Planning for retirement might seem daunting. It’s hard to think about how much you’re going to spend in your later years. You sometimes just want someone to tell you how much to save and go from there.
GOBankingRates looked into how much upper-class retirees spend in a month. Even if you’re not in the American upper class, it might be helpful to know how much retirees in that class spend. It might help you budget accordingly.
How Much Do Upper Class Retirees Make at Age 68?
To figure out how much upper-class retirees made, it was important to first look at how much the average retiree earns.
According to Annuity.org, the average annual income for those 65 and older in the United States is $75,254. Those between 65 and 74 had a slightly higher income at an average of $84,975. It’s safe to assume that an upper-middle-class retiree would make upwards of $85,000. For the upper class, $169,800 is the minimum salary required, according to previous GOBankingRates research.
Another way to determine upper class is by net worth. Net worth is determined by subtracting debts from assets. According to a different GOBankingRates article, a net worth of $714,000 or more is considered upper class in the United States.
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How Much Do Upper Class Retirees Spend at Age 68?
GOBankingRates previously reported that people between 61 and 78 spend $5,850.58 per month on average. Taking this into account, a retiree can be considered upper middle class if they’re spending $6,000 a month or more.
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 someone at 68 would spend somewhere between $9,068.40 and $9,653.46.
What Do Upper Class Retirees Spend Money On at Age 68?
One top cost for retirees is housing. The exact amount largely depends on your living situation, but Vision Retirement reported that retirees spent $21,445 a year on housing on average, so 68-year-olds can figure on saving about $1,787 a month for any housing costs.
Healthcare is another large expense for retirees, and for 68-year-olds, they can expect to spend thousands a year on their health. According to Fidelity, those between 65 and 74 can expect to pay $7,942 on healthcare annually. Fidelity reported that it’s a good idea to set aside at least 15% of income to healthcare as a retiree.
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This article originally appeared on GOBankingRates.com: How Much the Average Upper-Class Retiree Spends Monthly at Age 68
