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Housing costs consume nearly $1 in every $3 spent by retirees
The Federal Reserve data cited shows the average retiree spent $22,079 a year on shelter in 2024, making it about 37% of total spending.
According to Moneywise and Yahoo Finance, citing the Federal Reserve’s Consumer Expenditure Survey, the average retiree spent about $59,616 in 2024, or roughly $5,000 per month, with annual budgeting centered on the amount needed to sustain day-to-day life.
Housing was identified as the largest line item. The outlet said typical retirees spent $22,079 per year on shelter-related costs in 2024, which it calculates as nearly 37% of the average total budget.
The story also points to mortgage exposure among older Americans, noting that nearly 41% of adults ages 65 to 79 had a mortgage on their primary home, according to a 2023 report from Harvard’s Joint Center for Housing Studies.
It concludes that for retirees looking to reduce costs, housing-related decisions such as shopping for mortgage interest rates or comparing home insurance policies could have a meaningful impact on the overall budget.