#Average monthly expenses in retirement free

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#Average monthly expenses in retirement free

For the typical 65-year-old woman, that total climbs to $214,565.Īnd since retiring means having more free time on your hands, it stands to reason that you might increase your leisure spending to keep yourself occupied. It's estimated that the average 65-year-old man today will spend $189,687 on healthcare in retirement. On the other hand, you also have the option to downsize, which would allow you to cut your housing expenses and give you a bit more breathing room.īut while many of your living expenses might dip slightly or stay the same in retirement, two that are likely to rise are none other than healthcare and leisure. Therefore, while you might unload your mortgage payment itself, the amount you spend to keep that home standing could wipe out any associated savings. Your housing costs might go down in retirement if you pay off your mortgage while you're still working, but property taxes have a tendency to climb over time, and as your home ages, it's bound to require more maintenance and repairs. Now let's talk about housing, because that one is iffy. Unfortunately, transportation might be your only expense that goes down substantially. Between your car payment, insurance, maintenance, and fuel costs, that's some nice savings right there. Imagine you no longer need a second vehicle to commute to work and can therefore unload that expense. You may even come to find that some of your costs go down in retirement, such as transportation. But inflation aside, you can probably use the amount you're spending pre-retirement as a benchmark for what you'll spend during your golden years. Now keep in mind that the cost of these items is likely to rise over time because that's just how inflation works.