How much will you spend in retirement? Estimate your monthly and annual expenses across 8 categories — housing, food, transportation, healthcare, utilities, entertainment, travel, and miscellaneous — and compare them to your projected retirement income to see if you are on track for a secure retirement.
Adjust the sliders to estimate your expected monthly expenses. Default values reflect national averages for a typical retired couple in 2025-2026.
Enter your expected monthly income sources. The calculator compares total annual income to total annual expenses.
Retirement expenses aren't static — they change over time. These scenarios show how specific factors can affect your retirement budget.
Healthcare costs historically rise faster than general inflation. If your current health insurance premiums, co-pays, and out-of-pocket medical expenses are $600/month, a 5% annual inflation rate means those costs increase significantly over a 20-year retirement. After 5 years, your healthcare costs would be approximately $766/month — a 28% increase. After 10 years, $977/month. After 20 years, $1,592/month. This scenario is especially important for retirees aged 55-65 who are not yet eligible for Medicare and may face even higher premiums on the individual market.
Planning tip: Consider a Health Savings Account (HSA) if you are still working, or set aside a dedicated healthcare reserve in your retirement portfolio. Many financial advisors recommend budgeting 5-7% of your total retirement savings for healthcare costs alone.
Many retirees spend significantly more on travel in the first 5-10 years of retirement — often called the "go-go years" — when health and energy levels are at their peak. If your baseline travel budget is $300/month, you might spend $600-$800/month during early retirement, then reduce to $150-$200/month in later years. This front-loading of travel expenses means your total spending in the first decade could be $7,000-$9,600/year instead of the budgeted $3,600/year.
Planning tip: Build a separate "early retirement travel fund" rather than inflating your permanent monthly budget. A dedicated travel bucket of $50,000-$75,000 can fund 5-8 years of active travel without distorting your long-term expense projections.
Many retirees downsize from a family home to a smaller property, condo, or retirement community, reducing housing costs by 30-50%. If your current housing budget is $1,500/month, downsizing could bring that to $750-$1,050/month. Downsizing also frees up home equity that can be added to your retirement income portfolio.
Planning tip: Factor in the one-time costs of selling and moving (typically 6-10% of the home's value). The net proceeds from downsizing can extend your retirement savings by 3-5 years in many cases.
Retirement spending patterns change as you age. The table below shows how average monthly expenses vary depending on when you retire, with costs adjusted for lifestyle changes across different retirement phases.
| Retirement Age | Housing | Food | Transport | Healthcare | Utilities | Entertainment | Travel | Misc | Total/Month | Total/Year |
|---|---|---|---|---|---|---|---|---|---|---|
| Age 60 | $1,600 | $850 | $500 | $700 | $300 | $250 | $500 | $250 | $4,950 | $59,400 |
| Age 65 | $1,500 | $800 | $400 | $600 | $300 | $200 | $300 | $200 | $4,300 | $51,600 |
| Age 70 | $1,350 | $750 | $300 | $750 | $350 | $150 | $150 | $200 | $4,000 | $48,000 |
Note: These figures are estimates based on national averages. Age 60 assumes more travel and higher housing costs. Age 70 shows higher healthcare costs but lower travel and transportation.
According to the Bureau of Labor Statistics Consumer Expenditure Survey (2024-2025 data), households aged 65 and older spend an average of $4,200-$5,300 per month, depending on region and household size. The largest categories are housing (30-35%), healthcare (12-15%), and food (10-12%). Fidelity's 2025 Retiree Health Care Cost Estimate projects that an average 65-year-old couple retiring in 2025 will need $315,000 to cover healthcare expenses throughout retirement — up 5% from the previous year due to medical inflation.
Housing = Mortgage/rent, property taxes, insurance, HOA fees, maintenance
Food = Groceries, dining out, meal delivery
Transportation = Car payment, gas, insurance, maintenance, public transit
Healthcare = Insurance premiums, co-pays, prescriptions, dental, vision
Utilities = Electricity, gas, water, trash, internet, phone
Entertainment = Streaming services, hobbies, subscriptions, events
Travel = Vacations, road trips, visits to family
Miscellaneous = Clothing, gifts, personal care, pet expenses
Annual Retirement Income = (Social Security + Pension + Withdrawals + Other Income) × 12
A 65-year-old couple estimates their monthly expenses: Housing $1,500 + Food $800 + Transportation $400 + Healthcare $600 + Utilities $300 + Entertainment $200 + Travel $300 + Miscellaneous $200 = $4,300/month.
Annual expenses: $4,300 × 12 = $51,600/year. With $60,000/year in retirement income ($5,000/month × 12), the income gap is: $60,000 - $51,600 = $8,400/year surplus.
Use the sliders to estimate your expected monthly spending in each of the 8 categories. Start with the default values, which reflect national averages for a retired couple, and adjust them based on your own situation. If you plan to downsize your home, reduce the housing slider. If you expect high healthcare costs, increase the healthcare slider.
Fill in your expected monthly income sources: Social Security benefits, pension income, systematic withdrawals from retirement accounts, and any other income such as rental income, part-time work, or annuities. The calculator multiplies your total monthly income by 12 to get your annual income.
After calculating, review your total monthly and annual expenses, annual income, and the income gap. A positive gap (surplus) means your income covers your expenses. A negative gap (shortfall) means you need to reduce expenses, increase income, or adjust your retirement plans. The bar chart shows which categories consume the largest share of your budget.
Use the Scenarios tab to see how healthcare inflation, front-loaded travel expenses, or housing downsizing could change your retirement budget. Compare the age-based spending table to see how retiring at 60 vs. 65 vs. 70 affects your expenses. Adjust your inputs and recalculate until you find a plan that works for your goals.
Remember: This calculator provides estimates based on the information you enter. Retirement expenses are affected by inflation, healthcare costs, lifestyle changes, and unexpected events. Consult a qualified financial advisor for personalized advice.
Retirement spending is one of the most important — and most misunderstood — variables in retirement planning. The rule of thumb that you will need 70-80% of your pre-retirement income is a starting point, but actual spending varies widely based on your health, housing situation, lifestyle, and where you live. According to the Bureau of Labor Statistics Consumer Expenditure Survey, households aged 65 and older spend an average of $4,500-$5,500 per month depending on region and household composition. The largest expense categories are housing (30-35%), healthcare (12-15%), and food (10-12%).
Many retirees find that their spending follows a U-shaped pattern: higher in the first 5-10 years of retirement (travel, hobbies, home renovations), lower in the middle years (settling into a routine), and rising again in later years (increased healthcare costs). Understanding where your money goes in each phase of retirement is critical to building a sustainable withdrawal strategy.
| Expense Category | Typical Range (Monthly) | % of Total Budget | Notes |
|---|---|---|---|
| Housing | $1,000 - $2,000 | 30-35% | Mortgage/rent, taxes, insurance, maintenance |
| Healthcare | $400 - $1,000 | 12-15% | Medicare premiums, co-pays, prescriptions |
| Food | $500 - $1,000 | 10-12% | Groceries, dining out, meal delivery |
| Transportation | $300 - $600 | 8-10% | Car payment, gas, insurance, maintenance |
| Utilities | $200 - $500 | 5-7% | Electricity, gas, water, internet, phone |
| Entertainment | $100 - $400 | 3-5% | Hobbies, subscriptions, events |
| Travel | $100 - $600 | 3-8% | Vacations, road trips, family visits |
| Miscellaneous | $100 - $400 | 3-5% | Clothing, gifts, personal care, pets |
Housing decisions. Housing is the single largest retirement expense for most people. Retirees who own their home free and clear still face property taxes ($2,000-$6,000/year), insurance ($800-$2,000/year), and maintenance (1-2% of home value annually). Downsizing, moving to a lower-cost area, or relocating to a retirement community can reduce housing costs by 30-50%.
Healthcare costs. Healthcare is the most unpredictable retirement expense. Fidelity's 2025 Retiree Health Care Cost Estimate projects that a 65-year-old couple retiring in 2025 will need approximately $315,000 for healthcare throughout retirement. This includes Medicare Part B and D premiums, Medigap or Medicare Advantage premiums, co-pays, deductibles, and out-of-pocket costs for prescription drugs. It does not include long-term care, which can add $50,000-$100,000+ per year.
Inflation adjustments. A 3% inflation rate doubles the cost of living every 24 years. Over a 30-year retirement, inflation erodes purchasing power significantly. A $4,000/month budget in today's dollars will need to be approximately $9,700/month in 30 years at 3% inflation. This is why retirement planners recommend including inflation-adjusted withdrawal strategies and maintaining at least some exposure to growth assets throughout retirement.
Lifestyle changes. Spending patterns shift predictably across retirement phases. The "go-go years" (ages 60-75) typically feature higher spending on travel, hobbies, and home improvements. The "slow-go years" (75-85) see reduced travel but potentially higher healthcare costs. The "no-go years" (85+) involve reduced overall spending but significantly higher medical and long-term care expenses. A flexible budget that accounts for these phases is more realistic than a flat annual spending target.
⚠️ General Estimate Only: This retirement expense calculator provides estimates based on the values you enter and national average data for 2025-2026. Results are estimates, not financial advice. Actual retirement expenses vary by location, health status, lifestyle choices, inflation, and market conditions. The information provided is for educational purposes and should not be used as a substitute for professional financial planning advice.
When planning your retirement budget, consider these additional factors: long-term care costs (not covered by Medicare), potential tax changes, sequence-of-returns risk in the early years of retirement, and the impact of required minimum distributions (RMDs) from tax-deferred accounts after age 73. A comprehensive retirement plan addresses all of these elements and is reviewed annually. Use this calculator as a starting point, then work with a qualified financial planner to build a detailed retirement income strategy that accounts for your specific goals, health, and risk tolerance.