Retirement Retirement Planning

Here's What a 'Comfortable' Retirement Really Costs in 2026

Here's how much Americans ages 65 and older spend on housing, health care, and more.

By Michelle Smith

Edited by Lisa Dammeyer

Updated Jan. 7, 2026

One of the trickiest parts of making your retirement plan is understanding how much money you actually need to retire. Factors like your age at retirement, your Social Security benefits, and the cost of living in your area can all impact how much money you will need to retire comfortably. But if that subjectivity is interfering with your ability to plan, it could help to have a ballpark estimate to aim for as you start to calculate retirement expenses.

Below, we've calculated a rough but realistic figure for how much it costs the average American to retire. Keep reading to learn how we came to our conclusions, which factors we considered, and what you can do if you're behind on saving.

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How much retirees spend in total per year

Every year, the Bureau of Labor Statistics (BLS) publishes its Consumer Expenditure Survey, which breaks down American spending by category, age, and other factors.

According to the most recent available data from 2024, the average American aged 65 and older spends $61,432 per year. Assuming you retire at age 67 and live until age 78 (the average American lifespan), you'd need around $675,752 to live on for the rest of your life, not accounting for inflation.

But just how much do retirees spend on specific expenses like food and housing? Here are the numbers.

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1. Housing

The BLS reports that Americans 65 and older spent $22,193 on housing costs in 2024. This amount includes monthly mortgage or rent payments, property taxes, and home maintenance and repairs.

It's worth noting that you might spend more than average on housing if you plan to live in a retirement community, where monthly costs typically range from $1,500 to $4,000 but can also be much higher. If you live in an assisted living center, expect to pay even more. Monthly costs can start at $3,500 but may be as high as $10,500 or more.

2. Health care

In 2024, those aged 65 and older spent $7,799 on health care. That comes to $85,789 over 11 years, but your actual costs may be much higher depending on your age, health, and insurance plan.

Per the Retiree Health Cost Index, which is administered by health care data company Milliman, retired men on Original Medicare should plan to save $185,000 for health care alone. Retired women on Original Medicare should save $203,000.

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3. Food expenses

Without including alcoholic beverages, Americans ages 65 and older spent an average of $7,940 per year on food. The majority of that cash — $5,251 — was spent on food at home. Of course, this can vary greatly depending on how often you eat out, your overall diet, and where you shop for groceries.

4. Transportation

Seniors spent $9,538 on transportation in 2024, putting transportation costs ahead of both food and health care. The total cost includes $3,510 spent on vehicle purchases and $3,198 spent on other vehicle expenses, such as insurance, maintenance, and repairs. Public transportation costs accounted for $1,024 of spending.

5. Entertainment

For many, part of the joy of retirement is leaning into old hobbies and having new experiences. In 2024, seniors spent $3,025 on entertainment. Between tickets and admission to events and in-home entertainment like TVs and speakers, they spent $1,650. The remaining amount spent was related to hobbies — like pickleball equipment or crafting supplies — and pets.

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What if you don't have enough savings to retire?

If you've saved less than the $675,752 you'll likely need to retire, you're far from alone. Americans between ages 55 and 64 have a median retirement savings of $185,000. Fortunately, it's never too late to start catching up on your savings using the tips we list below.

Take advantage of the IRS's catch-up contributions

Once you've turned 50, you're allowed to start making bigger "catch-up" contributions to your 401(k). While younger Americans can contribute $24,500, older adults can contribute as much as $32,500 for the 2026 tax year. If you're behind on your retirement savings, this tax rule is made for you, so take advantage.

Make sure your investment portfolio is up to date

Your investment portfolio should reflect your current age. For instance, when you're younger, you may be able to invest in riskier stocks since you'll have time to regain any losses. Once you're closer to retirement, your investments might be more stable.

Make a point of checking your 401(k) portfolio at least once a year. Consider consulting a financial planner to make sure your investment portfolio reflects your age and savings goals.

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Pick up a side gig solely for the savings

If you need to rapidly grow your retirement savings, consider picking up a part-time job or a small side gig. This could be anything from working at your local grocery store to driving for a ride-share company every once in a while. Put all proceeds from that job directly into a high-yield savings account (HYSA) or consider investing them in your 401(k) if you haven't met your contribution limit yet.

Bottom line

The actual amount of money needed to retire differs greatly from person to person. If you don't have as much money saved as our average amount, don't panic — but do sit down with a retirement planner to see how your retirement savings stack up. A trusted financial planner can help you start making a plan for your own version of a comfortable retirement.

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