I’m Upper Class and Retired: Here’s Where My Money Really Goes Each Month
Written by
Laura Beck
Edited by
Jenna Klaverweiden
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Joyce K. spent 35 years building a successful law practice before retiring at 62 with $3.2 million in investments and a paid-off home. Now 67, she’s living comfortably on about $18,000 per month, but her spending might surprise you.
Here’s exactly where Joyce’s money goes each month and what she’s learned about upper-class retirement spending.
Housing: $4,200 Monthly
Even with a paid-off $850,000 home, housing remains Joyce’s biggest expense category.
“I thought eliminating the mortgage would slash my housing costs,” she said. “It did to a certain extent, but there’s always more to pay.”
Property taxes run $2,100 monthly in her upscale suburb. Home maintenance averages $800 per month when she factors in annual HVAC servicing, utilities, landscaping, house cleaning twice monthly and regular repairs.
“I love my house, but it’s not cheap,” Joyce said. “My husband recently informed me that I spend more on lawn care alone than many people spend on rent.”
Healthcare: $2,800 Monthly
Healthcare represents Joyce’s second-largest expense, despite having good Medicare supplemental insurance.
“I budget $1,500 monthly for out-of-pocket medical costs,” she explained. “That includes physical therapy, massage therapy, premium supplements and procedures that aren’t fully covered.”
Joyce sees a cardiologist, dermatologist and ophthalmologist regularly for preventive care. She also pays for a personal trainer twice weekly and a nutritionist quarterly.
Long-term care insurance costs hundreds monthly, which she considers a must. “A good friend of mine was devastated by these types of costs,” she said. “I watched and I learned. And I changed!”
Travel and Entertainment: $2,500 Monthly
This category varies significantly throughout the year, but Joyce budgets $2,500 monthly to cover her lifestyle preferences.
“We take three major trips annually plus several weekend getaways,” she said. “Good hotels and first-class flights aren’t cheap, but comfort matters more at my age. I can’t squeeze these old bones into coach anymore, sorry!”
Annual travel spending includes a European river cruise ($8,000), a winter trip to Arizona ($4,000) and various domestic trips. She also budgets for theater subscriptions, wine country visits and dining out four to five times weekly.
“Restaurant meals are a big expense when you’re eating out frequently,” Joyce noted. “We easily spend $300 weekly on dining, plus wine and entertainment.”
Transportation: $1,400 Monthly
Joyce drives a 3-year-old Lexus, and her husband has a BMW. Combined car payments total $850 monthly.
She budgets for insurance for both vehicles, plus gas, maintenance and registration fees.
Taxes: $2,100 Monthly
Even in retirement, taxes consume a significant portion of Joyce’s budget. She pays quarterly estimated taxes on investment withdrawals, Social Security benefits and rental income from a small property.
Joyce works with a CPA to figure out her tax strategy, including Roth conversions and charitable giving for deductions.
Professional Services: $900 Monthly
Joyce pays a financial advisor 1% annually on managed assets, and her CPA charges monthly for ongoing tax planning and preparation.
“I used to do my own taxes and clean my own house,” she said. “Now I’d rather pay professionals and spend my time on things I enjoy.”
Insurance (Non-Health): $650 Monthly
Beyond health insurance, Joyce carries substantial coverage for asset protection. Umbrella liability insurance plus life insurance premiums (for policies that will benefit her adult children) add up.
Personal Care and Wellness: $800 Monthly
Joyce likes to take care of herself. Hair and nail appointments cost $300 monthly at an upscale salon. Skincare treatments and products add $200 monthly.
“I probably spend more on personal care than I did when I was working,” Joyce said. “But I have more time for these things now, and I love them.”
A gym membership, yoga classes and wellness treatments round out this category at $300 monthly.
Charitable Giving: $1,200 Monthly
Joyce donates about $14,400 annually to various causes, which provides tax benefits while supporting organizations she cares about.
“I have so many places I love donating to,” she explained. “Ever since I saw that Sarah McLachlan ASPCA commercial, I’ve been making my most major donation there.”
Miscellaneous and Emergency Fund: $1,500 Monthly
Joyce keeps $1,500 monthly in a flexible category for unexpected expenses and discretionary purchases.
“There’s always something,” she said. “For instance, I had to help my son pay rent this month, and voila! Fifteen-hundred dollars gone!”
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