Retirees Spend Nearly $8,000 Annually on Healthcare

Retirement brings a drop in many expenses, but healthcare is not one of them.

U.S. households led by someone 65 or older spend an average of $7,799 per year on healthcare, according to federal data from 2024. That equals 12.7% of total senior household spending, making healthcare the fourth-largest category after housing, transportation, and food.

Health insurance is the biggest cost, averaging $5,107 per year, or about $426 a month. Medical services follow at $1,449 annually, covering hospital care, doctor visits, and nursing homes. Drugs cost seniors $898 per year, and medical supplies-including items like hearing aids and eyeglasses-add $344.

For context, all U.S. households spend $6,197 annually on healthcare, roughly 8% of total expenses.