Key Takeaways
In 2023, average spending for those ages 65 and older was $60,087 per year, or slightly more than $5,000 per month.
The largest spending categories were housing, clocking in at $1,787 per month, transportation ($752.75), healthcare ($668.92), and food ($642.84).
Spending also included an average of $241.50 per month on entertainment, such as shows, sporting events, club memberships, camping, and pets.
Comparison is often called the thief of joy, but when it comes to retirement, it can be a valuable tool, helping you understand how much you might need to save and spend in retirement to maintain your preferred lifestyle.
According to the latest available federal data, which is from 2023, total spending for those ages 65 and older in the United States averaged $60,087 per year. This comes out to just over $5,000 per month. By far the biggest spending categories were housing, food, transportation, and healthcare. However, those 65 and older—many of whom are retired, but some who may not be—are also spending a large portion of their income on fun and entertainment.
To develop you own spending plan for retirement, see how your purchasing habits stack up to those age 65 or older.
Housing, Food, and Transportation Costs
The largest share of annual expenses goes toward housing, at $21,445 per year, or about 36% of annual spending.
Total monthly housing costs: $1,787.09
This is further broken down into:
Rent/mortgage/taxes/maintenance: $12,545Utilities/fuel: $4,307Furnishing/housekeeping/other household expenses: $4,593
Transportation is the next largest category of expenses, totaling even more than food. Transportation costs $9,033 per year, or about 15% of annual spending. This category includes vehicle purchases (used or new), as well as fuel, maintenance, insurance, and any public transportation costs.
Total monthly transportation: $752.75
Those ages 65 and older averaged a total of $7,714 per year on food, or about 12.8% of annual spending. That included food both at home and away from home. Alcoholic beverages are also included in monthly food costs, but these expenses are minimal, totaling just $41.17 per month.
Total monthly food costs: $642.84
Healthcare Costs in Retirement
Healthcare was also a large spending category for those ages 65 and older.
Older adults generally spend more on healthcare than younger individuals, as they’re more likely to deal with health issues and may be charged higher health insurance premiums.
On average, those 65 and older spent $8,027 on healthcare in 2023, which is equal to about 13.4% of annual spending.
Total monthly healthcare spending: $668.92
The largest portion of medical expenses was spent on health insurance itself:
Fast Fact
According to a 2025 study from Fidelity, the average 65-year-old will spend $172,500 on healthcare during their retirement.
Other Spending in Retirement
Outside of those four big categories, retirees spent an additional $13,870.
Entertainment was one of the larger categories, at $2,898 per year.
Total monthly entertainment spending: $241.50
This included movie tickets, pet care, equipment for camping or exercise, sporting event costs, and more.
Other spending also included expenses for reading, such as purchasing books or e-book readers, tobacco products, and education expenses.
Other large categories of spending were cash contributions, which includes alimony, child support, supporting students away from home, and charitable donations ($3,132 per year).
Total monthly cash contributions: $261
Lastly, the personal insurance or pensions ($3,277 per year) category comprises of insurance costs like life insurance but excludes car, health, and home insurance.
Total monthly personal insurance and pension spending: $273.09
The Bottom Line
In 2023, the average person in the U.S. age 65 or over spent just over $5,000 per month. Of this, the largest portion was spent on housing, including rent or mortgage, utilities, and more.
The other top spending categories of spending were transportation, healthcare, and food. While not all those ages 65 and older are retired, these spending patterns might be able to provide an approximation of what the average American currently spends in retirement, as the average retirement age for both men and women is below age 65.