I Asked ChatGPT How Much Retirement Will Cost in 25 Years — and It’s Way More Than $1 Million
Written by
Peter Burns
Edited by
Levi Leidy
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Planning for retirement is difficult, especially when you don’t know how much you’ll actually need. In the United States, the average retirement age is 62, and the average amount you’ll need to retire comfortably is $1.26 million, according to a Northwestern Mutual 2025 study. Keeping in mind that this age and amount will vary depending on each person’s situation, it’s hard for someone who is currently 37 to predict how much they’ll need to save to retire in 2050.
To get an idea of what the future of retirement might look like, I turned to ChatGPT and asked: How much will it cost to retire in 25 years? Its answer: $2.6 million or more.
Inflation
The first order of business for ChatGPT was to account for inflation. It assumed that the average annual rate of inflation over the next 25 years would remain steady at 3%. It said, “You’ll need around $2.65 million in 2050 to match the buying power of $1.26 million today, just to maintain today’s retirement lifestyle.”
Looking back, the rate of inflation from 2000 to 2024 was lower at 2.53%. If history were to repeat itself with this same average inflation rate, ChatGPT calculated that we would need $300,000 less, making it just a little bit easier to retire. But it also highlighted other factors to consider that could significantly increase overall costs.
Healthcare Costs
It’s no secret that healthcare costs increase as people age. That’s why ChatGPT highlighted this as a major factor that will affect your overall retirement costs. The AI chatbot said, “Healthcare costs consistently rise faster than inflation. An aging population and chronic conditions lead to more spending. Expect healthcare costs to double or triple by 2050.”
The amount someone pays for healthcare depends on a lot of factors. The median annual spending for someone who is low risk with no chronic conditions and doesn’t smoke is $3,400, while the median average for a medium-risk individual is $3,900. And someone who is high risk, such as a smoker with two or more chronic conditions and frequent doctor visits, pays a median amount of $7,500 annually, according to Vanguard data.
By ChatGPT’s calculation, a medium-risk individual should expect to pay $7,800 to $11,700 each year in healthcare costs in 25 years.
Housing
Housing is another major what-if that ChatGPT took into consideration, saying, “If your home is paid off, costs are lower (just property taxes, insurance and maintenance). If renting, housing costs may continue to rise with inflation or market demand.”
As the AI chatbot says, housing costs are very different depending on whether you pay a mortgage, completely own your home or rent. Between 2000 and 2025, rent costs rose across the U.S. by 134.72%, or 3.47% per year. If you rented your home for $1,000 a month in 2000, you’ll now pay $2,347. With the average rent in the U.S. being $1,637 per month, if the rate of change remains consistent, the monthly cost will be $3,842 in 2050.
Longevity
Longevity is another factor in how you’ll need to plan to stretch your savings. ChatGPT notes, “The longer you live, the more you need. Average life expectancy is increasing. Planning for 95-100 is becoming standard.”
The average life expectancy in the U.S. is 75.8 years for males and 81.1 years for females, for an overall average of 78.4. However, most retirees don’t base their savings on these numbers. Instead, it’s normal to strategize how you’ll use your savings over 25 to 30 years, which matches that time frame.
Social Security
The hot topic of Social Security also came up, with ChatGPT saying, “In 2024, the average monthly benefit is [around] $1,900 ($22,800 per year). In 25 years, this could be $40,000-$50,000 per year, depending on adjustments. You’ll likely still need personal savings to supplement it.”
The Social Security website reports that the average monthly benefit for 2025 is $1,976, amounting to $23,7112 annually. While ChatGPT seems confident that Social Security will increase, many wonder if it will still exist in 25 years. Currently, policies are in place for eligible candidates to receive their full Social Security benefits until the year 2035.
However, there isn’t any guarantee that you’ll be able to receive full or even partial Social Security payments in 2050, making it difficult to plan for retirement.
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