![\"A](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/11\/5-secret-tax-breaks-every-retiree-needs-to-know.jpg\")
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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 Even if you\u2019re considered middle class in retirement<\/a>, making ends meet isn\u2019t easy.\u00a0<\/p>\n Overall, 32% of retirees say their standard of living is lower in retirement than it was during their working years, while only 10% say it\u2019s higher, according to an Employee Benefit Research Institute (EBRI) survey<\/a>. Part of that could have to do with tight budgets. <\/p>\n Forty-six percent think they didn\u2019t save enough for retirement, and rising costs are likely making that harder; in 2020, just 17% said their current spending is more than they can afford, but that went up to 27% in 2022, the most recent survey year.\u00a0<\/p>\n<\/p>\n However, even if you find yourself early on in retirement with a relatively tight budget<\/a>, such as at age 68, there are ways you can potentially ease that pressure.\u00a0<\/p>\n Spending Patterns at Age 68<\/p>\n While there\u2019s limited data on middle-class retiree spending<\/a> specifically at age 68, we can approximate these amounts based on data across different age ranges from the Consumer Expenditure Surveys<\/a> (CE) program from the U.S. Bureau of Labor Statistics.<\/p>\n Note that the CE surveys<\/a> are based on spending of a combined consumer unit \u2014 often a household unless living with roommates, for example \u2014 and the ages reflect the person first mentioned by the survey respondent regarding who rents or owns their home. For those ages 65 to 74, the survey includes an average consumer unit size of 1.9 people, so the figures generally reflect spending for a couple.<\/p>\n For those ages 55 to 64, with an average consumer unit size of 2.2, average annual spending totals $83,379. Among the 65 to 74 cohort, average spending drops to $65,149.\u00a0<\/p>\n While part of the drop may have to do with the slightly smaller household size \u2014 2.2 versus 1.9 \u2014 for simplicity\u2019s sake, we can assume that these averages roughly equate to spending for a couple. And if we assume average spending roughly maps to the midpoints of these ranges, that means average annual spending for a couple at age 60 equals $83,379, dropping down by 21.9% to $65,149 by age 70.<\/p>\n From there, we can approximate spending at age 68 based on a compounding decline of 2.44% per year, meaning spending for a couple at 68 is roughly $68,466.\u00a0<\/p>\n<\/p>\n On a monthly basis, this equals approximately $5,700 in spending. The exact rate of spending decline does depend on household size, but this is likely in the ballpark of what a 68-year-old, average middle-class retired couple spends per month.<\/p>\n \u201c$5,700 a month looks okay on paper, but in reality, it\u2019s tight, especially for a retired couple. It\u2019s not that you can\u2019t live on that amount, but it usually means your choices are limited,\u201d said James Comblo, CEO of FSC Wealth Advisors<\/a>. \u201cThings like travel become a treat, home projects get delayed and gifting to kids or grandkids happens less often.\u201d<\/p>\n Typically, housing takes the largest chunk, with those ages 65 to 74 spending around $1,851 per month on all housing-related costs, including utilities and maintenance.\u00a0<\/p>\n Transportation is another big expense<\/a>, averaging around $908 per month for those ages 65 to 74 (still reflecting a 1.9-person household). This includes car payments for some, as well as other common expenses like gas and insurance.<\/p>\n Healthcare costs can add up too, with the 65-to-74 cohort spending around $661 per month. This might inch up as you age, but on average, those over 75 only spend around $17 more per month. That said, the average consumer unit shrinks from 1.9 to 1.6 for those 75 and older, so per-person healthcare spending likely accelerates a bit more.<\/p>\n Making the Most of Your Retirement Spending<\/p>\n While these averages might give you a general frame of reference, the reality is that everyone\u2019s retirement finances are highly context-dependent.<\/p>\n<\/p>\n \u201cThe Bureau of Labor Statistics isn\u2019t measuring your unique situation. Living in the Midwest with no mortgage has a very different feel when compared to someone paying property taxes in New York,\u201d said Comblo.<\/p>\n Instead of getting too caught up in seeing how you compare to others, think about what you want your own retirement to look like and plan accordingly.<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
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