- Mortgage – According to the Bureau of Labor Statistics, 61.7% of Americans between the age of 65 and 74 don’t have mortgage debt, and 82.5% of Americans 75 and older are mortgage-free. But to make this clear, not all housing costs will disappear in retirement. Your mortgage might be paid off, but you’ll still spend on home maintenance, property taxes, and utilities.
- Education – The numbers are great: the average retired household spends only $350 a year for any education, from pre-K through college, which is 79% less than any working household. And even if you consider going back to school as a retiree, there are lots of programs that offer classes free of charge.
- Insurance – You’ll spend less money on insurance (health coverage being excluded) once you hit retirement age. The average working household spends $8,100 a year on insurance, including annuities, life insurance and other personal insurance plans. But as you retire, the numbers drop to $2,840.
- Alcohol & Tobacco – This one was pretty obvious: in retirement, many Americans are less stressed, therefore they smoke and drink less. After a few years of retirement, reports are showing how adults are less at risk for serious illnesses, and less likely to feel lonely, which lowers the need for drinking and smoking.
- Pets & pet supplies – Many retirees adopt a pet in retirement because there are lots of benefits to it. A four-legged friend will provide you with companionship, and encourage regular exercise. But it doesn’t need to be expensive: retired households spend approximately $477 on average on pets and pet supplies.
- Taxes – Many states lower property taxes for those who are older than 65, in an effort to ease the financial burden on retirees.
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