Retirees Spend Hundreds on Pets Annually

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Households headed by someone 65 or older spend an average of $752 per year on their pets, more than they spend on reading, tobacco, and clothing combined. The costs of pet care, including food, vet visits, and services like boarding, are rising faster than the overall inflation rate and Social Security's cost-of-living adjustments, creating financial challenges for retirees on fixed incomes.

Why it matters

As the costs of pet ownership continue to climb, retirees may be forced to make difficult choices about their household budgets. This trend highlights the financial pressures facing older Americans, who often have limited incomes but feel strong emotional attachments to their pets.

The details

According to the Bureau of Labor Statistics, U.S. households headed by someone 65 or older spend more on their pets than they do on reading, tobacco, and clothing combined. Among Boomer pet owners, the figure jumps to $1,113 per year. Pet care prices, including food, grooming, and veterinary services, are rising faster than the overall inflation rate and Social Security's cost-of-living adjustments, which were 2.8% in 2022. Since 2021, pet prices have climbed 27%, about 7 percentage points faster than overall consumer costs.

• In February 2023, pet costs rose 3.3% year-over-year, outpacing both the overall inflation rate (2.4%) and the 2.8% cost-of-living bump retirees received from Social Security.
• Since 2021, pet prices have climbed 27%, about 7 percentage points faster than overall consumer costs.

What’s next

As pet care costs continue to rise, retirees may need to explore options like pet insurance or seek out more affordable veterinary care to manage their budgets. Policymakers may also need to consider adjusting Social Security cost-of-living increases to better reflect the rising expenses faced by older Americans with pets.