How Much Money The Average Retiree In Their 60s Spends Each Month

As you approach your 60s — a common age for retirement — it's wise to know how much you can expect to spend once you're in this age group. This knowledge will not only enable you to calculate how much you need to save for retirement each year, but it will also help you decide when it's best to stop working. The Bureau of Labor Statistics (BLS) publishes Consumer Expenditure Surveys for the 55 to 64 and 65 to 74 age groups, which makes it easy to get a rough estimate on how much a retiree in their 60s is likely to spend. In 2023, households led by a person in their early 60s spent approximately $6,950 per month (via FRED). Meanwhile, those in their late 60s spent about $5,400 per month (via FRED). 

The spending gap between people in their early and late 60s is significant, since it correlates directly with retirement age statistics. In recent years, just over 30% of Americans aged 60 to 64 were retired. In contrast, 70% of those aged 65 to 69 had stopped working. This means that more people in their early 60s are working, and the cohort spends somewhat more than those who are approaching 70 and are more likely to be retired. Despite the gap, the top expense — housing — is the same for everyone in their 60s, with transportation, food, and healthcare not too far behind. Although spending roughly $5,400 monthly may seem like a lot for someone who has stopped working or is about to retire, there are some money-saving strategies that can make the Social Security payments and retirement savings go a longer way. 

In 2023, housing was the top expense for retirees in their 60s. According to the Bureau of Labor Statistics, via FRED, persons in their early 60s spent just over $2,100 per month on housing, while those in the later 60s roughly $1,850 per month. This amount covers the mortgage interest or rent, property taxes, home maintenance, utility bills, and other housing expenses. The geographic location makes a significant difference in housing spending amounts, which are naturally higher for retirees in the nation's most expensive states.

Health care, transportation, and food take up a big part of the budget for both age groups. In 2023, people in their early 60s spent about $600 on health care, $1,200 on transportation, and $850 on food each month (via FRED). For their older counterparts, health care averaged slightly more, at $660 per month, while transportation cost $900 per month, and the monthly food expenditures came in at just over $700, according to the Bureau of Labor Statistics (via FRED). Again, we can see the older cohort, which includes most retirees in their 60s, spending somewhat less in all categories — except for healthcare. 

Housing takes up the most money, so consider retiring in states that offer tax breaks for older homeowners. For example, Fairfax County in Virginia gives people 65 and older, with net assets under $400,000, a property tax reduction that can cover up to 100% of the bill. The tax reduction percentage depends on the combined household income. Philadelphia, Pennsylvania also keeps seniors' property values from rising for tax purposes. To qualify, the applicants must be over 65 years of age or over 50 and married to someone who passed away after 65. The income threshold is $33,500 or less for a single applicant or $41,500 or less for a couple. You can also settle in these U.S. cities where retirees can live on Social Security alone.

Utility bills make up a good chunk of expenditures, but the Weatherization Assistance Program can make your home use less energy by adding insulation, sealing leaks, and upgrading heating systems. The U.S Department of Energy claims that these measures save seniors about $372 per year. You can also apply for the Low Income Home Energy Assistance Program (LIHEAP), which gives bill credits or emergency help when you need it. In Massachusetts, as of May 2025, LIHEAP pays $1,144 for natural gas and $1,927 for electricity each year if you use standard amounts. For food, sign up for the Supplemental Nutrition Assistance Program (SNAP). The average SNAP benefit for a single senior was $162 per month as of April 2025. This frees up money for bills, medicine, or leisure activities. To get started, go to your state's SNAP website.