Home Breadcrumb caret Industry News Breadcrumb caret Industry How much do retirees spend? 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. By Staff | June 25, 2015 | Last updated on June 25, 2015 2 min read 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 Read: 5 key risks to retirement income $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%) Read: Help clients nearing retirement Some early retirees would be broke within a year 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 Staff The staff of Advisor.ca have been covering news for financial advisors since 1998. Save Stroke 1 Print Group 8 Share LI logo