Intelligent Retirement Planning and Investing Strategies for Discerning Women and Couples Nationwide Age 50+

How Retirement Spending Changes With Time

New retirees sometimes worry that they are spending too much, too soon. Should they scale back? Are they at risk of outliving their money? This concern may be legitimate. Some households “live it up” and spend more than they anticipate as retirement starts to unfold. In 10 or 20 years, though, they may not spend nearly as much.

By The Numbers

The initial stage of retirement can be expensive. The Bureau of Labor Statistics figures show average spending of $70,570 per year for households headed by pre-retirees, Americans age 55-64. That figure drops to $52,141 for households headed by people age 65 and older. For people age 75 and older, that number drops even further to $45,820.1

Spending Pattern

Some suggest that retirement spending is best depicted by a U-shaped graph — It rises, then falls, then increases quickly due to medical expenses.

But a study by the investment firm BlackRock found that retiree spending declined very slightly over time. Also, medical expenses only spiked for a small percentage of retirees in the last two years of their lives.2

What’s the best course for you? Your spending pattern will depend on your personal choices as you enter retirement. A carefully designed retirement income strategy can help you be prepared and enjoy your retirement years.

1. Bureau of Labor Statistics, 2023
2. BlackRock.com, 2023. (Based on a 2017 landmark study that looked at retirement spending.)

PREVIOUS POST

3 Helpful Retirement Strategies for Women

Read more

Get your free
Retirement Readiness Kit.

Request
Top

Search Site

Free Retirement Readiness Kit

Complete the fields below and your free Retirement Readiness Kit will be on its way to you within one business day.

Retirement Readiness Kit

The 10 Biggest Retirement Mistakes People Make and How to Avoid Them

Simply input your email address and the file will download directly to your computer. Check your Downloads folder or the bottom of your browser window to view.

 
The 10 Biggest Retirement Mistakes People Make and How to Avoid Them