Utah · Retirement Income · Budget
What Does Retirement Cost in Utah? 2026 Retiree Budget
What retirees actually spend, according to federal survey data, priced for Utah and checked against what Utah households 65 and older actually earn.
The bottom line
- U.S. households headed by someone 65 or older spent $61,432 on average in 2024: $65,354 at 65 to 74 and $55,834 at 75 and older. Income taxes are not included.
- Utah prices were about 1.1% below the national level in 2024, but Utah housing was 7.8% above it. At Utah's price level, the 65+ average is about $60,734.
- Health care is the one category that grows with age: $7,799 a year for 65+ households, 12.7% of spending against 7.9% for all households.
- Utah householders 65 and older had a median income of $70,712 in 2024, well above the national $59,648, and a 65+ poverty rate of 7.7% against 11.2% nationally.
- An average couple's Social Security in 2027, about $40,260 a year, leaves a gap of roughly $24,352 against a 65-to-74 budget at Utah prices. That gap is what pensions, savings, or an income plan has to cover.
A typical retired household in Utah spends somewhere around $55,000 to $65,000 a year before income taxes, depending mostly on age, housing, and how much they drive. That range comes from the federal Consumer Expenditure Survey, which tracks what U.S. households actually spend, adjusted for Utah's price level from the Bureau of Economic Analysis. Your own number will differ. Use these averages as a check on your budget, not as a substitute for it.
How much do retirees actually spend?
The Bureau of Labor Statistics surveys households every year on what they spend. For 2024, the most recent year published, households headed by someone 65 or older spent $61,432, about 78.2% of the $78,535 that all U.S. households spent. Spending drops again after 75, mostly because people drive less and buy fewer cars. BLS's next annual release, covering 2025, is scheduled for October 29, 2026.
Source: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, 2024 — bls.gov/news.release/cesan.nr0.htm; series CXUTOTALEXPLB0407M, LB0408M, LB0409M — data.bls.gov. A "household" here is a BLS consumer unit; averages mix single people and couples.
Where does a retiree's money go?
Housing is the biggest line by far, then transportation, food, and health care. The table compares the three retirement age groups with all U.S. households.
| Category (2024, per year) | All households | 65+ | 65–74 | 75+ |
|---|---|---|---|---|
| Housing (incl. utilities) | $26,266 | $22,193 | $22,329 | $21,999 |
| Shelter | $16,317 | $12,995 | $12,749 | $13,346 |
| Utilities, fuels & public services | $4,736 | $4,480 | $4,653 | $4,234 |
| Transportation | $13,318 | $9,538 | $11,414 | $6,855 |
| Food | $10,169 | $7,940 | $8,483 | $7,168 |
| Health care | $6,197 | $7,799 | $7,715 | $7,918 |
| Cash gifts & donations | $2,292 | $3,158 | $2,921 | $3,497 |
| Entertainment | $3,609 | $3,025 | $3,122 | $2,888 |
| Everything else | $16,684 | $7,779 | $9,370 | $5,509 |
| Total spending | $78,535 | $61,432 | $65,354 | $55,834 |
| Income before taxes | $104,207 | $67,462 | $75,460 | $56,028 |
Mean annual expenditures by age of reference person, 2024. Source: BLS Consumer Expenditure Survey, series CXU<item>LB0401M–LB0409M — bls.gov/cex/tables.htm. "Everything else" (apparel, personal care, personal insurance and pensions, education, reading, tobacco, miscellaneous) is total spending minus the listed categories, our arithmetic.
Households 65 and older, 2024. Source: BLS Consumer Expenditure Survey.
Two patterns matter for planning. Transportation falls from $11,414 at 65 to 74 to $6,855 after 75. Health care does the opposite: it is the only major category where households 75 and older outspend every other age group shown, at $7,918. Giving also rises with age; households 75 and older gave away $3,497 on average, more than any other group in the table.
Is retirement cheaper in Utah?
A little, overall. The Bureau of Economic Analysis measures each state's price level against a national average of 100. Utah's was 98.9 in 2024. Goods were cheaper (96.4) and utilities much cheaper (78.7), but housing was more expensive (107.8). That housing index is built from rents, so it weighs most on renters and on anyone buying or downsizing into a new home. A retiree with a paid-off house feels it mainly through property taxes and insurance.
Prices also vary inside Utah. The table applies each metro area's overall price level to the national 65+ average. It is a rough adjustment, not a local survey of retiree spending.
| Area | Price level, all items (2024) | Housing price level | 65+ average spending at local prices |
|---|---|---|---|
| Utah statewide | 98.9 | 107.8 | $60,734 |
| Salt Lake City-Murray | 100.9 | 123.3 | $61,965 |
| Ogden | 100.3 | 117.9 | $61,646 |
| Provo-Orem-Lehi | 98.2 | 104.1 | $60,346 |
| St. George | 97.3 | 98.1 | $59,786 |
| Logan (UT-ID) | 95.9 | 91.0 | $58,930 |
| United States | 100.0 | 100.0 | $61,432 |
Source: U.S. Bureau of Economic Analysis, Regional Price Parities by state and metro area, 2024 (tables SARPP and MARPP) — bea.gov. Local spending figures are our arithmetic: the BLS 2024 65+ average multiplied by the area's all-items price level. The Logan metro area includes Franklin County, Idaho.
In practice, the spread between St. George and Salt Lake City is about $2,179 a year on an average retiree budget. That is less than the difference most households see from owning versus renting, or from keeping one car instead of two.
What do Utah retirees actually earn?
More than retirees nationally. The Census Bureau's American Community Survey put the median household income for Utah householders 65 and older at $70,712 in 2024, compared with $59,648 for the U.S. That is still well below Utah's all-ages median of $96,658. Utah had about 434,922 residents 65 and older in 2024, and 7.7% of them lived below the federal poverty line, against 11.2% nationally.
Social Security is the base for most of them. In 2024, 286,000 Utah households, 24.1% of all households in the state, reported Social Security income, averaging about $26,939 per household by our arithmetic on Census totals. Utah's retired workers averaged about $2,168 a month in December 2025.
Sources: U.S. Census Bureau, American Community Survey 2024 1-year, tables B19049 (median household income by age of householder), B19055 and B19065 (Social Security income), S1701 (poverty) and S0103 (population 65+) — data.census.gov; SSA Congressional Statistics, December 2025, Utah — ssa.gov.
Retiree income varies a lot by county. Among Utah's larger counties, the median for 65+ households ranges from about $60,000 in Iron County to more than $100,000 in Summit County.
Median household income, householder 65 and older, 2020–2024 American Community Survey 5-year estimates (table B19049), selected counties. Source: U.S. Census Bureau — data.census.gov. Five-year county estimates are not directly comparable to the one-year state figure above.
How much should you budget for health care?
Health care is where retiree budgets most often come up short. Households 65 and older spent $7,799 on health care in 2024: $5,107 on insurance premiums, $1,449 on medical services, $898 on drugs and $344 on medical supplies. That is 12.7% of their spending, against 7.9% for all households.
For your own budget, start with the fixed pieces. The standard Medicare Part B premium is $202.90 a month in 2026, $2,435 a year per person, with a $283 deductible. CMS had not announced the 2027 premium as of October 18, 2026. Add your Medigap, Medicare Advantage or Part D premium, then a reserve for out-of-pocket costs. Part D caps what you pay for covered drugs at $2,100 in 2026 and $2,400 in 2027. Higher-income retirees also pay IRMAA surcharges on Parts B and D.
Sources: BLS Consumer Expenditure Survey, 2024, health care detail for 65+ (series CXUHLTHINSRLB0407M, CXUMEDSERVSLB0407M, CXUDRUGSLB0407M, CXUMEDSUPPLLB0407M) — data.bls.gov; CMS, 2026 Medicare Parts A & B premiums and deductibles — cms.gov; CMS, 2027 Medicare Advantage and Part D Rate Announcement ($2,400 Part D out-of-pocket threshold) — cms.gov.
How big is the gap Social Security leaves?
Take a Davis County couple, ages 66 and 68, who spend like the average U.S. household headed by someone 65 to 74. At Utah's price level that is about $64,612 a year before income taxes. SSA estimates an average aged couple receives $3,355 a month in January 2027, after the 3.6% COLA, or about $40,260 a year. The difference is about $24,352 a year, or $2,029 a month, that has to come from somewhere else.
Here is how a Utah household can work out its own version:
- List fixed costs first. Mortgage or rent, property tax, homeowners insurance, utilities, Medicare premiums and any other insurance. These don't shrink when markets fall.
- Add flexible costs. Food, travel, gifts, hobbies, car replacement. The BLS table above is a sanity check for each line.
- Add income taxes. The BLS spending figures exclude them. IRA withdrawals and part of Social Security can be taxed by the IRS and by Utah. See our guide to how Utah taxes Social Security.
- Subtract guaranteed income. Social Security, any Utah Retirement Systems or other pension, and any annuity income. What is left is the gap.
- Decide how to fill the gap. Savings withdrawals, part-time work, home equity, or converting part of savings into guaranteed income. At a 4% first-year withdrawal rate, a common rule of thumb rather than a guarantee, our example couple's $24,352 gap would take about $608,789 in savings. Our 4% rule guide explains the limits of that rule.
- Plan for later years. Spending usually falls after 75, but health care rises, and long-term care is not in these averages at all.
Illustrative example only, not a projection for any household. Spending uses the BLS 2024 65–74 average multiplied by BEA's 2024 Utah price level; Social Security uses SSA's estimated average for an aged couple, both receiving benefits, in January 2027 — ssa.gov.
What do these averages leave out?
Three things worth knowing before you lean on them. First, they are averages: a few high spenders pull the mean up, so the typical household spends somewhat less. Second, they exclude income taxes, and they say little about long-term care: only a small share of households pays for assisted living or a nursing home in any one year, so those costs barely move the averages, but they can be large for the households that do. Third, they are 2024 dollars. Prices have risen since, which is what Social Security's 3.6% COLA for 2027 reflects. Our Utah long-term care cost guide covers that piece.
Bring your Social Security estimate, any pension statement and a rough list of monthly bills. We'll map your income gap, your 2027 Medicare costs and the options for filling the gap in plain English, with no pressure. Education, not advice. We do not offer every plan available in your area. By calling or texting, you agree we may contact you at the number you provide; reply STOP to opt out.
Talk to a planner →Frequently asked questions
How much does the average retiree spend a year?
U.S. households headed by someone 65 or older spent an average of $61,432 in 2024, according to the Bureau of Labor Statistics Consumer Expenditure Survey. Households headed by someone 65 to 74 spent $65,354, and those 75 and older spent $55,834. These figures do not include income taxes, and they are averages for households of different sizes, so a couple and a single retiree will differ.
Is retirement cheaper in Utah than the national average?
Slightly, on average. The Bureau of Economic Analysis put Utah's overall price level at 98.9 in 2024, against a national 100, so the same basket of goods and services cost about 1.1% less. Housing was the exception: Utah's housing price level was 107.8, and above the nation, while utilities were far cheaper at 78.7. Salt Lake City and Ogden metro prices were a little above the national level; St. George and Logan were below it.
How much of a Utah retiree's budget does Social Security cover?
For an average household, roughly 40% to 60%. Utah retired workers averaged about $2,168 a month in December 2025, about $26,019 a year. A household 65 or older spending the national average at Utah's price level would spend about $60,734 a year before income taxes. SSA estimates an average aged couple will receive $3,355 a month after the 3.6% 2027 COLA, about $40,260 a year. The rest comes from pensions, savings, work, or home equity.
What do Utah households 65 and older earn?
The median household income for Utah householders 65 and older was $70,712 in 2024, compared with $59,648 nationally, according to the Census Bureau's American Community Survey. Median income for 65+ households ranged from $59,796 in Iron County to $103,194 in Summit County among the larger counties in the 2020-2024 survey. Utah's poverty rate for people 65 and older was 7.7%, against 11.2% nationally.
How much should a Utah retiree budget for health care?
Households 65 and older spent an average of $7,799 on health care in 2024, about 12.7% of their spending, compared with 7.9% for all households. $5,107 of that was insurance premiums, which include Medicare Part B. The 2026 Part B premium alone is $202.90 a month per person, or $2,435 a year, and the 2027 amount had not been announced as of October 18, 2026.
Sources
- U.S. Bureau of Labor Statistics — Consumer Expenditures in 2024 (news release, December 19, 2025): bls.gov/news.release/cesan.nr0.htm
- U.S. Bureau of Labor Statistics — Consumer Expenditure Survey tables (age of reference person): bls.gov/cex/tables.htm; data series, e.g. CXUTOTALEXPLB0407M: data.bls.gov/timeseries/CXUTOTALEXPLB0407M
- U.S. Bureau of Labor Statistics — 2025 shutdown impact on the Consumer Expenditure Surveys (2025 release timing): bls.gov
- U.S. Bureau of Economic Analysis — Regional Price Parities by State and Metro Area, 2024: bea.gov
- U.S. Census Bureau — American Community Survey 2024 1-year, B19049, B19055, B19065, S1701, S0103 (Utah and U.S.): data.census.gov
- U.S. Census Bureau — American Community Survey 2020–2024 5-year, B19049 by Utah county: data.census.gov
- Social Security Administration — 2027 COLA Fact Sheet (3.6% COLA; average benefits January 2027): ssa.gov/news/en/cola/factsheets/2027.html
- Social Security Administration — Congressional Statistics, December 2025, Utah: ssa.gov/policy/docs/factsheets/cong_stats/2025/ut.html
- CMS — 2026 Medicare Parts A & B Premiums and Deductibles: cms.gov
- CMS — 2027 Medicare Advantage and Part D Rate Announcement (Part D out-of-pocket threshold $2,400 for 2027): cms.gov
About this article. Written by the Utah Retirement Income Data Desk and reviewed by Brian Penner, Retirement income & long-term care planner. Educational only — not financial, tax, or legal advice. Spending figures are national averages from the BLS Consumer Expenditure Survey for 2024; Utah and metro adjustments use BEA's 2024 Regional Price Parities and are our own arithmetic, not a survey of Utah retirees. Income figures are from the Census Bureau's American Community Survey and the Social Security Administration. Examples are illustrative and are not projections of any household's costs or results. Utah Retirement Income is a licensed independent insurance agency (NPN 16493717) and is not a government agency; we are not connected with or endorsed by the Social Security Administration, Medicare, the Centers for Medicare & Medicaid Services, the Bureau of Labor Statistics, Utah Retirement Systems, or any government program. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area; please contact Medicare.gov, 1-800-MEDICARE, or your State Health Insurance Assistance Program — in Utah, the Utah SHIP — to get information on all of your options. A $0-premium plan is not free; you still pay Part B premiums and cost-sharing. Annuity guarantees are subject to the claims-paying ability of the issuing company; there are no guaranteed investment returns and no promise of savings. If you call or text us, you consent to be contacted at the number you provide about your options; message and data rates may apply, and you can opt out at any time by replying STOP.