Do Expenses Really Drop in Your 70s? Here’s What the Average American Household Spends

The Average 70-Something Household Spends About $5,165 a Month

Many Americans spend decades preparing financially for retirement, hoping to maintain their lifestyle once they stop working. And many assume their regular costs will drop in their 70s and beyond.

Data from the Bureau of Labor Statistics’ Consumer Expenditure Survey (2024) reveals that there is some truth to this assumption, although the specifics may be more complex than those in retirement may expect. On average, a 70-something household reported spending about $5,165 per month in 2024, based on annual expenses of $61,977.

This is, in fact, a drop compared to other demographics. Respondents ages 65–74 reported monthly costs averaging about $5,372 ($64,461 annually), and those ages 55–64 had even higher expenses ($7,038 per month and $84,452 per year, on average).

Healthcare Isn’t the Biggest Expense—Or Even the Second Biggest

Breaking down average annual expenses for households in their 70s, the data reveals how those in the later stages of life prioritize their spending. Surprisingly, healthcare costs are only the third-largest annual expense, averaging $7,387 per year for those ages 70–79. Within that, health insurance is the largest expense, with an average annual cost of $5,318. Both the cost of health insurance and the overall cost of healthcare for those ages 70–79 are higher than corresponding average costs for survey respondents in any younger age group.

So what comes in above healthcare? The top spot for annual spending for 70-somethings goes to housing, at $21,185 on average per year. That consists of $13,241 for shelter costs, $6,160 for utilities and household operations, and $1,784 in housekeeping expenses.

Transportation is the second-biggest expense for those in their 70s, costing $10,071 per year on average. Even in their 70s, many households maintain at least one vehicle, keeping transportation costs elevated despite lower commuting needs. While respondents in this age bracket dedicated more than 16% of their overall annual spending to transportation costs, the total dollar amount spent was still lower than for any other age group except for those under 25.

What Shrinks in Your 70s—And What Still Takes a Big Bite

Those approaching their 70s might be happy to learn that many other spending categories—food at home and out of the house, alcoholic beverages, apparel and services, and entertainment, for example—all tend to drop for survey respondents in their later years. These expenses tend to be lower on average for 70-somethings than most other age groups.

That doesn’t necessarily mean these expenses won’t still add up. Those in their 70s still reported spending about $10,650 on food costs per year, on average, with about two-thirds of those costs going to food at home and the remainder to meals out. Apparel and services, alcoholic beverages, and several other categories are also only slightly down from average levels for those ages 65–74.

One big change for 70-somethings is the average cost for insurance and pension contributions. These expenses averaged $2,803 per year for this age group, compared to as high as $15,023 for respondents ages 45–54. On the other hand, 70-somethings had the biggest outlays for cash contributions to others, at $3,678 on average per year. That includes money sent to children living away from home, alimony, and child support as well as charitable, religious, and political donations.

For Americans approaching retirement, the takeaway is that expenses may ease in your 70s, but they don’t disappear. Some categories shrink, while others—especially healthcare and housing—continue to demand a meaningful share of the budget. Planning for retirement, then, may be less about assuming costs will fall and more about understanding how they change.