4 Financial Experts Share Their Retirement Budget Examples
Written by
David Nadelle
Edited by
Jenna Klaverweiden
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Retirement budgeting becomes more expensive with each successive generation as Americans continue to live longer and need to fund more years in retirement. Inflation concerns and unexpected health expenses can add undue stress, and having a budget is essential in trying to navigate this significant phase of life.
Here’s what four financial experts have to say on the subject of budgeting for retirement.
Also see what a comfortable monthly budget is for retirees in 2026.
Use a Budgeting Tool
Retirement savings are finite, so a budgeting tool should always be considered. Christina Lynn, a behavioral financial counselor at Mariner Wealth Advisors, recommended sticking to the basics when it comes to planning for retirement.
“I’m a fan of the 50/30/20 rule for budgeting,” Lynn said. “It suggests allocating 50% of your take-home pay for needs (e.g., housing, food, transportation), 30% for wants (e.g., eating out, travel, fun), and 20% for savings (e.g., 401(k), emergency fund) and debt repayment (e.g., student loans).”
To stay on budget, Lynn recommended automated savings and bucket accounts to avoid “the temptation of spending what should be saved.”
Factor In Fluidity
It’s good to have guidelines, but fluidity is essential when looking at retirement spending. “Retirement isn’t one long budget: it’s a series of financial seasons,” said Melissa Murphy Pavone, founder and guiding light at Mindful Financial Partners.
“The truth is that retirement spending isn’t flat,” she said. “There are seasons: the ‘go-go’ years where travel and hobbies peak, the ‘slow-go’ years where spending stabilizes, and the ‘no-go’ years when healthcare becomes a bigger factor.”
She explained that while some years will cost more, others will cost less. “The key is not to force a retiree into rigid categories but to help them understand their baseline needs and their discretionary wants,” she said.
Do a Thorough Financial Evaluation
Before focusing on your spending areas, a thorough financial evaluation is required, and that starts with “outlining all sources of income and expenses,” said Jared Hubbard, former Fidelity Investments director and current fintech product manager at Plynk.
“From there, you might categorize expenses as essential and nonessential to identify areas where you can cut back,” Hubbard said, before offering his two cents on something many people neglect in retirement: investing.
“Consider leaving room in your budget for investing and try to make it a priority. When you do spend, rounding up your everyday purchases to the nearest dollar and putting the change into an investment account could be a subtle and efficient way for you to save and try to build your money,” he said.
Don’t Forget About Healthcare
While many focus on retirement planning to fund holidays and money for children, the truth is healthcare needs will probably be the biggest expense a retiree will have in their twilight years. Whitney Stidom, vice president of consumer enablement at eHealth, suggested that “retirees need to bucket $200,000 for medical costs in their golden years.”
“Healthcare is one of the biggest budget busters in retirement even after people becoming eligible for Medicare,” Stidom said. “When comparing Medicare coverage options, people should factor in prescriptions, preferred doctors, and any chronic conditions that may need ongoing care for — smart choices that can potentially lead to over $1,800 in savings per year.”
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