Clothing
If you’re expecting to return to the office, then it’s only natural to worry about your wardrobe. After all, you need to look as good as possible. Well, after you retire, you’ll say goodbye to pressed shirts and high heels, and you will be able to give your wallet a well-deserved break, at least in this department.
In fact, the average retired household spends around $1,070 a year only on clothing items, while the average working household (at least in pre-pandemic times) spends somewhere around $1,866 a year.
You also have to factor in all the funds you will manage to save on dry cleaning. However, here’s a thought: even if household spending on apparel drastically decreases in retirement, you might notice spikes in spending caused by various casual wardrobe updates. Make sure you don’t exaggerate with those golf pants!