BLS Average Retiree Spending Data

[AudiDudi]

I won't be buying a new TV either, so long as my current one still works. I'm willing to spend, but not just for the sake of spending.

He whined for 2 yrs about picture quality and the sound was going out. I believe his wife finally gave the ultimatum

 

[Time2]

He seems unable to flip the switch from saving to spending though. It took him 2 years to talk himself into buying a new $800 TV.

I understand and resemble that remark! My kids will benefit, or have already.

 

[skyking1]

I won't be buying a new TV either, so long as my current one still works. I'm willing to spend, but not just for the sake of spending.

We are still rocking the 2011 Panasonic Plasma when plasma was the thing.

 

[ktdtx]

Thanks...Lot of detail.


Over 75 Mean Income $43,538 and Mean Expenditures $45,820....Interesting

 

[MarieIG]

Thanks...Lot of detail.


Over 75 Mean Income $43,538 and Mean Expenditures $45,820....Interesting

Medical expenses / needs for caregivers tend to go up in latter years.

Interesting. Thanks for posting. I saved and invested my whole life so that I could afford to be well above the mean in retirement spending.

I saved due to a desire for security in retirement. Unfortunately, I did not think much about investing in my youth.

I'm surprised to see only 47% of 65 to 74 yr olds own their home free and clear. But, I do see it jumps to 62% for those over 75 yrs old.
We must be living well, our spending is above the mean, but not by much. We just never broke our frugal ways.

On the other hand, in 11 months and we will start SS, at a combined $58k+. We will be doing what someone coined warm hand gifting.

We do "modest" gifting now, but I anticipate we will turn it up after we take SS.

Interesting table with lots of data but I quit comparing when I looked up the definition of "consumer unit". I am a single person household. When my husband died my income went down and my federal tax went up but most of my fixed expenses remained the same. Even a comparison of my current consumer unit to my consumer unit before my husband died would not make much sense.

I actually think this is a very important point, overlooked by many, i.e. that total expenses may not go down for some after the loss of a spouse (i.e. maintaining the same home, hiring someone to do work around the home previously handled by the lost spouse, higher taxes, etc.)

Frank is a widower, and I'm a divorcee. Both of us are elderly, and both of us (individually) decided before we ever met to never to re-marry or live with anybody. For us, it's not as tough as it sounds, though. We are devoted to one another and enjoying a happy and loving life together, living next door to each other and spending time together every day.

Just wanted to tell you that while it can be VERY tough for some elderly, others are doing OK after death of spouse or divorce.

You are living in your dream house next door to the love of your life, whom you see daily - that is beyond doing ok.

My two grandmothers outlived their husbands by 28 and 34 years. Neither was interested in remarrying - but both of them had a lot of friends and very supportive family.

I won't be buying a new TV either, so long as my current one still works. I'm willing to spend, but not just for the sake of spending.

I was never a fan of spending for the sake of spending and I have no intention of cultivating that behavior. I prefer that my spending be more purposeful.

 

[karen1972]

Interesting how much spending tapers off at 55.. we shall see. We are in the 45-54 category and our spending is basically just at the mean though spent in very different categories.

I don't see us having a lot of big expenses dropping off in the next 10 years, the next big reduction will likely be 65 when we get on Medicare

 

[MichaelB]

Income declines sharply with the age group 55-64 (17%) and much more steeply with the age group 65-74 (44%). In those age groups spending also falls, but not as much. That shows people spending down their savings.

What is not clear in the data is if the decline in spending is driven by by the decline in income, or people naturally spending less as they age. The latter has often been suggested and is one rational for increase spending at an earlier age.

I suspect the decline is forced upon us by the fall in income.

IIRC the Census Bureau also has data on income and expenditures by age group.

 

[Masquernom]

A financial planner, in Minnesota I believe, published results of his clients spending. His clients spending dropped with age. Even though their net worth continued to increase. He had data going back for years as he was working in his father's planning business.

 

[skyking1]

^ that is how it was with my family.

 

[GravitySucks]

Interesting.

My budget for 2024 shows I'm 22% above the mean for booze. I better cut back.

NoNoNo!
You’ll ruin the curve for the rest of us!

 

[skyking1]

somebody has to offset us teetotalers