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Here’s What the Average 70-Year-Old Retiree Spends Each Month on 5 Main Expenses

How does your monthly budget compare? And how can you save more?

By Josh Koebert , Edited by Laura Hohenstein

Updated May 6, 2026

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It used to be that Americans hoped to retire at age 62, or maybe 65. But with costs rising, now, 70 is becoming a popular target.

So, what kind of expenses should you include in your retirement plan if you retire at age 70? Thanks to the Consumer Expenditure Surveys from the Federal Reserve Economic Data (FRED), you can get a pretty good idea. The most recent survey of households headed by someone aged 65 to 74 shows annual expenditures of $65,149, or about $5,429 per month.

The FRED survey breaks down the expenses for the average 70-year-old into several subcategories. Here's what you need to know about how much the average middle-class retiree can expect to spend a month at age 70.

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1. Housing

As with most age groups, housing remains the single largest expense at age 70, clocking in at an average of $1,851 per month. This category covers everything from mortgage payments or rent to property taxes, insurance, utilities, and home repairs.

For many around age 70, their children have long moved out, making their home larger than they need. This creates an opportunity for significant savings in the housing category by moving into a smaller home.

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2. Transportation

The second-largest expense for 70-year-old retirees is transportation, averaging $908 per month. For most people in this age range, this category includes car payments, gas, insurance, and general upkeep costs.

However, the rising cost of fuel and repairs makes transportation a volatile part of the monthly budget. Beyond building an emergency fund, you could save money by choosing a reliable car and avoiding buying a new one every few years.

3. Food

Given high grocery costs and what it costs to dine out, it's no surprise that food is also one of the top expenses in the average 70-year-old's household, at $714 per month.

How this money is split between groceries and dining out often reflects a retiree's lifestyle and social habits. However, it is a flexible category that offers the opportunity to either save or splurge.

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4. Health care

It's not uncommon for people to spend more on health care as they get older, so it's not surprising that this category also ranks high on the list, with an average expense of $662 per month.

This figure includes monthly health insurance premiums as well as all out-of-pocket costs for doctor visits, prescription drugs, dental care, and medical supplies.

5. Cash contributions

One interesting category in the FRED data is "cash contributions." This is what the average 70-year-old gives away, and at an average of $230 per month, it's a surprisingly generous amount.

Included in the category are charitable donations to religious, educational, or other organizations, as well as financial gifts given to family and friends. It's proof that, regardless of their age, people have a desire to support their communities and loved ones.

Now that you have an idea of some of the top monthly expenses you can expect at age 70, here are a few tips to maximize your retirement savings.

Create a retirement budget

One of the great things about FRED and the Consumer Expenditure Surveys is how you can see where the average American household's money goes. It's an excellent starting point for creating a retirement budget.

Many finance experts advise withdrawing 4% to 5% of your savings in the first year of retirement, then adjusting that amount for inflation each subsequent year. Use this rule of thumb and the survey data to start budgeting so that you spend your money wisely.

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Downsize your home

If your housing costs are eating up too much of your budget, it might be time to consider downsizing.

Moving to a smaller, more manageable home can noticeably reduce your monthly expenses by lowering your utility bills, property taxes, and so on. The proceeds from selling your current home can also significantly boost your retirement savings.

Plan for health care volatility

Since health care costs tend to rise throughout retirement, it's best to proactively plan for yearly increases.

Each year during Medicare's Open Enrollment period, review your Part D (prescription drug) and Medicare Advantage plans. A plan that was a good fit at 65 might not be the most cost-effective option at age 70. Plus, switching could save you hundreds of dollars a year.

Evaluate your transportation needs

You may live in a two-car household at age 70, but could you comfortably manage with just one? Many retirees eventually decide to give up their cars, both for their safety and because it's an opportunity to save on what is typically their second-largest expense.

If you live in an urban area, going car-free is easier than elsewhere, as you can rely on public transit or ridesharing. Even after paying for those services, you can likely save quite a bit on monthly transportation costs.

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Bottom line

When you first hear that the average middle-class retiree spends more than $5,400 every month, it can trigger a bit of anxiety. It may sound like a lot, and you start to wonder if your savings will last. But the thing to keep in mind is the bulk of those expenses go toward housing and transportation: two categories you have some control over.

Financial advisors have noted that spending patterns are not static at any age. In fact, those who have studied the issue have found that retiree spending tends to decrease over time. That's likely because they downsized their home, sold a car, and made other cost-effective adjustments to their budget.

By staying informed and creating a plan, you can avoid money mistakes that eat away at your retirement savings.

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