The Average Retiree Household Spends $65,354 a Year.
Social Security Covers About Half
Here’s What Covers the Rest. Quick Read – Average retiree households spend $61,432 a year, but Social Security pays only about $24,850 annually, leaving a gap of roughly $37,000. – 81% of retirees supplement Social Security with private income, including pensions (56%), investment income (48%), or 401(k)/IRA withdrawals (33%). – Medicare Part B withholds $203 a month from Social Security checks before deposit, shrinking the net benefit retirees actually receive. – The U.S. Bureau of Labor Statistics puts average annual spending for households headed by someone 65 to 74 at $65,354 in 2024, based on the latest Consumer Expenditure Survey data.
That is lower than the $78,535 average across all households, but it remains a significant annual bill for housing, food, transportation, insurance, and healthcare. The central question for retirees is simply what covers those costs. Social Security is the anchor of retirement income for most households.