How Much the Average Retiree Spends Yearly: Middle Class vs. Upper Class

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Retirement spending typically looks different depending on how much income you have. While some are focused on being able to afford the basics and keeping costs affordable, others spend more freely on housing upgrades, travel and lifestyle comforts.

Using the latest spending data released in 2024 from the Bureau of Labor Statistics (BLS) and retirement spending breakdowns from the Social Security Administration (SSA), here’s how much the average 65-year-old retiree spends in a year. Plus, how middle-class and upper-class retirement budgets compare.

Defining Middle-Class and Upper-Class Retirees

Comparisons between these two income classes come from the BLS Consumer Expenditure Survey for households with a reference person age 65 or older. These income brackets are widely used in retirement research and align with prior GOBankingRates coverage:

• Middle-class retirees: $50,000 to $99,999 in annual household income
• Upper-class retirees: $100,000 or more in annual household income

How Much the Average Middle-Class Retiree Spends Per Year

Middle-class retirees tend to spend carefully. But, they still face rising costs in several key categories like housing and healthcare. 

According to the BLS, retirees age 65 and older who have retirement income between $50,000 to $69,999 spend an average of $59,599 per year. And those who earn above that to just under $100,000 spend around $71,506 annually.

These numbers mean that retirees who are middle class spend roughly $5,000 to $6,000 per month.

How Much the Average Upper-Class Retiree Spends Per Year

Upper-class retirees spend significantly more overall. It’s most likely because they have more discretionary income and make different housing choices. 

Households in this income bracket spend an average of $106,150 per year, or around $8,850 per month. That’s about $35,000 more than middle-class retirees. 

A prior GOBankingRates analysis also found upper-class retirees often spend well into the six figures annually, depending on location and lifestyle.

Housing Is the Biggest Spending Difference

Housing is the single largest expense for both groups. However, upper-class retirees spend far more in actual dollars, according to BLS:

• Middle class: About $21,000 to $24,600 per year on housing
• Upper class: Roughly $33,600 per year

Higher property taxes, larger homes and second residences also contribute to the spending difference. 

Healthcare Costs Rise With Income

Healthcare remains a major retirement expense regardless of income. Upper-class retirees spend slightly more on premiums, supplemental coverage and out-of-pocket care:

• Middle class: Around $8,200 to $9,200 per year
• Upper class: Over $11,000 per year

The above data from the Social Security Administration’s Expenditures of the Aged Chartbook shows that while healthcare takes up a smaller percentage of income for wealthier retirees, it’s still a larger dollar overall.

The Gap Between Transportation, Travel and Lifestyle Spending 

Transportation and discretionary spending have some of the biggest spending differences between middle- and upper-class retirees: 

• Middle class: About $9,600 to $10,500 per year on transportation
• Upper class: Roughly $13,800 per year

Retirees with higher income sources are also far more likely to spend on travel, entertainment and personal services.

Food Spending Reflects Lifestyle Choices

Food costs increase with a retiree’s income, in particular with dining out. The differences can be staggering:

• Middle class: Roughly $7,700 to $9,000 per year
• Upper class: About $12,100 or more per year

The increase in dining out could be because of travel upper-class retirees do or based on personal preference. 

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