How much do retired people spend per year

[D2Cat]

I'm just curious. This article says, "At age 65, Americans are expected to live an average of another 19.4 years, and the typical retirement-age American spends $50,220 a year."

So I guess this means for a couple (I was going to say "married" but that isn't appropriate these days) $100,000 per year is required. Seems like a pretty comfortable life style to me.

https://www.thecentersquare.com/ind...nfinity-scroll-summary-sticky-siderail-latest

 

[bhci]

I don't know, but I hope to find out some day soon.

 

[simme]

That question is sort of like "What does a cow cost?". There is a lot of variation depending on lifestyle. There has been a popular notion that you should expect to spend a certain percentage of what you made prior to retirement. Maybe 50 to 80%. If you were saving and investing a good percentage of your pre-retirement income, then you are already accustomed to living on less money than you could have spent. If you were making $200,000 per year prior to retirement, do you really need $100,000 to $160,000 in retirement? You can live on a pretty small amount if you want to or have to. If you plan to live the lifestyle of the rich and famous, you will need more money.
Best guess is to decide what you intend to do and prepare a budget estimate. Property taxes, housing, insurance, transportation, and food (the essentials) are pretty easy to estimate if you spend a little time on it. Other stuff - the sky is the limit.
I retired 2 years ago. Financial advisor said we should plan to spend $7,000 to $8,000 per month. My expenses are nowhere close to that.

 

[M.Magis]

Since when is the life expectancy in America 85?

 

[shaz]

Wife and I are trying to get all the traveling we want to do done before retirement while we can still walk.

 

[simme]

Since when is the life expectancy in America 85?

Life expectancy from birth is different than from age 65. My financial guy explained that to me. If you have already reached retirement age without major health issues, your life expectancy is going to be considered to be longer than the average age of death for everyone.

 

[M.Magis]

Life expectancy from birth is different than from age 65. My financial guy explained that to me. If you have already reached retirement age without major health issues, your life expectancy is going to be considered to be longer than the average age of death for everyone.

That makes sense and all, but I find it hard to believe that once you make it to 65 your life expectancy jumps up to 85. Of course I don't know the average age that retired people die, but I don't think its 85.

 

[simme]

That makes sense and all, but I find it hard to believe that once you make it to 65 your life expectancy jumps up to 85. Of course I don't know the average age that retired people die, but I don't think its 85.

Here is a chart (actuarial table) from SSA. The "life expectancy" column is years remaining after that age. For instance, at birth the average years remaining for a newborn male is 76.23 years. But the average remaining years for a 65 year old male is 18.09 years.

Actuarial Life Table

Actuarial Life Table

www.ssa.gov

 

[Son of Butch]

So I guess this means for a couple... $100,000 per year is required. Seems like a pretty comfortable life style to me.

Federal government says for 2022 a 2 person household $1,452 month aka
$17,424 yr is above the national poverty line and $12,640 for a single person household. How much more is needed to live comfortably will vary upward depending on individual lifestyle and expectations.

 

[D2Cat]

SOB, what you are describing is the threshold the govt. says keeps one out of poverty. Below those numbers, or maybe even those numbers, get handouts for rent, groceries, utilities. The $1,450 a month is $9 an hour. Those people don't retire, they exist.

The link posted gives numbers for people who work, have goals, and plan to work enough to enjoy life with less stress at some point. The numbers are significantly different.

 

[Son of Butch]

SOB, what you are describing is the threshold the govt. says keeps one out of poverty. Below those numbers, or maybe even those numbers, get handouts for rent, groceries, utilities. The $1,450 a month is $9 an hour. Those people don't retire, they exist.

The link posted gives numbers for people who work, have goals, and plan to work enough to enjoy life with less stress at some point. The numbers are significantly different.

100s of millions worldwide live on less.
I was giving you the numbers for a 2 person household for a subsistence living in 2022 in America today. Your statement that $100,000 yr is required for a 2 person household to live comfortably is elitist.

 

[D2Cat]

The ins. report indicated $50K per individual per year was required. That's where the $100K came from.

That income is elitist? Minnesota is #15, so you require more funds for the same life style.

By your definition there have to be elitist to support those who won't/can't work!

And there are elitist in every state in large numbers. This is just part of the story.

"State level calculations in this story are based on the average annual expenditure of $50,220 for Americans 65 years and older in 2019, as reported in the BLS Consumer Expenditure Survey. This figure is adjusted by state to account for both cost of living and life expectancy at age 65, and then multiplied by 115% in order to reflect greater financial stability and comfort in retirement. All data in this story is from the Bureau of Labor Statistics, Bureau of Economic Analysis, and the Institute for Health Metrics and Evaluation."

 

[kenny thomas]

I'm just curious. This article says, "At age 65, Americans are expected to live an average of another 19.4 years, and the typical retirement-age American spends $50,220 a year."

So I guess this means for a couple (I was going to say "married" but that isn't appropriate these days) $100,000 per year is required. Seems like a pretty comfortable life style to me.

https://www.thecentersquare.com/ind...nfinity-scroll-summary-sticky-siderail-latest

I just retired Friday and I have never spent that amount of money while I was working so I seriously doubt I will now.

 

[J+ Cattle]

You can always move to a lower cost state or lower cost country for retirement

 

[greybeard]

I just retired Friday and I have never spent that amount of money while I was working so I seriously doubt I will now.

I've been retired since 2017 and I never spent that kind of $$ either for expenses. I live, travel all i want to and eat well for far less than $50K/year.

 

[Silver]

I have plenty of money to retire and live out my life fairly well. If I get shot tomorrow.

 

[Son of Butch]

The ins. report indicated $50K per individual per year was required.

2019 real median income per person averaged $35,977 yr.
2021 average weekly earnings; fulltime worker: $990 week (pre tax)
source: Federal Reserve Economic Data aka FRED

2 can live as cheaply as 1 (not true) the 2nd person requires additional 60%
36,000 + 21,600 (60%) = 57,600
57,600 + 3,400 inflation adjusted = 61,000 per 2 person household for 2022

2022 a retired couple can live very comfortably on $5,000 month (not extravagantly)
in any state in America.

But unless you're trying to keep up with the Jones's; what does it matter?
What you spent last year is more relevant to what you'll need next year, than what other people are spending.

 

[sstterry]

I just retired Friday and I have never spent that amount of money while I was working so I seriously doubt I will now.

All those Bear hunting trips are going to get mighty expensive, not to mention your growing metal rooster collection.

 

[Stocker Steve]

All those Bear hunting trips are going to get mighty expensive, not to mention your growing metal rooter collection.

and all the cruises...

 

[Stocker Steve]

Without a lot of personal planning details - - a financial planner assumes you keep the big house and the lake place and the two new vehicles and the welfare cows and make even more extended international vacations. So you need his help to increase your retirement income.