Retirement Spending Calculator
Retirement Spending
Project your total retirement spending needs by category including housing, healthcare, food, transportation, and leisure, adjusted for inflation over your retirement years.
Formula
Monthly Total = Housing + Healthcare + Food + Transport + Leisure + Other; Annual Total = Monthly Total x 12; Year N Spending = Annual Total x (1 + Inflation)^N; Lifetime Total = Sum of all years
Frequently Asked Questions
How much will I spend in retirement?
Most retirees spend 70 to 80 percent of their pre-retirement income, but this varies widely. Housing and healthcare typically represent the largest categories. Spending often follows a smile pattern: higher early on, declining in middle years, then rising again with increased healthcare needs.
Which expenses increase most in retirement?
Healthcare costs tend to increase the most, often rising 5 to 7 percent annually. Property taxes, insurance premiums, and long-term care costs also tend to grow faster than general inflation.
Should I plan for the same spending throughout retirement?
No. Research suggests retirees tend to spend more in the early active years on travel and hobbies, less in the middle quiet years, and more again in later years on healthcare and assistance. A dynamic spending plan is more realistic than assuming flat expenses.
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