Preparing for your Golden Years

#10: Fuel

• Avg: $1,220 per year

• To put this in perspective, this is over 60% lower than what working adults spend on gas, so it’s not that bad.

• But remember, prices won’t always be as low as they are now.

#9: Eating Out

• Avg: $1,319 per year

• Again, this is 60% lower than those in their prime.

• While many erroneously believe that retirees would go out to eat more, by the time you reach 75, cooking at home becomes the norm.

#8: Entertainment

• Avg: $1,422 per year

• This is less than half what those between 45 and 54 are spending per year.

• As with eating out, many over 75 simply prefer staying in for entertainment.

#7: Vehicle Purchase

• Avg: $1,783 per year

• The BLS calculated this by using the net outlay needed for vehicle purchases.

• As with the others, this figure is less than half of those in their prime working years.

#6: Car Maintenance

• Avg: $1,805 per year

• Though you’re driving less, you still need to pay for upkeep on your car.

• This figure is 40% lower than those in their prime working years.

#5: Cash Contributions

• Avg: $2,817 per year

• This includes money given to any organization or individual outside of your household.

• With the extra money some retirees have, this is actually an area where those over 75 have markedly higher expenses.

#4: Food at home

• Avg: $2,825 per year

• Again, this level of spending is 40% lower than when kids are living at home.

• However, on a per-person basis, this is actually 30% higher than when you have kids!

#3: Utilities

• Avg: $3,022 per year

• Fewer people at home means less energy being used, which equates to a 30% lower bill than those with children.

• However, many retirees end up heating large homes for no reason, as there are only one or two people living at home.

#2: Healthcare

• Avg: $4,910 per year

• This is the big expense many retirees worry about. Costs are 54% higher than those age 35 to 44.

• On a per-person basis, costs are a whopping 220% higher than those aged 35 to 44.

#1: Housing

• Avg: $6,882 per year

• Not everyone has paid off their mortgage—or even owns a home—in retirement.

• This figure also includes property taxes, which must be taken into consideration.

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