Here's How Much the Average 60-Year-Old Spends Annually (How Do You Compare?)

Now that you're 60 and retirement is drawing closer, you might be wondering if you're on the right track to build wealth. While saving is crucial, evaluating your current spending habits and making changes now, not waiting until you retire, will go a long way toward making you feel secure in your financial standing.

One way to start is by looking at what others your age spend. Learn how much the average 60-year-old spends each year, see how your finances stack up, and get tips to cut costs while growing your net worth.

According to data from the Consumer Expenditure Surveys administered by the Bureau of Labor Statistics, Americans between the ages of 55 and 64 spend an average of $83,379 per year.

That number is up from 2022, when the same age group spent an average of $78,079.

Far and away, the average 60-year-old's biggest expenditure is housing, which costs them $25,595 per year. Transportation comes in second at $14,443 per year, a number that includes vehicle purchases along with the cost of gas, public transit, and car maintenance.

Other key expenses include food ($10,069), pensions and Social Security ($10,389), and health care ($7,164).

Averages can be misleading, since extreme highs or lows skew them more than medians. Not everyone your age spends $85,000 a year. Many spend far more or far less.

What matters most isn't how others spend but how you manage your own budget. Comparing your saving and spending habits and making adjustments now can set you up for a stronger retirement. The tips below can help you get started.

Many working adults assume they'll downsize in retirement, which is when they'll have more time to pack, move, and sort items to keep and sell. But downsizing now can pay huge dividends later on.

The younger you are, the easier it is to handle the physical demands of moving. Plus, you'll immediately save on housing and utilities, and investing those savings now means even more down the road.

At age 50, you're allowed to start contributing more money to your 401(k) than younger workers. For the 2025 tax year, you can add an additional $7,500, which brings the total amount you can contribute per year to $31,000.

The catch-up contribution amount increases to $11,250 when you're 60, 61, and 62.

If you're planning to spend money on a vehicle this year, think carefully about the pros and cons of buying new versus used. Unlike property, which tends to increase in value over time, new cars start to lose value almost as soon as you get behind the wheel.

Investing in a sturdy, used car that doesn't require much maintenance could be a better choice for your budget.

Americans now spend more than half their household food budget on dining out. Cut costs by limiting restaurant meals to once a week or even once a month.

If you find yourself constantly tossing out rotten fruit, moldy bread, or leftovers, it's time to rethink your grocery trips.

The less food you waste, the more money you'll save. Since the U.S. wastes around 40% of its entire food supply, not buying what you're not sure you can eat in a timely fashion could get you back several thousand dollars per year.

The average American spends nearly $4,000 a year on entertainment. Instead of going out to the movies, check your local library's catalogue. Many libraries also offer free streaming services like Kanopy, which could help replace your monthly streaming service fees.

Spend more time outdoors, taking advantage of free local events at parks and community centers.

If you're spending upwards of $1,413 per year on your cell phone plan, it's time to search for a cheaper provider, preferably one that brings your total bill below the national average.

Your 60s are essential to cementing your financial future. The more you can avoid wasting money now, the more money you can tuck away for your retired self to enjoy.

Creating healthy spending habits now means you'll have an easier time transitioning to life on a fixed income in retirement.