Let’s get real about planning: What an average retirement costs

The gray-haired couple sipping champagne on a beach at sunset. Grandpa teaching the grandkids how to fish at the family lake house. Are these scenes of carefree times in retirement based on financial reality?

According to the latest Bureau of Labor Statistics data, which is based on 2016 figures, “older households” — defined as those run by someone 65 and older — spend an average of $45,756 per year, or roughly $3,800 a month. That’s about $1,000 less than the monthly average spent by all U.S. households combined.

Naturally, your spending in retirement will vary based on countless variables, including the price of your preferred champagne and the annual property taxes on that lake house (if those things happen to be on your retirement vision board). Read on to learn how retirees’ spending habits tend to differ from the working population, and how you can plan for your personal post-work needs….

Read More: https://www.usatoday.com/story/money/personalfinance/retirement/2018/05/31/what-does-an-average-retirement-cost/35455427/