The average retirement expenses for couple us households face can easily total over $70,000 per year, according to the U.S. Bureau of Labor Statistics' 2023 Consumer Expenditure Survey, which reports average annual spending for households headed by someone 65 or older at approximately $60,000 to $75,000 depending on income bracket.
Many couples enter retirement without a clear picture of what they will actually spend. The problem is not just the total number — it is the mismatch between expectations and reality.
This guide breaks down the real cost categories, how location changes everything, healthcare surprises, and the planning tools that give you a reliable number. You will learn what actual retired couples spend, where the money goes, and how to build a budget that survives 30 years of retirement.
Understanding the Real Cost Baseline
The average retirement expenses for couple us households report depends heavily on which data source you consult. The Bureau of Labor Statistics (BLS) Consumer Expenditure Survey is the most cited baseline. It shows households aged 65-74 spent around $64,000 annually in recent years, while those 75 and older spent closer to $52,000.
But averages hide enormous variation. A couple living in a paid-off home in a low-cost state might spend $45,000 comfortably. The same lifestyle in coastal California or the Northeast could push past $90,000.
The Employee Benefit Research Institute (EBRI) has tracked retiree spending patterns for decades. Their data consistently shows spending declines in the first 15 years of retirement, then rises again later as healthcare needs increase. This U-shaped spending curve is critical for planning the average retirement expenses for couple us households will actually face.
The Social Security Administration reports that Social Security replaces roughly 40% of pre-retirement income for average earners. That means the remaining 60% must come from savings, pensions, or continued work.
How to apply this: Pull your current annual spending from bank and credit card statements for the last 12 months, then subtract costs that will disappear in retirement — mortgage payments, commuting, payroll taxes, and retirement contributions.
Housing Costs: The Biggest Line Item
Housing consistently ranks as the single largest expense category for retired couples. The BLS data shows housing — including utilities, maintenance, property taxes, and insurance — accounts for roughly 35% of total spending for households 65 and older, making it the biggest driver of the average retirement expenses for couple us budgets.
A couple with a paid-off mortgage still faces significant costs. Property taxes alone average $3,000 to $6,000 annually nationwide, with wide state variation. Homeowners insurance adds another $1,500 to $3,000. Maintenance costs typically run 1% to 2% of home value per year, according to data compiled by the Joint Center for Housing Studies at Harvard University.
Consider a couple in suburban Ohio with a $280,000 paid-off home. Their annual housing costs might include $4,200 in property taxes, $1,800 in insurance, $3,000 in maintenance, and $3,600 in utilities — roughly $12,600 total before any renovations or major repairs.
Downsizing is a common strategy, but transaction costs eat into the savings. Selling a home typically costs 6% to 8% of the sale price in commissions and fees.
How to apply this: Create a housing line item in your retirement budget that includes taxes, insurance, utilities, and a maintenance reserve of at least 1% of home value annually, even if your mortgage is paid off.
Healthcare: The Expense That Surprises Everyone
Healthcare is where the average retirement expenses for couple us projections most often go wrong. Fidelity Investments publishes an annual Retiree Health Care Cost Estimate. Their 2024 estimate projected that a 65-year-old couple retiring that year would need approximately $315,000 saved after tax just for healthcare costs throughout retirement.
That figure does not include long-term care. It covers Medicare premiums (Parts B and D), supplemental coverage like Medigap or Medicare Advantage, dental, vision, hearing, and out-of-pocket prescription costs.
Medicare Part B premiums are income-adjusted. Higher-income couples pay more through Income-Related Monthly Adjustment Amounts (IRMAA). In 2025, the standard Part B premium is $185 per month per person, but couples with modified adjusted gross income above $212,000 pay significantly more.
The U.S. Department of Health and Human Services reports that about 70% of people turning 65 will need some form of long-term care. The median annual cost of a private room in a nursing home exceeds $115,000, according to Genworth's Cost of Care Survey. Home health aides average $33 per hour.
How to apply this: Add a dedicated healthcare line item to your retirement budget starting at $8,000 to $12,000 per year per couple for premiums and out-of-pocket costs, and separately evaluate long-term care insurance or self-funding options.
Location and Lifestyle: Your Biggest Controllable Variables
Where you live changes the average retirement expenses for couple us more than almost any other factor. The Council for Community and Economic Research publishes a Cost of Living Index comparing over 250 urban areas. The most expensive metro areas cost 40% to 60% more than the national average, while the least expensive cost 20% to 30% less.
State tax policy matters too. Some states, including Florida, Texas, and Nevada, have no state income tax. Others exempt Social Security benefits from taxation but tax pensions and retirement account withdrawals aggressively. The Tax Foundation maintains current state-by-state tax maps showing exactly how each state treats retirement income.
Lifestyle choices compound location differences. A couple who travels internationally twice a year might spend $12,000 to $20,000 annually on travel alone. A couple who prefers local activities might spend under $3,000.
One common scenario: a couple retires to a lower-cost state and immediately adds back the savings through a larger home, a second car, and more dining out. The move saves nothing because lifestyle inflation followed them.
How to apply this: Run a side-by-side comparison of your current location versus two alternative retirement destinations using cost-of-living data, state tax treatment of retirement income, and realistic estimates of your intended lifestyle in each place.
Budgeting Tools and Planning Resources
Several real tools make estimating the average retirement expenses for couple us significantly easier. The BLS Consumer Expenditure Survey tables let you filter spending data by age, income, and household size — the most direct way to see what actual retired couples spend.
For healthcare-specific projections, Fidelity's Retiree Health Care Cost Estimate provides an interactive calculator based on your age, location, and Medicare choices.
For comprehensive retirement planning, NewRetirement offers a free planner that models spending, taxes, Social Security timing, and healthcare costs over a 30-year horizon. It is one of the few tools that treats expenses dynamically rather than assuming a flat withdrawal rate.
The Consumer Financial Protection Bureau also offers a free Retirement Planning Worksheet that walks you through current spending, expected changes, and a realistic retirement budget.
| Expense Category | Typical Annual Range for Couples | What to Check |
|---|---|---|
| Housing | $12,000 - $30,000 | Taxes, insurance, maintenance reserve |
| Healthcare | $8,000 - $18,000 | Medicare premiums, IRMAA, out-of-pocket |
| Food | $6,000 - $12,000 | Groceries plus dining out |
| Transportation | $5,000 - $12,000 | Car payment, insurance, fuel, maintenance |
| Travel/Leisure | $3,000 - $20,000 | Varies most by lifestyle |
| Taxes | $3,000 - $15,000 | Federal, state, property |
How to apply this: Pick one tool from the list above and enter your actual numbers this week. The BLS tables give you a reality check; NewRetirement gives you a full projection of the average retirement expenses for couple us households like yours.
Frequently Asked Questions About average retirement expenses for couple us
What is considered a comfortable average retirement expenses for couple us?
A comfortable level for most couples falls between $65,000 and $90,000 annually, assuming a paid-off home. This covers housing costs, healthcare, food, transportation, and moderate travel. Couples with expensive hobbies or second homes may need $120,000 or more.
The key variable is whether your income sources — Social Security, pensions, and portfolio withdrawals — can sustain that level for 30 years without running out.
For most couples, a comfortable average retirement expenses for couple us total falls between $65,000 and $90,000 annually with a paid-off home.
How much do average retirement expenses for couple us drop after age 70?
Spending typically drops 20% to 30% between ages 65 and 75 as couples travel less and downsize. But healthcare spending rises sharply after 75, offsetting much of the decline. The BLS data shows households 75 and older spend about 15% less overall than those 65-74, but a much larger share goes to healthcare and housing.
After age 70, average retirement expenses for couple us often drop 20% to 30%, though rising healthcare costs offset part of that decline.
Do average retirement expenses for couple us include long-term care?
No. Standard retirement expense estimates exclude long-term care costs, which can add $50,000 to $115,000 per year for nursing home care. This is the single largest unplanned expense risk. Couples should either purchase long-term care insurance in their 50s or early 60s, or explicitly set aside assets to self-fund this risk.
Standard estimates of average retirement expenses for couple us exclude long-term care, which can add $50,000 to $115,000 per year.
How does Social Security affect average retirement expenses for couple us?
Social Security covers a significant portion of spending for most couples. The average retired couple receives approximately $2,900 to $3,800 per month combined, depending on claiming ages and earnings history. That covers 40% to 60% of typical expenses. The gap must come from savings, which is why knowing your total expense number matters before you claim.
Social Security offsets a large share of average retirement expenses for couple us, paying roughly $2,900 to $3,800 monthly combined.
Can average retirement expenses for couple us vary by $30,000 or more between states?
Yes. Moving from a high-cost state like California or New York to a lower-cost state like Tennessee or South Dakota can reduce annual expenses by $15,000 to $30,000. Housing, taxes, and insurance account for most of the difference. However, proximity to family, healthcare quality, and climate preferences should factor into any relocation decision.
Planning Your Number
The average retirement expenses for couple us households should plan for is not a single number — it is a range built from your specific housing situation, health status, location, and lifestyle goals. The BLS baseline of $60,000 to $75,000 gives a starting point. Your actual number may be meaningfully higher or lower.
Key takeaways:
- Housing and healthcare together consume 50% or more of most retirement budgets
- Healthcare costs alone require roughly $315,000 in savings for a couple retiring at 65
- Location and lifestyle choices can swing annual expenses by $30,000 or more
- Real tools like BLS data, Fidelity's healthcare estimator, and NewRetirement make planning concrete
Start by tracking one full year of current spending. Subtract what disappears in retirement. Add what increases — healthcare and leisure. Compare your result against the BLS baseline for your age group. That comparison gives you a defensible average retirement expenses for couple us number to plan against, not a guess.
