7 Major Expenses That Shrink When You Retire

1. Transportation

Heavy traffic on freeway from Maryland into D.C.
Andrea Izzott / Shutterstock.com

The daily grind can wear away at a worker’s wallet. But when you exit the workforce, much of the money you otherwise would have spent on getting to and from work will remain in your pocket.

Indeed, U.S. households overall spend an average of $9,735 a year on transportation — costs such as vehicles, gas and insurance — according to the Bureau of Labor Statistics’ latest data on consumer spending.

However, as we recently reported in “Here Is How Much American Retirees Spend in a Year,” households led by someone who is 65 or older spend an average of $7,472 per year on transportation. That’s a savings of more than $2,200 annually.

Read Next

6 Types of People Who Can’t Rely on Social Security
6 Types of People Who Can’t Rely on Social Security

Social Security retirement benefits aren’t a guarantee. If you fall into one of these groups, don’t assume that you will receive benefits.

7 Effortless Ways to Make Extra Money
7 Effortless Ways to Make Extra Money

In the digital age, new ways of earning cash crop up all the time — and some require little effort on your part.

7 Ways to Save Even More at Dollar Stores
7 Ways to Save Even More at Dollar Stores

Yes, it’s possible to pay less than a buck for items from a dollar store. Here’s how.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Comments