The average retiree spends $4,622 on monthly expenses, and burns most of that on these 4 things

Core Insights - The average annual income for Americans aged 65 and older is approximately $65,468, while their average annual spending is about $60,087, leaving limited funds for unexpected expenses [1][2] Spending Categories 1. Housing - Housing costs are the largest expense for retirees, amounting to $21,445 annually. Downsizing or relocating to less expensive areas may help reduce these costs [3][4] 2. Transportation - Transportation is the second-largest expense, with retirees spending about $9,033 annually. Alternatives like public transit or reducing the number of vehicles can help cut costs [5][6] 3. Healthcare - Healthcare spending for retirees averages $8,027 annually. Preventative care can help manage health-related expenses effectively [7]