Here’s How Much the Average Retired Person Spends Per Month. Will You Have Enough? | Global News Avenue

One of the most pressing questions that I face is: how much do I need to maintain one A comfortable lifestyle Once I stop working? To answer this question, you must understand the average monthly expenses of retired individuals and assess whether your savings are sufficient.

Generally speaking, on average, it costs about $5,000 per month after retirement.

Average monthly cost for retirees

The U.S. Bureau of Labor Statistics (BLS) provides valuable insights into the spending model of retired families. According to Consumer Expenditure Survey (CES)the average retired family spends about $5,000 per month. Please note that this information is based on data collected on spending in 2023 and is up to date. This includes totals, but is not limited to:

• housing. Fees include mortgageproperty taxes, utilities and maintenance. Retirees who pay off their mortgages usually face lower monthly fees.
• Health care. Even if there is Medicare coverageRetirees’ budgets may be compromised by out-of-pocket expenses, copayments, prescription medications and long-term care.
• food. Food spending at retirement tends to drop slightly compared to the previous year. However, meals and special dietary needs can affect individual costs.
• transportation. While commuting costs are falling, retirees can still spend on vehicle maintenance, insurance, fuel and recreational travel.

Are your savings enough?

One benchmark for evaluating your retirement ready is your total savings and portfolio. Data from Empower reveals median 401 (k) The balance for individuals aged 60 to 69 is $210,724. Perhaps more important is the data showing that the average balance of this age range is $573,624.

It is important to consider how this balance decreases by age. Empower, for example, also reported that the median balance for those in the 1970s was $106,654. This is a function of (1) an individual leaving the workforce and paying retirement savings to other retirement accounts, and (2) the need to cancel the retirement account. Consider the above statistics on the need for $60,000 per year (and all incomes may not be earned in addition to retirement benefits).

Strategies to bridge the gap

If your current retirement forecast indicates a gap, don’t panic. There are some actionable steps you can take to ensure financial security:

1. Maximize 401(k) contribution. In 2025, the Internal Revenue Service (IRS) allows individuals aged 50 and older to contribute $31,000 per year to 401(k).
2. Contribute to the IRA. In addition to employer-sponsored programs, individuals can also be in traditional or Rose Individual Retirement Account (IRA).
3. Increase social security benefits. You delay requests every year social Security Beyond your full retirement age, the income increases by 8% until you are 70 years old.
4. Assess retirement expenses. Consider what you need to spend money later in your career. Reducing costs may be as good as increasing revenue.

Bottom line

The average retired household in the United States spends about $5,000 per month, covering housing, health care, food, transportation and discretionary expenses. With a 401 (k) balance for individuals aged 60 to 69, priced at $210,724, applying a 4% withdrawal rule provides a balance of approximately $702 per month, when combined with the average monthly Social Security benefit to $1,976, but The typical payment fee is not yet afforded.

If you find yourself on this boat, consider some techniques to increase your savings or reduce your spending.