Cost of Living for Elderly Americans: Monthly Expense Breakdown and Considerations
The cost of living for elderly Americans varies immensely based on lifestyle choices and geographical location. While broad estimates can provide a general idea, individual financial planners often recommend around $1 million in IRA savings for stability and peace of mind during retirement. However, these figures can be misleading without considering specific personal circumstances.
Lifestyle-Based Costs
The cost of living as an elderly person in the United States can range widely depending on how one chooses to live. For instance, sleeping under a bridge and relying on meals from charitable organizations could mean living on only your Social Security check. On the other hand, expenses can skyrocket, reaching nearly $300,000, as was the case for the author during a period of extensive healthcare treatment for breast cancer.
Location-Specific Expenditures
Factors such as rent, water, electricity, and insurance are consistent across different parts of the country, much like for individuals with regular incomes. However, the actual amount can differ greatly based on location. The average cost of living for a single senior in the United States was$996 per month in 2019, rising to $1,397 for a couple, translating to approximately $33.40 and $46.77 per day, respectively.
Adjusting to Changing Circumstances
Seniors with savings, pension plans, and access to Social Security may enjoy a more comfortable lifestyle, but those without such resources may face higher costs and inflation. Adjustments to expenses may be necessary. For example, utilities, fuel, food, and other essential expenses have been increasing, while income remains stagnant for many retirees. Vacation, dining out, and unnecessary clothing are among the first expenses to be cut.
Support Systems and Programs
Fortunately, there are supplemental rent, food, and medical programs available for seniors. These programs, such as those offered through government and nonprofit organizations, can provide much-needed assistance. It is essential for seniors to look for and apply for these programs if needed to ensure their basic needs are met.
Overall, living as an elderly person in the United States costs a significant amount, with average monthly expenses varying from $996 for a single senior to $1,397 for a couple. Lifestyle, location, and financial resilience play crucial roles in determining these costs. Understanding the factors that influence the cost of living and exploring available resources can help ensure a secure and comfortable retirement.