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Retirement Income Needs: What the Average Retiree Requires Annually
These numbers won't be representative for every individual, but they can still play a useful role in your retirement planning.
The U.S. Bureau of Labor Statistics reports the average U.S. household shelled out $6,440 per month on living expenses in 2023, or $77,280 per year. That's most of the average household income of $80,610.
But how might this spending change once you're retired? You typically don't need to spend as much, for a couple of different reasons. You're no longer commuting to work, for example, or paying for childcare.
With that in mind, here's a rundown of what the average retiree household is spending on major living expenses. Your budget may not look exactly the same, but these figures can serve as a useful benchmark in your own planning.
