I Asked ChatGPT To Plan a $150,000/Year Retirement Budget — Here’s What It Came Up With
Written by
Laura Beck
Edited by
Molly Sullivan
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Most retirement calculators tell you how much to save but skip the part about what you’ll actually spend that money on. I asked ChatGPT to break down a realistic $150,000 per year retirement budget for a couple who owns their home outright and wants to live comfortably without being reckless.
Here’s what it came back with.
Housing Eats $30,000 Even Without a Mortgage
ChatGPT allocated $2,500 per month to housing, which sounds high until you realize a paid-off house still costs real money. Property taxes and homeowners insurance alone run about $1,000 monthly in many parts of the country.
Add $750 for HOA fees or a maintenance fund for repairs, $500 for utilities like electricity and water, and $250 for internet and streaming services. Suddenly $30,000 per year makes sense even when you’re not making mortgage payments.
If you’re renting instead of owning, this budget still works in most metro areas outside high-price ones like New York and San Francisco.
Food and Dining Get $18,000 for Flexibility
ChatGPT budgeted $1,500 per month for food, split between $750 for groceries, $600 for dining out and takeout, and $150 for wine, specialty foods and coffee.
That’s enough to eat well at home and go to restaurants regularly without stressing about the bill. You’re not eating ramen or limiting yourself to two dinners out per month. This is comfortable retirement eating.
Transportation Costs $12,000 Assuming You Own Your Cars
The budget assumes you own one or two paid-off vehicles and spend $1,000 monthly on transportation. That breaks down to $250 each for car insurance, fuel, maintenance and registration, and ride-share or public transit.
If you’re still making car payments in retirement, you’ll need to adjust this category up. But most retirees have paid off their vehicles by the time they stop working.
Healthcare Gets $20,000 Because It’s Always More Than You Think
ChatGPT allocated $1,667 per month for healthcare, which it explained is one of the most underestimated retirement costs. This covers Medicare Part B and D premiums, a Medigap or Medicare Advantage plan, dental and vision care, and out-of-pocket medical expenses that Medicare doesn’t cover.
Twenty thousand dollars sounds like a lot until you actually retire and start dealing with healthcare costs. The budget is intentionally conservative here because medical expenses only go up as you age.
Travel Gets the Biggest Chunk at $25,000
The budget puts $2,083 per month toward travel, which works out to two major international trips or three to four domestic trips per year plus extended stays. This includes flights, hotels, cruises and activities.
ChatGPT called this “active retirement” travel, not budget travel. You’re not backpacking through hostels or eating street food to save money. You’re staying in decent hotels and really enjoying yourself.
Entertainment and Lifestyle Cost $15,000
ChatGPT allocated $1,250 monthly for concerts, theater, gym memberships, golf, hobbies, subscriptions and gifts. This category covers the things that make retirement fun instead of just sitting at home watching TV.
If you play expensive hobbies like golf at a country club, you might need more. If you prefer hiking and reading, you might need less. But $15,000 gives you plenty of room to stay active and engaged.
Personal Expenses Run $10,000
The budget includes $833 per month for clothing, haircuts, grooming, tech upgrades and small household purchases. This is the miscellaneous category that always ends up costing more than you expect.
Taxes Take $20,000 Even in Retirement
ChatGPT budgeted $20,000 annually for taxes, which works out to about a 13% effective rate. This assumes a mix of Social Security income, retirement account withdrawals and possibly some Roth distributions.
The budget explained that with a smart withdrawal strategy, many retirees keep their effective tax rate well below what they paid during their working years. Not all retirement income is taxable, which helps.
What This Actually Buys You
A $150,000 retirement budget gives you no financial stress, plenty of travel, high-quality healthcare, regular restaurant meals and room for spontaneity and generosity. ChatGPT described it as “wine country and Europe” retirement, not “private jets” retirement.
The reality is most retirees won’t spend $150,000 per year. But if you saved aggressively during your working years and want to really enjoy retirement instead of pinching pennies, this budget shows where that money goes.
The numbers assume you’re mortgage-free, reasonably healthy and living in a mid-cost area. Adjust up if you’re in California or New York. Adjust down if you’re in the Midwest or South.
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