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By the time they reach their early 80s, many retirees anticipate a decrease in their budgets as travel diminishes and their overall needs decrease. However, for wealthier retirees, the reality is distinctly different. Increases in healthcare costs, a higher likelihood of requiring long-term care, and the desire to maintain a comfortable lifestyle often keep expenses high.
According to the 2024 Consumer Expenditure Survey, households led by individuals aged 75 and older spend approximately $53,031 annually, translating to about $4,400 per month. In contrast, Linda Jensen, a retirement planning expert and founder of Heart Financial Group, states that affluent retirees can spend double that or more, with monthly budgets ranging from $8,000 to $10,000, depending on factors such as location, health, and lifestyle choices.
“Affluent retirees often believe they won’t deplete their funds, but without meticulous planning, they risk seeing their assets diminish,” cautioned Jensen.
Long-Term Care Costs
Most retirees will eventually require long-term care. The Administration for Community Living reports that 70% of retirees will need such assistance at some point. The financial burden for long-term care continues to rise; the 2024 Genworth Cost of Care Survey indicates that in-home care costs can reach nearly $78,000 annually. However, Jensen advises that this figure is likely underestimated.
“Assisted living facilities can cost around $10,000 each month. If a private room is required, expenses can soar,” she added. For retirees battling Alzheimer’s or dementia, costs can escalate further. A 2025 Alzheimer’s Association report predicts lifetime out-of-pocket costs for families caring for a member with dementia to be close to $247,000 annually.
Many retirees presume that Medicare will cover their long-term care needs, but Jensen emphasizes that “it doesn’t,” adding that wealthier households typically pay for more comprehensive coverage.
Housing and Tax Considerations
While affluent retirees may not carry a mortgage, they often encounter elevated property taxes and greater maintenance costs. As mobility declines with age, spending on assistance increases, driving up monthly expenses. Jensen noted, “I have clients in Washington State spending $15,000 a month just to maintain their homes.”
The loss of a spouse, a common circumstance for retirees in their 80s, creates additional fiscal challenges. Newly single retirees may face increased taxes along with decreased income. “Widows and widowers often find their standard deduction cut by half and may lose their partner’s pension or Social Security benefits,” Jensen explained. To alleviate some of these financial pressures, she suggests strategic timing of withdrawals and transitioning to a Roth account to prevent bracket creep.
The Bottom Line
For affluent retirees, the living expenses at age 83 can comfortably exceed $8,000-$10,000 monthly, particularly for those needing intensive in-home or specialized memory care. Although they are less likely to run out of money, neglecting careful spending plans can erode the estates they wish to leave behind.
“The majority of my clients aim to thrive, not just survive—they want to leave a legacy,” Jensen stated. “Achieving this requires thoughtful planning. Even when wealth is abundant, having a comprehensive retirement strategy that addresses income, healthcare, taxes, and estate planning is essential. Otherwise, assets can diminish more rapidly than anticipated.”
