US retirees spend nearly a third of their budget on housing
In 2024, the average retired person in the U.S. spent $59,616 annually, with nearly one-third—$22,079—going toward housing-related costs. This makes shelter the largest expense for retirees and a key area to focus on when managing retirement budgets. Other major expenses included transportation ($9,244), food ($8,021), and healthcare ($7,735). Together with housing, these four categories accounted for 79% of typical retiree spending. Experts suggest that retirees can reduce costs by shopping around for better insurance rates or taking advantage of senior discounts. The data comes from the Federal Reserve's Consumer Expenditure Survey (CES) and highlights how significant a portion of retirement income is tied to housing, especially as many older Americans still carry mortgages.
Topics: consumer expenditure housing costs retirement spending