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Don't Get Caught Off Guard: Typical Retirement Expenses To Prepare For

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Unfortunately, not all Americans know what to expect regarding living expenses during their retirement years.

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Common Retirement Expenses

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1. Food

Those aged 65 to 74 spent $6,864 per year, and those over 75 spent $5,274. These food expenses include groceries, alcohol expenditures, and meals eaten at restaurants.

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2. Housing

Housing expenses, such as mortgage payments, insurance, and maintenance costs, are among the highest costs retirees face.

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3. Healthcare

Americans’ healthcare costs — including health insurance, medical services, medical supplies, and prescription drugs — increase as they grow older.

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4. Transportation

Many retirees want an action-packed retirement full of entertainment, socializing, visiting family, and traveling the country.

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5. Entertainment

Between ages 65-74, annual entertainment spending was $3,080. After age 75, it decreased to $1,749 per year.

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