more for their food than for ours. I live in Florida and have nothing but wonderful things to say about my Humana insurance. Have you considered moving?
Your point is well taken especially when it comes to the sale of property.
I have NEVER owed a nickel to my doc until this year, my blood panel has also been covered completely YET this year they also are charging $135.00 JEEZE!!! all I can say is i am glad I only have these costs every 3 months HOWEVER my insurance and Medicare used to cover ALL costs!!I
Are you sure it isn’t a deductible you’re paying (at beginning of year)?
” I live in Florida and have nothing but wonderful things to say about my Humana insurance “
It’s easy to find the opposite opinion about Humana HMOs, if that’s what you have; in fact, some hospital systems have thrown them out.
I have PPO for my insurance I pay extra for the PPO I was just surprised at the increases, I shouldn’t have been surprised but I was, Bidenomics!!!
OH I did not think about that you are probably right THANK YOU!!! Silly me a deductible foot out of mouth!!! LOL, LOL
Bkmk
Thank you for your response. Like you we have come to trust in the Lord Jesus and let him handle things. As far as debt is concerned we paid off our last in Dec 2022. It was a long hard slog and quite exhausting as it took 5 years of making that our priority. We thought about that day when we would finally be debt free, paid off mortgage and no other debt and were trying to devise a way to celebrate. Nothing came to mind, but I will say that when our last loan was paid off (my truck) and the balance revised itself to zero, unexpectantly these invisible chains that I wasn’t aware of fell off my shoulders. Debt free at last I had some kind of debt for 46 years now we have almost a years’ worth of income in savings and are putting almost 50% or our income into investments or savings. Life is good Proverbs 22:7
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