Here’s What the Average 80-Year-Old Retiree Spends Each Month on 5 Main Expenses

Many Americans plan their retirement around their 60s or early 70s, budgeting in for travel, entertainment, and downsizing into a newer home. But fewer people stop to think about what life looks like a decade further out. By the time you reach your 80s, priorities often change. As routines look different, so do monthly expenses.

Using Consumer Expenditure Survey data published through the Federal Reserve Economic Data (FRED) system, we can estimate what the average retiree household headed by someone age 75 or older spends each month. While no two retirements look the same, the numbers offer a useful snapshot into how costs alter, so you can avoid money mistakes.

Here's a closer look at how the average middle-class retiree's monthly budget often breaks down in their 80s.

Housing

Housing remains the largest expense for retirees in their 80s, averaging about $1,833 per month. This category includes mortgage payments or rent, property taxes, homeowner insurance, utilities, and routine maintenance.

Many people in this age group have paid off their mortgages, which helps keep housing costs lower than earlier in retirement. However, expenses can still add up, especially for those who remain in single-family homes, struggle with upkeep, or face rising property taxes and insurance premiums.

Transportation

Transportation costs decline noticeably in the 80s, averaging roughly $571 per month. Fewer retirees in this age group drive regularly, and many households transition to one vehicle or none at all.

That reduction helps offset costs like car payments, fuel, and maintenance. At the same time, spending may shift toward ridesharing services, public transit, or help from family members, which can still add up but is often cheaper than owning multiple vehicles.

Food

Food spending remains a meaningful part of the monthly budget, averaging about $749 per month. This includes groceries, food delivery orders, and dining out.

Compared with younger retirees, people in their 80s tend to eat out less frequently and rely more on groceries or prepared meals. Still, rising food prices mean this category remains one of the more consistent expenses throughout retirement.

Health care

Health care spending becomes more prominent later in retirement, averaging about $1,320 per month for households headed by someone 75 or older. This category includes health insurance premiums, out-of-pocket medical expenses, prescription drugs, dental care, medical services, and medical supplies.

While Medicare covers many core services, medical expenses increase with age. Retirees 75 or older pay the highest costs for drugs and medications, medical services, and overall medical care.

Even small changes in medication needs or care routines can have a noticeable impact on a fixed monthly budget.

Cash contributions and miscellaneous expenses

One often-overlooked category in federal spending data is cash contributions, which average about $291 per month for retirees in their later years. These include charitable donations and financial gifts to family or friends.

Miscellaneous expenses also play a role, covering personal care items, household services, and small discretionary purchases. While individually modest, these costs add up, costing those 75 and older roughly $132 a month.

Why spending often declines in your 80s

Total monthly spending in the 80s is generally lower than in earlier retirement years. That's largely because discretionary expenses for categories like travel, entertainment, and transportation shrink naturally over time.

Many retirees downsize, stop driving, and simplify their lifestyles. While medical bills take up a larger share of the budget, overall expenses often stabilize or decline rather than increase dramatically.

Planning implications for late retirement

These patterns highlight why it's important to look past age 65 or 70 when planning for retirement. Factoring in longevity means anticipating a shift in where money goes, not just how much is spent.

Understanding which expenses are likely to rise and which may fall can help retirees stress-test their savings and make informed decisions earlier, when more options are available.

Bottom line

In your 80s, retirement spending looks different from what it did a decade earlier. Housing remains the biggest expense, transportation costs often drop, and medical care takes on a larger role in the monthly budget.

Federal spending data suggests that many seniors naturally adjust their lifestyles in ways that help keep overall costs manageable. Planning ahead for retirement trends can help your savings last — not just through retirement as one life episode, but for every stage of it.

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