"Understanding the Monthly Expenses of Retirees: A Closer Look at Average Spending for Individuals 65 and Older"
The average income of someone aged 65 and older in 2021 was $55,335, with average expenses of $52,141 per year or $4,345 per month, according to the Bureau of Labor Statistics. Younger retirees had higher expenses than older retirees, with those aged 65-74 spending $4,870 per month and those 75 and older spending $3,813 per month. Retirement experts recommend using the 80% rule, which suggests using 80% of pre-retirement income to cover expenses in retirement. The biggest retirement expenses are housing, transportation, healthcare, food, and utilities. It's important to consider individual spending habits and current expenses when planning for retirement.