I Asked ChatGPT To Plan a $100,000/Year Retirement Budget — Here’s What It Said
Written by
Laura Beck
Edited by
Molly Sullivan
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Most retirement budgets assume you’re pinching pennies. But what if you saved well and want to actually enjoy retirement? I asked ChatGPT to map out a $100,000-per-year retirement budget for someone who wants comfort without being wasteful. The artificial intelligence’s breakdown was thorough and felt fairly realistic.
The chatbot designed a monthly spending plan, calculated how much you’d need saved and identified the best places to live on this income level. According to ChatGPT, here’s what a six-figure retirement actually looks like.
Who This Budget Works For
ChatGPT started by clarifying that $100,000 annually puts you well above average retirees. This budget supports quality healthcare, regular travel, a nice home in a desirable area and room for unexpected expenses. You’re not living extravagantly, but you’re comfortable.
The AI wrote that this lifestyle requires either strong savings or a combination of savings plus Social Security and possibly a pension.
The Monthly Breakdown: $8,333
One hundred thousand dollars per year equals about $8,333 monthly. ChatGPT broke this down into realistic categories.
Housing costs $2,500 to $3,500 per month. This covers either a nice rental in a high-demand city or a mortgage-free home where you only pay property taxes, insurance and HOA fees. The chatbot gave specific examples: Austin, Texas, runs about $3,200 monthly; Phoenix around $2,600; and Tampa, Florida around $2,400. San Diego pushes toward $3,500 or more.
Food and dining take $1,200 to $1,800 monthly. ChatGPT explained this includes high-quality groceries from stores like Whole Foods or Trader Joe’s plus eating out two to four times weekly. The budget also covers occasional hosting and holiday meals.
Transportation costs $600 to $900 per month. The AI assumed you might have a car payment along with insurance, gas and maintenance. If you live in a walkable city without a car, this drops to $200 to $300 monthly.
Healthcare and insurance run $800 to $1,500 depending on your age and state. ChatGPT broke this down as Medicare Parts B and D, supplemental Medigap or Advantage plans, dental and vision coverage, prescription medications and any specialist visits. The AI warned that people under 65 should budget toward the higher end.
Utilities cost $300 to $500 monthly for electricity, water, gas, trash, internet and streaming subscriptions.
Travel gets a significant chunk at $10,000 to $15,000 annually, which equals $850 to $1,250 monthly. ChatGPT explained this covers one to two major international trips plus domestic getaways, hotels and dining abroad. The AI wrote that travel makes a huge difference in retirement satisfaction.
Shopping, entertainment and hobbies take $500 to $1,000 per month. This includes gifts for family, concerts and events, hobby expenses like golf or photography and personal care like haircuts and massages.
Household miscellaneous costs $300 to $600 monthly for cleaning supplies, pet care, home maintenance and annual subscriptions.
ChatGPT also recommended saving $300 to $500 monthly into a dedicated emergency or home repair fund.
The total comes to roughly $8,300 monthly or $99,600 yearly, hitting the target almost exactly.
How Much Savings You Actually Need
The AI used the 4% safe withdrawal rule to calculate required savings. To withdraw $100,000 per year, you need $2.5 million saved.
But ChatGPT pointed out that most retirees receive Social Security. If you get $40,000 annually from Social Security, you only need to withdraw $60,000 from investments. That means you only need $1.5 million saved instead of $2.5 million.
The chatbot added that a pension reduces the required savings even more. The combination of Social Security, a modest pension and personal savings makes a six-figure retirement achievable for many professional workers.
The Tax Planning You Can’t Ignore
ChatGPT warned that a $100,000 retirement budget requires tax planning. The AI recommended Roth conversions to reduce future taxes, asset location strategies to minimize tax drag, planning for dividend taxes and avoiding Medicare IRMAA surcharges.
At this income level, poor tax planning costs thousands annually. The chatbot emphasized that strategic withdrawals from different account types can significantly reduce your tax bill.
The Three-Bucket Withdrawal Strategy
ChatGPT suggested dividing investments into three buckets. Bucket one holds two years of expenses in cash, around $200,000 to $250,000, for stability during market downturns. Bucket two contains five to seven years in bonds, around $300,000 to $500,000, for medium-term safety. Bucket three holds the remaining balance in stocks for long-term growth and inflation protection.
This strategy protects you from selling stocks during market crashes while maintaining growth potential.
Best Places To Live on $100,000
The AI identified U.S. cities where $100,000 provides excellent comfort: Raleigh and Charlotte in North Carolina, Tampa and St. Petersburg in Florida, Phoenix and Scottsdale in Arizona, Nashville suburbs and Reno in Nevada. Austin made the list as comfortable but not luxurious at this budget level.
ChatGPT also mentioned international options where $100,000 goes much further. In Portugal, Spain, Thailand, Mexico, Panama or Costa Rica, this budget provides a luxury lifestyle.
More From GOBankingRates
