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Commitment to Our Readers<\/p>\n
GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years Trusted by At age 67, those born in 1960 or later qualify for what\u2019s considered their full retirement benefit from Social Security.<\/a> That means you get the full amount you qualify for, instead of having benefits reduced if you take them early, starting at age 62.<\/p>\n While waiting until at least age 67 \u2014 or up to 70 to earn delayed retirement credits<\/a> \u2014 can result in more monthly income, the reality is that the average middle-class retiree takes Social Security earlier.<\/p>\n On average, people claim Social Security benefits around age 65, although that\u2019s been trending up slightly over the past few decades, according to the Center for Retirement Research at Boston College.<\/p>\n<\/p>\n By still claiming Social Security early, combined with relatively modest retirement savings, the average person often faces a tight retirement budget.\u00a0<\/a><\/p>\n The Median Retirement Savings Balance at Ages 65-74<\/p>\n The median retirement savings balance for a household led by someone ages 65-74 is $200,000, according to the Federal Reserve. While that might sound like a lot, keep in mind that it likely needs to last 15-30 years or so.<\/p>\n The upside, though, is that expenses tend to fall in retirement, such as if you\u2019ve paid off your house and cars by then.\u00a0<\/p>\n Altogether, these factors generally mean that average spending by age 67 is significantly less than pre-retirement, and spending continues to fall further into retirement.<\/p>\n How Much the Average 67-Year-Old Retiree Spends<\/p>\n To estimate the average middle-class retiree spending at age 67, we can compare spending amounts across different age ranges from the Consumer Expenditure Surveys<\/a> (CE) program from the U.S. Bureau of Labor Statistics. For those ages 55-64, average annual spending is $83,379, and for those 65-74, the average drops down to $65,149.\u00a0<\/p>\n If we assume that these averages roughly correspond to the midpoint of these age ranges, that means average annual spending at age 60 is $83,379, and that drops down by 21.9% to reach $65,149 by age 70.<\/p>\n Based on a compounding decline, that means spending falls by about 2.44% per year, and by age 67, spending would be about $70,139. Monthly, this results in roughly $5,845 in spending for a middle-class retiree at age 67.<\/p>\n<\/p>\n Housing is usually the largest expense, with someone ages 65-74 spending the equivalent of about $1,851 per month. That might not always be the exact monthly amount, considering variable costs like maintenance, but it\u2019s something retirees should plan for.\u00a0<\/p>\n Some other big costs include roughly $908 per month on average for transportation, considering factors like gas and insurance, along with car payments or the monthly equivalent for a cash purchase of a new car.\u00a0<\/p>\n<\/p>\n Healthcare takes a big bite too, costing roughly $661 per month for those ages 65-74. At 67, you might find yourself spending slightly less, as healthcare costs<\/a> tend to increase later in life, but the difference is small. On average, households ages 75 and older spend only about $17 more per month than those ages 65 to 74.<\/p>\n Why the Average Retirement Budget Feels Tight<\/p>\n Overall, necessities can add up quickly in retirement. Spending the average $5,845 per month at age 67 might not provide the relaxing retirement lifestyle of your dreams. To achieve that, you likely need substantially more savings to create a larger income stream.<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
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