Retired Canadians spend, on average, $2,400 per month ($28,800 per year). Housing accounts for the single largest monthly expense (an average of $668), finds a BMO Financial Group study.
Other expenses include, on average:
- $581 for living expenses such as bills, clothing and transportation
- $442 for food, including groceries and eating out
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- $282 for travel
- $167 for entertainment
- $151 for medical expenses
According to the study, 55% of Canadians have spent large amounts (roughly $10,000 or more) on single items in retirement. Expenditures include:
- Purchasing a new vehicle (41%)
- Major home renovation (22%)
- Giving a large sum to family members (11%)
The study also asked retirees what surprised them most when they made the transition to this life stage. Top responses were:
- Not having enough time in the day to do everything they would like (37%)
- Savings are not as sufficient as they thought (25%)
- Spending less money than they thought they would (25%)
- Traveling less than they thought would (23%)
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- Spending more money than they thought (21%)
- Seeing friends and family more than they thought (21%)
- Experiencing an onset of declining health sooner than expected (21%)
Two thirds of retired Canadians spend their time with friends and family. Sixty percent pursue hobbies, 49% travel and 29% volunteer or do board work.
Regional breakdown:
Region | Average amount spent on expenses per month/year | Top monthly expense | % who made a large purchase ($10,000 or more) after retirement | % most popular large purchase is a new vehicle | % surprised that they do not have enough time in retirement | ||||
National | $2,400/ $28,800 | Housing | 55 | 41 | 37 | ||||
Atlantic | $1,975/ $23,700 | Bills, clothing, transportation | 56 | 43 | 39 | ||||
Quebec | $2,214/ $26,568 | Housing | 59 | 47 | 44 | ||||
Ontario | $2,534/ $30,408 | Housing | 48 | 30 | 36 | ||||
Alberta | $2,648/ $31,776 | Bills, clothing, transportation | 66 | 50 | 30 | ||||
B.C. | $2,073/ $24,876 | Housing | 56 | 50 | 36 |