How Much Money Does The Average Retired Person Live On?

For many people, retirement is a long awaited chance to kick back and relax after a long life of working. But not working also means a big drop in your income, which means you partly have to live off your retirement plan. But how much does the average american retired person spend? That is the question we will be answering in this post.

How much money does the average retired person live on? The average American 60-69 year old has about 198.000 dollars in Their 401K. Even though that’s not a lot, the same average American spends about 3.800 dollars a month, which is about 45.756 dollars a year, where housing is by far the largest expense for the average retiree.

So how does the average budget of an american retired person look like? First of all, there is housing, which comes to 1,332 dollars a month. Then comes transportation for 567 dollars a month. Next is health care, which comes to 499 dollars a month.

You also have to eat, therefore the average retired person also spends around 483 dollars a month on food. Lastly, we got personal insurance and pensions for 237 dollars a month.