How much do retirees spend per month in the United States?
It’s best to prepare for retirement as early as possible, since you’ll have to pay bills without a regular paycheck. How much do retirees spend monthly?
Retirement is a phase of life when you stop earning a regular income from work. By preparing for it, you can build a financial cushion that will provide you with a secure and comfortable lifestyle during your retirement years.
A retirement fund allows you to cover living expenses, medical costs, travel, and other activities without worrying about hardships involving money. However, not many people are prepared financially for this period in their life.
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US retirees haven’t saved enough
According to a study by Clever, a website that helps people make financial and real estate decisions, the average retiree does not have enough money saved for retirement. Many of those surveyed said they were surprised by how much money it takes to retire- the recommended minimum amount to have on hand when you stop working is around $555,000.
About 37% of those surveyed said they have no retirement savings, and only some 12% have the recommended minimum amount. On average, retirees only have approximately $170,000 squirreled away.
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How much do retirees spend per month in the United States?
According to the Bureau of Labor Statistics, the average expenditure for households headed by a person who is 65 or older is $4,345 a month. This amount is bound to get bigger as the years pass, as inflation erodes the purchasing power of money over time.
The people who have no retirement savings have said that they are counting on Social Security payments to cover their expenses in their golden years. However, the average retired worker receives $1,830.66 each month, which is less than half the cost of expenses mentioned above.
By preparing for retirement and investing wisely as early as you can, you can stay ahead of inflation and ensure that your savings grow and maintain their value. This helps protect your financial stability and allows you to cope with rising costs of living, particularly healthcare expenses as you get older.