How Much the Average Retiree in Europe Spends Monthly
Written by
Katie Wudel
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The retirement phase of life brings many changes. During this time, it’s important to adjust spending and make changes that will help preserve your nest egg. In the United States, roughly 48% of retirees said they spent less than $2,000 a month in 2022, according to the Bureau of Labor Statistics.
How do retirees in Europe compare? Here’s a look at the typical monthly spending habits of the average retiree across various European countries.
Understanding Retirement Spending Patterns
Retirement spending patterns can vary significantly across Europe due to differences in living costs, lifestyles, and pension systems. Generally, retirement spending revolves around essential expenses such as housing, healthcare, food, utilities, and discretionary spending like travel, leisure, and hobbies.
Northern and Western Europe
Monthly expenditures for retirees across Northern and Western Europe vary, influenced by factors like national pension schemes, personal saving trends, and each country’s economic situation. In Northern European nations such as Norway and Sweden, retirees often have higher savings on average, thanks to strong pension systems and a tradition of personal saving.
Living in Norway typically costs about 17% more than in the United States, excluding rent. Monthly living expenses range from $2,176 to $4,352. Housing costs are notably high, with rent prices varying based on location and property type.
The average monthly public pension in Sweden is roughly $1,490. While the cost of living in Sweden is generally less than in Norway, it remains comparatively high compared to other European nations. Notable retirement destinations in Sweden, such as Gothenburg, average around $1,763.
Southern Europe
In Southern European countries like Spain and Greece, the cost of living is generally lower, but so are the pension incomes. In Spain, retirees can comfortably sustain themselves on roughly $2,000 to $2,200 monthly. Choosing to reside in areas further from major cities could reduce this amount to $1,700 to $1,900 monthly.
In Greece, the cost of living for retirees is among the lowest compared to the other locations. In this country, the average monthly expenditure is around $1,171.
Central Europe
For Czechia (widely known as the Czech Republic), particularly in Prague, retirees can expect average monthly living costs to be around $1,479. One significant factor influencing retirement spending in Europe is healthcare.
Northern and Western European countries, with their well-established healthcare systems, offer substantial support, thereby reducing out-of-pocket expenses for retirees. In contrast, in Southern and Eastern Europe, retirees may face higher healthcare costs, impacting their overall monthly expenses.
Lifestyle and Discretionary Spending
Lifestyle choices and discretionary spending also play a role in determining a retiree’s monthly expenses. Those who travel frequently or engage in expensive hobbies will naturally have higher expenditures. In countries like France and Italy, where there is a strong culture of dining out and social activities, retirees might spend more on leisure activities compared to their counterparts in more frugal societies.
The Role of Housing Costs
Housing is another significant expense for retirees across Europe. In countries with high property prices like the UK and Sweden, retirees who do not own their homes outright can expect a substantial portion of their pension to go toward rent or mortgage payments. In countries with lower property costs, such as Portugal and Greece, housing expenses take up a smaller chunk of the retirement budget.
Planning for Retirement in Europe
If you’re planning for retirement, understanding these spending patterns is essential. It’s important to consider the cost of living, the quality of life, and the level of social and healthcare services available in different European countries (if you’re planning to retire in Europe). Also, account for inflation and the potential for fluctuating expenses, particularly in healthcare and housing.
Bottom Line
The monthly expenditure of retirees in Europe varies widely, influenced by regional cost of living, lifestyle choices, healthcare costs, and housing expenses. Understanding these factors is key if you’re preparing for retirement in Europe. With the right plan in place, you can maintain a comfortable and financially secure lifestyle in your later years.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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