How to Use the Retired Couple Living Cost Calculator
Spending habits shift once you retire. Commuting and work-related costs disappear, but healthcare spending tends to climb, and having more free time often means spending more on travel and hobbies. This calculator separates essential costs — housing, food, healthcare, and fees — from leisure and hobby spending, then combines them with your expected retirement length to project both monthly cost and the total retirement fund you'd need to cover it.
When estimating essential expenses, account for costs that Medicare or private insurance typically don't fully cover, like dental implants or long-term care, since those become more likely as you age. Leisure spending often runs higher in the first decade of retirement while you're most active, so it's more realistic to base the leisure figure on that early period rather than averaging across your whole retirement. Compare the total fund this calculator produces against your expected Social Security and pension income to spot any shortfall early.
Frequently Asked Questions
A common rule of thumb is 70-80% of pre-retirement income. The actual figure depends heavily on whether your mortgage is paid off and how much you spend on healthcare, so it's more accurate to calculate by category.
This is a simple estimate that does not account for inflation. Living costs typically rise with inflation each year, and healthcare spending tends to increase with age, so it's wise to build in a margin above this estimate.