Calculate approximately how much money an older (age 65-74) household with an annual income of $39,000 spends on health care each year. UseExhibit 14-3.

Exhibit 14-3 AGE 65-74 How "Average" Older AGE 75 & OLDER (65-74 and 75+) Average $ Amount Percent Average $ Amount Percent Households Spend Pretax Annual Income $52,366 100 $35,467 100 Their Money Annual Expenditures $48,855 100 $36,673 100 Retired families spend a greater share of their income Housing $15,838 32.4 $13,375 36.5 for food, housing, and medical Food care than nonretired families. $ 6,284 12.0 $ 4,349 11.9 Clothing $ 1,417 2.9 $ 683 1.9 Transportation $ 8,338 17.1 $ 5,091 13.9 Health Care $ 5,456 12.2 $ 5,708 15.6 Entertainment $ 2,988 6.1 $ 1,626 4.4 Pensions and Social Security $ 2,788 5.7 $ 800 2.2 Other* $ 6,074 11.6 $ 5,041 13.7 *Includes cash distribution, alcohol, tobacco, personal care products and services, reading, education, life and personal insurance, and miscellaneous expenses. Source: Ann C. Foster, "A Closer Look at Spending Patterns of Older Americans," Beyond the Numbers: Prices and Spending, vol. 5, no. 4 (U.S. Bureau of Labor Statistics, March 2016), https://www.bls.gov/opub/btn/volume5/spending- patterns-of-older-americans.htm, accessed May 4, 2017