Exhibit 18-4 How “average” older (65–74 and 75+) households spend their money
Retired families spend a greater share of their income for food, housing, and medical care than nonretired families.
| Age 65–74 | Age 75 & Older | |||
|---|---|---|---|---|
| Average $Amount | Percent | Average $Amount | Percent | |
| Pretax annual income | $ 52,366 | 100 | $ 35,467 | 100 |
| Annual expenditures | $ 48,855 | 100 | $ 36,673 | 100 |
| Housing | $ 15,838 | 32.4 | $ 13,375 | 36.5 |
| Food | $ 6,284 | 12 | $ 4,349 | 11.9 |
| Clothing | $ 1,417 | 2.9 | $ 683 | 1.9 |
| Transportation | $ 8,338 | 17.1 | $ 5,091 | 13.9 |
| Health care | $ 5,456 | 12.2 | $ 5,708 | 15.6 |
| Entertainment | $ 2,988 | 6.1 | $ 1,626 | 4.4 |
| Pensions and Social Security | $ 2,788 | 5.7 | $ 800 | 2.2 |
| Other* | $ 6,074 | 11.6 | $ 5,041 | 13.7 |
*Includes cash contributions, alcohol, tobacco, personal care products and services, reading, education, life and personal insurance, and miscellaneous expenses.
Source: Ann C. Foster, “A Closer Look at Spending Patterns of Older Americans,” Beyond the Numbers: Prices and Spending, volume 5, number 4 (U.S. Bureau of Labor Statistics, March 2016), https://www.bls.gov/opub/btn/volume 5/spending-patterns-of-older-americans.htm, accessed June 8, 2018.