How Much the Average Middle-Class Retiree Spends Monthly at Age 70

Turning 70 can feel like hitting a comfortable groove, but that doesn’t mean the bills stop coming. While some retirees may have paid off their mortgage or downsized, expenses like healthcare, home maintenance and everyday costs still add up.

Knowing what the average retiree spends each month can make it easier to budget wisely and enjoy this next chapter with a little more peace of mind.

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According to the Consumer Expenditure Surveys (CE) program from the U.S. Bureau of Labor Statistics, the average retired household spends roughly $5,400 per month or about $65,000 annually. This encompasses essential and discretionary categories like housing, healthcare, food, transportation and more.

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Here’s how average monthly expenses typically break down, according to the data collected in the Consumer Expenditure Surveys (CE) program.

Housing – $1,851 per month: Roughly a third of expenses go toward housing, covering mortgage or rent, property taxes, maintenance, home insurance, and utilities.

Transportation – $908 per month: Includes car payments, insurance, fuel, and maintenance, which may be higher than many expect post-retirement.

Healthcare – $662 per month: Combines Medicare premiums, co-pays, prescriptions, and out-of-pocket costs.

Food – $713 per month: Covers groceries and dining out.

Utilities and Services – $374 per month: Gas, electricity, water, internet and phone services.

Together, these five categories typically account for about 75% to 85% of a retiree’s monthly spending.

Beyond the essentials, many retirees also budget for activities and purchases that add enjoyment and comfort to daily life. Here’s a look at some common lifestyle expenses.

Entertainment – $287 per month: Including hobbies, travel, dining out, and subscriptions, around 5% of the monthly budget.

Other (clothing, furnishings, household services) – $93 per month: Typically modest, around 2% to 3% each.

Spending usually declines with age. According to BLS data, total yearly expenditures fell from $83,379 for ages 55 to 64 to $65,149 for those aged 65 to 74. When living costs drop, such as paying off a mortgage or downsizing, retirees may see significant monthly savings.

Below is what a typical monthly budget might look like.