Can You Get By on $10,000 a Month in Retirement?

A monthly retirement income of $10,000 may sound generous, but how much will it really cover? Here’s a closer look at what that budget can actually buy.

Could you get by on $10,000 a month in retirement, or $120,000 a year? On the surface, it sounds more than manageable. In fact, most Americans who have not yet retired and were surveyed in Schroders' retirement research said they would be comfortable with about $5,094 a month once they stop working. Still, depending on where you live, what kind of care you need and the lifestyle you want, the number you need could be far higher.

Healthcare alone can take a significant bite out of retirement savings. A 65-year-old retiree can expect to spend about $172,500 out of pocket on healthcare over a lifetime, and that figure does not include nursing care or emergency room visits.

Then there are housing-related costs such as homeowners association fees, which can exceed $500 a month, along with insurance, groceries and everyday essentials. Add in travel, hobbies and a more expensive retirement community, and $10,000 may not go as far as it first appears.

To make the math easier, we broke down common monthly retirement expenses, from housing and transportation to food and leisure. Keep in mind that this is only a national snapshot. Your own costs could be much higher or lower depending on your health, location and preferences.

Housing

For retirees, housing costs vary widely. Those who own a home outright may avoid a mortgage payment, but they still have to cover property taxes, homeowners insurance and possibly HOA dues. Retirees who rent or still have a mortgage face those monthly payments as well.

Rent: A two-bedroom, 997-square-foot apartment costs $1,932 per month, according to Apartments.com.

Property taxes: The average annual property tax in America was $4,427, up 3.7% from the prior year, according to ATTOM. That works out to $368.92 per month.

Homeowners insurance: The average annual cost of homeowners insurance is $2,808, or $234 per month, according to Insurify.com. Actual premiums vary by location, home size and amenities.

Homeowners association fees: The national median HOA fee was $135 in 2024, according to the U.S. Census Bureau, though costs can be much higher. In New York, for example, the monthly fee is $739.

Total housing expenses: $2,669.92

Healthcare

Healthcare is one of the biggest recurring expenses in retirement, especially when Medicare premiums and out-of-pocket costs are combined.

Medicare premiums
Part B: The standard premium is $202.90 per month. Higher earners pay an additional surcharge, ranging from $81.20 to $487.

Part D: The standard premium is $38.99 per month, while higher earners pay an extra surcharge ranging from $14.50 to $91.

Out-of-pocket expense: Fidelity estimates lifetime out-of-pocket healthcare costs at $172,500 for a person age 65. Someone who lives to 85 would spend about $719 per month, or $8,625 per year.

Total health care expenses: $960.89 to as much as $1,538.89

Transportation

Car payments: The average monthly payment for a new car was $765, according to Experian. For a used car, the average payment was $542 a month. Actual costs depend on the vehicle.

Auto insurance: U.S. News & World Report puts the national average at $209.17 per month, or $2,510 per year. Rates vary based on age, location and driving history.

Gas: A gallon of regular gas costs $4.47. Filling a 12-gallon sedan costs $53.64, while filling an SUV with an 18-gallon tank costs $80.46. If that happens once a week, monthly gas spending runs from $214.56 to $321.84.

Ridesharing: If you reduce the number of vehicles in your household or give up driving and use rideshare services occasionally, the average cost can range from $18 to $40 per trip depending on distance and location. Four rides a month would total between $72 and $160.

Transportation total: From $1,037.73 to as much as $1,456.01.

Food

Food at home: Based on the U.S. Department of Agriculture's official food plans, which set nutritional baselines for items such as whole grains, produce, lean proteins and dairy, a retiree ages 51 to 70 can expect to spend $375 a month on a moderate-cost plan and $448.80 a month on a liberal plan.

Dining out: The Consumer Expenditure Survey from the Bureau of Labor Statistics shows that consumers spend an average of $328.75 a month, or $3,945 a year, on dining out.

Food total: $703.75 to $777.55

Entertainment and leisure

Even after the essentials are covered, retirees usually set aside money for hobbies, subscriptions, social activities and travel. According to the U.S. Bureau of Labor Statistics' Consumer Expenditure Survey, people age 65 and older spend $252.08 a month on these kinds of expenses, or $3,025 a year.

Total: $252.08

Retirement monthly budget totals

Low-end total: $5,624.37

High-end total: $6,694.43

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So, can it work? It depends

A $10,000 monthly income can provide a comfortable cushion in retirement, but whether it is enough depends on where you live and how you spend. In a moderately priced area, it may leave room for travel, hobbies and extra peace of mind.

In more expensive metro areas, however, high property taxes, steep HOA dues and an active lifestyle can quickly drive up fixed costs. The real key is matching your location and spending habits to the income you have.