|by Nanci Hellmich, USA TODAY|
Home and home-related costs are the biggest expense for people 50 and older, accounting for 40% to 45% of their household budgets, says a report out today from the non-profit
In 2011, people ages 65 to 74 spent an average of
Home-related expenses include mortgages, property taxes, homeowner's or renter's insurance, rent, utilities, home repairs, home furnishings, housecleaning supplies, housekeeping and laundry services, gardening and yard supplies, and gardening and yard services.
"This remains the largest spending category for people 50 and above, and it has been that way since the survey started in 2001," says
The dollar amount people spend on these expenses decreases with age, but the share of the household budget remains about the same because their overall spending tends to go down too, he says.
On the other hand, health expenses increase steadily with age. Households with at least one member between the ages 50 to 64 spent 8% of their total household budget on out-of-pocket medical expenses, an average of
Health expenses include all out-of-pocket costs including health insurance costs, prescription and non-prescription drugs, hospital care, doctor services, lab tests, eye, dental, and nursing home care and out-of-pocket costs for medical supplies.
Both transportation and entertainment expenses go down with age as people commute and eat out less, but food and clothing remain almost the same as a percentage of people's household budgets, Banerjee says.
Another report from the institute found that about 36% of workers have less than