Retirement Living Expenses Calculator: Estimate Your Retirement Costs
U.S. households headed by someone age 65 or older spent an average of $60,087, according to the Bureau of Labor Statistics.
Retirement spending can differ substantially from household to household as income, housing costs, and other expenses change over time.
Retirement Living Expenses Calculator
Estimate your monthly living expenses in retirement, see how they stack up against Social Security and other income, and find out how big a nest egg you’ll need — based on the latest BLS, Social Security, and Medicare figures.
Average Retirement Living Expenses
| Expense Category | Average Annual Spending (65+) | Approx. Share of Budget |
|---|---|---|
| Housing | $22,624 | 43.4% |
| Food | $6,490 | 12.4% |
| Transportation | $7,160 | 13.7% |
| Health care | $5,452 | 10.5% |
| Entertainment | $2,889 | 5.5% |
| Cash contributions | $3,341 | 6.4% |
| Apparel & services | $1,586 | 3.0% |
| Other expenses | $2,999 | 5.8% |
| Total average spending | $52,141 | 100% |
Your actual retirement living expenses can vary significantly based on
- Housing costs
- Location
- Health care needs
- Household size, and
- Whether a retiree owns or rents a home.
Essential vs. Discretionary Spending
Essential items (necessities)
These include
- Housing: rent/mortgage, property tax, home repairs, utilities
- Healthcare: Medicare premiums, co-pays, prescriptions
- Basic insurance: Medicare Part B/D premiums, supplemental policies, auto/home insurance;
- Transportation essentials: Car payments, maintenance, gas, public transit; and
- Taxes: Property taxes, some income tax on Social Security if applicable.
Discretionary items
These are nice-to-have expenses that retirees can often trim.
Examples include travel and leisure such as vacations, museum passes, dining out, hobbies.
Other discretionary costs:
- Gifts/charity beyond routine
- Extra vehicles
- Luxury health supplements
- Premium TV/Internet packages, etc.
- Long-term care such as nursing home, in-home aide can be essential for those who need it, but is not mandatory for all retirees.
Trends: Which Expenses Rise or Fall
Overall, retirees tend to see their total spending drop modestly with age, but the composition shifts toward essentials(especially housing and health.
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