Retirement Costs: How Much Seniors Spend on Essential Needs

While older Americans generally spend less than younger Americans, Americans over 65 have seen a significant increase in spending recently. In fact, total spending for those over 65 increased by 43.1% between 2012 and 2022.

That’s according to an analysis of the Bureau of Labor Statistics’ 2022 Consumer Expenditures by Savings Account Survey, a subsidiary of LendingTree, which crunched the numbers to see how much people over 65 spend on average per year in several key categories outside of Housing and health.

The biggest increase in non-health-related spending for adults over 65 was on groceries, which increased by a whopping 44.4% between 2012 and 2022. You’ve probably noticed that food prices have risen sharply in recent years. According to the U.S., the price of food is expected to rise by 11% between 2021 and 2022. The Government Accountability Office has said disruptions to the global food supply chain are contributing to the price increases.

You may be wondering if you have enough money to retire in this situation. Here’s a breakdown of the increased spending on food, transportation, entertainment, and personal care:

Changes in average annual spending among consumers 65 and older

Food:

• 2022: $7,306
• 2012: $5,059
• 10-year change: +44.4%

Transportation:

• 2022: $8,172
• 2012: $6,538
• 10-year change: +25.0%

Entertainment:

• 2022: $2,672
• 2012: $2,020
• 10-year change: +32.3%

Personal care:

• 2022: $706
• 2012: $569
• 10-year change: +24.1%

Total spending: (includes housing and healthcare)

• 2022: $57,818
• 2012: $40,410
• 10-year change: +43.1%

Topics #entertainment #food #Retirement Costs #Savings Account Survey #transportation