If you are married and planning retirement, one number sits behind almost every decision: how much will the two of you actually spend each month once the paychecks stop?
Federal spending data gives a solid starting point. Households headed by someone 65 to 74 spent an average of $65,354 in 2024, according to the Bureau of Labor Statistics Consumer Expenditure Survey. That is about $5,446 a month. For all households headed by someone 65 or older, the figure is $61,432 a year, or $5,119 a month.
Below you will find where that money goes, a sample budget for a retired couple, how it compares with Social Security, and the costs that averages tend to miss.
Where the money goes
Here is the BLS breakdown for households headed by someone 65 to 74, converted to monthly amounts. Most of these households are couples or single people, so treat this as a typical retiree household rather than an exact couple figure.
| Category | Monthly average | What it includes |
| Housing | $1,861 | Mortgage interest or rent, property tax, insurance, repairs ($1,062), utilities ($388), household services ($124), furnishings and supplies ($287) |
| Transportation | $951 | Car purchases ($378), maintenance, repairs and other vehicle costs ($298), car insurance ($144), fuel and other costs |
| Food | $707 | Groceries ($470) and eating out ($237) |
| Health care | $643 | Health insurance premiums, including Medicare ($426), medical services, drugs and supplies |
| Personal insurance and pensions | $382 | Life insurance and payroll taxes for those still working |
| Entertainment | $260 | Travel-related fun, hobbies, pets, streaming and equipment |
| Cash contributions | $243 | Gifts to family, charity and support of others |
| Apparel | $115 | Clothing and shoes |
| Personal care | $68 | Haircuts and personal products |
| Everything else | $216 | Education, reading, alcohol, tobacco and miscellaneous |
| Total | $5,446 |
Source: BLS Consumer Expenditure Survey, 2024, households with a reference person 65 to 74 (via FRED). Monthly figures are annual totals divided by 12.
Housing, transportation and food make up about 65% of the budget. Health care is the fourth largest category, and it is the one that tends to rise with age.
A sample budget for a retired couple
Averages blend renters and owners, big spenders and frugal ones. This sample is for a couple in their late 60s who own a paid-off home, keep one car and use Original Medicare with a supplement.
| Expense | Monthly amount | Note |
| Property tax, home insurance and upkeep | $700 | Estimate; highly dependent on state |
| Utilities | $400 | Estimate |
| Groceries | $777 | USDA moderate-cost food plan for a man and a woman 51 to 70, August 2026, with the 10% two-person adjustment |
| Eating out | $250 | Estimate |
| Car insurance, fuel and maintenance | $430 | Estimate |
| Savings for the next car | $250 | Estimate; about $30,000 every 10 years |
| Medicare Part B for two | $406 | 2026 standard premium of $202.90 each |
| Medigap and Part D drug plans for two | $400 | Estimate; varies by state and age |
| Dental, vision, hearing and copays | $200 | Estimate |
| Phone, internet and streaming | $200 | Estimate |
| Clothing and personal care | $150 | Estimate |
| Travel and entertainment | $350 | Estimate |
| Gifts and charity | $150 | Estimate |
| Buffer for irregular costs | $250 | Recommended cushion |
| Total | about $4,910 |
That lands close to the BLS average for all 65+ households. If this couple rented instead, paying $1,500 a month in rent and renters’ insurance, the total would rise to roughly $5,700. With a remaining mortgage payment, it could easily top $6,000.
How it compares with Social Security
The Social Security Administration puts the average monthly benefit for a retired couple, both receiving benefits, at $3,208 in 2026.
| Scenario | Monthly budget | Average couple Social Security | Monthly gap | Yearly gap |
| Own home, no mortgage | $4,910 | $3,208 | $1,702 | $20,424 |
| Renting | $5,710 | $3,208 | $2,502 | $30,024 |
| BLS average, 65 to 74 household | $5,446 | $3,208 | $2,238 | $26,856 |
A common rule of thumb is that you can withdraw about 4% of your savings in the first year of retirement and adjust for inflation after that. By that measure, a $20,000 yearly gap needs about $500,000 in savings, and a $30,000 gap about $750,000. Pensions, annuities and part-time work all reduce how much needs to come from savings.
Remember that Social Security is taxable for many couples, and Medicare premiums are usually taken out of the check, so the amount that arrives in your bank account is lower than the gross benefit.
How spending changes through retirement
Retirement spending is rarely a straight line. BLS data shows households headed by someone 75 or older spend about $55,834 a year, around 15% less than those 65 to 74. The drop comes mostly from travel, cars, clothing and entertainment.
Many planners describe three phases:
- Early retirement (roughly 62 to 74). More travel and activity, often the highest spending years.
- Middle retirement (75 to 84). Less travel, fewer car purchases, spending settles down.
- Later retirement (85 and older). Health care and help at home become the biggest costs, and spending can rise again.
Costs couples often forget
- Health care outside Medicare. Original Medicare does not cover routine dental, most hearing aids or routine vision care. Budget for them separately.
- Home repairs. A roof, a furnace or a water heater can each cost thousands. Setting aside 1% to 2% of your home’s value each year is a common guideline.
- Replacing a car. Many retirees buy at least one more car. Saving a set amount monthly avoids a large withdrawal later.
- Helping family. Gifts, loans and help with grandchildren add up. The BLS figure for cash contributions averages $243 a month.
- Rising insurance premiums. Home and car insurance have increased faster than inflation in many states.
- Taxes. Withdrawals from traditional IRAs and 401(k)s are taxed as income. Required minimum distributions now start at 73 for most people.
- Long-term care. Assisted living has a national median cost of $6,200 a month. A plan for how you would pay for care is part of a couple’s budget.
Planning for when one spouse dies
This is hard to think about, but it matters for the budget. When one spouse dies, the household keeps only the larger of the two Social Security checks. Many costs, such as housing, stay the same. The survivor also moves to single tax brackets, which can raise the tax bill even as income falls. Couples who plan for this, for example by having the higher earner delay Social Security to raise the survivor benefit, give the surviving spouse a much stronger footing.
If you are in your 40s or 50s
The couples who retire with the most breathing room usually did three things in their 40s and 50s. They paid down the mortgage so housing costs would fall at retirement. They used catch-up contributions from age 50 to save more in their 401(k)s and IRAs. And they tracked their actual spending for a year or two, so their retirement budget was based on real numbers instead of guesses. If you start any of these now, you will have a much clearer picture of the gap between what you will spend and what you will receive.
Five steps to build your own couple’s budget
- Pull a year of real spending. Bank and card statements beat guesswork.
- Strip out work costs such as commuting, work clothing and retirement contributions.
- Add retirement costs: Medicare premiums for both, supplements or Advantage plans, drug plans, dental and travel.
- Separate essentials from extras. Knowing your floor helps you decide how much guaranteed income you need.
- Stress test it. Try a year with a big health bill, a new roof and 4% inflation, and see whether your plan still works.
Frequently asked questions
What is a good monthly retirement income for a couple? Many couples need roughly $5,000 to $6,000 a month to maintain a typical lifestyle, based on BLS spending data for households 65 to 74. Your figure depends mostly on housing, health and travel.
How much does the average retired couple spend on groceries? USDA’s moderate-cost food plan for a couple aged 51 to 70 comes to about $777 a month with the two-person adjustment. BLS data shows households 65 to 74 spend about $470 a month at the grocery store and $237 eating out.
Is $4,000 a month enough for a retired couple? It can be for couples who own their home outright in a lower-cost state and keep other expenses modest. In higher-cost states, or if you rent, it is likely to be tight.
Sources
- U.S. Bureau of Labor Statistics, Consumer Expenditure Surveys 2024, reference person 65 to 74, 65 and older, and 75 and older (via FRED)
- Social Security Administration, 2026 COLA fact sheet (average benefit for aged couples)
- USDA Food and Nutrition Administration, Official Food Plans, August 2026
- Centers for Medicare and Medicaid Services, 2026 Part B premium
- CareScout, Cost of Care Survey 2025
Sample budgets are illustrative. Your costs will differ. This article is general information, not financial advice.
