Retirees aged 65 to 74 spend roughly $ 53,000 per year . 29
How Spending Evolves in Retirement
When we think about retirement , it ’ s often as if our golden years are one unchanging block of time . The truth is , your lifestyle when you first enter retirement will likely be vastly different than in your later years . This discrepancy is also reflected in retirees ’ spending : According to SoFi , retirees aged 65 to 74 spend roughly $ 53,000 per year , while those aged 75 and older spend less than $ 42,000 annually , on average . 29
As retirees ’ needs change throughout retirement , so does their spending .
There are also financial steps you can take to help mitigate the high costs of healthcare . We previously mentioned health savings accounts , which offer tax-advantaged savings specifically for healthcare expenses . Long-term care insurance can also reduce your healthcare spending in retirement . This kind of insurance is intended to cover the costs of care when you have a chronic medical condition , disability or disorder , including hospice or respite care , residential care facilities and home-based care . However , you can ’ t purchase a policy only when you need assistance : Chances are you won ’ t qualify for long-term care insurance if you already have a debilitating condition . Most people with long-term care insurance buy it in their mid-50s to mid-60s .
FOOD AND ENTERTAINMENT
Food and entertainment expenses include activities like eating in or dining out , going to museums or the movies , and hobbies . Just as with transportation , expenses in this category tend to decrease through retirement over time . According to SoFi data , people aged 65 to 74 spend $ 6,992 per year on food and $ 2,556 per year on entertainment . By comparison , those over age 75 spend only $ 5,294 and $ 1,889 annually on food and entertainment , presumably as interest in and ease of driving or flying diminishes . 29 While these are only national averages and might not reflect the retirement experience you ’ re interested in , they ’ re a good starting point as you consider your own plans .
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