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Planning for retirement can seem daunting. It’s hard to imagine how much you’re going to spend in your later years. Sometimes you just want someone to tell you how much to save and go from there.
GOBankingRates looked at how much upper-class retirees spend a month. Even if you’re not in the American upper class, it may be useful to know how much retirees in that class spend. This can help you budget accordingly.
How much do upper class retirees make at age 68?
To find out how much the upper class retirees earned, it was important to first look at how much the average retiree earned.
according to Annuity.orgThe median annual income for people age 65 and older in the United States is $75,254. The median income for those between 65 and 74 was slightly more at $84,975. It’s safe to assume that an upper-middle-class retiree will earn more than $85,000. For the upper class, $169,800 is the required minimum salary, according to previous GOBankingRates research.
Another way to determine upper class is net worth. Net worth is determined by subtracting debts from assets. According to a separate GOBankingRates article, a net worth of $714,000 or more is considered upper class in the United States.
How much do upper class retirees spend at age 68?
GOBankingRates previously reported that people between the ages of 61 and 78 spend an average of $5,850.58 per month. With this in mind, a retiree can be considered upper middle class if they are spending $6,000 or more per month.
For upper-class households, GOBankingRates found that upper-class households consistently spend about 55% to 65% more than the average American. Based on the $5,850.58 figure, this would mean that a 68-year-old would spend between $9,068.40 and $9,653.46.
What do upper class retirees spend money on at age 68?
There is a top cost housing for retirees. The exact amount depends largely on your living situation, but vision retirement The report notes that retirees spend an average of $21,445 per year on housing, so a 68-year-old could save about $1,787 per month for any housing costs.
Health care is another big expense for retirees, and for 68-year-olds, they can expect to spend thousands per year on their health. according to LoyaltyPeople ages 65 to 74 can expect to pay $7,942 a year on health care. Fidelity reports that as a retiree it’s a good idea to set aside at least 15% of your income for health care.