I Asked ChatGPT How Much the Average Upper-Middle-Class Retiree Spends Monthly at Age 85: Here’s What It Said
Written by
Daisy Carrington
Edited by
Zuri Anderson
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By 2026, the oldest baby boomers will turn 80, signaling an era of explosive population growth for America’s 80-plus demographic. According to The Wall Street Journal, by 2030, there will be 4 million more Americans over 80 years old than there are today.Â
Likely to signal a strain on resources for older adults, the octogenarians in a higher income bracket — or who have a good retirement nest egg — may be in the best position to retire comfortably. But what can an upper-middle-class octogenarian expect to spend? To answer that question, GOBankingRates turned to ChatGPT. Here’s what it said.
Spending Trends by Age
Comparing spending data from the Bureau of Labor Statistics’ Consumer Expenditure Survey between retirees aged 65 to 74 and those 75 and over, ChatGPT calculated retirees’ spending drops 20% to 25% past the age of 65.
While ChatGPT cited data from 2022, the 2023 survey — the 2024 survey has yet to be released — has similar findings. It accounts for the fact that retirees spend less on entertainment and transportation as the reason for this drop, noting that housing, healthcare and basic needs account for the majority of expenses for those aged 85-plus.
It put spending levels for all retirees over 75 at $48,872 per year — though the 2023 Consumer Expenditure Survey puts this figure at $53,000.Â
How the Upper Middle Class Lives
While the Bureau of Labor Statistics doesn’t segment its estimates by income brackets, ChatGPT estimates upper-middle-class retirees are likely to spend 20% to 50% more than the average retiree, putting the likely monthly expenditures for this group at between $4,500 and $6,000 per month.
While ChatGPT doesn’t reveal how it came to that calculation, it figures healthcare, home maintenance and caregiving will likely account for most of that spike in spending.Â
The breadth of that range may have something to do with the wide range of housing costs an upper-middle-class retiree in their 80s may be on the hook for. According to a 2023 report from Harvard’s Joint Center for Housing Studies, the percentage of homeowners age 80 and over who’ve yet to pay off their mortgage has spiked from 3% to 31%, meaning even older retirees in the upper middle class still have substantial housing costs.
Caregiving is increasingly an expenditure that only the wealthiest can afford, according to the 2024 Genworth Cost of Care Survey, which estimates in-home care at nearly $78,00 per year.
The Final Tally
ChatGPT estimates that those aiming for an upper-middle-class retirement lifestyle should plan to spend well over $60,000 annually by the time they reach 85 — a figure that could climb higher with inflation or unexpected health costs.
The takeaway? Even for retirees who’ve built up a strong nest egg, living comfortably well into their 80s requires careful preparation and the flexibility to adapt as needs shift.
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