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Making Your Money Last

Living on a $500,000 Nest Egg

Simple Pleasures

Annual income: $70,000
$30,000 from Social Security
$20,000 from a pension
$20,000 from personal savings

Expenses: About $45,000 will go to pay for basics, such as food, housing, health care and taxes, according to the Aon study. But if you don’t have retiree health benefits from your former employer, expect to pay an extra $5,000 a year or so for Medi­care premiums and supplemental medi­gap cover­age. The study budgets about $225 a month for entertainment. Skip the weekly Saturday night at the multiplex and join Netflix instead.

Lifestyle: With a cushion of about $20,000 a year, you can put a down payment on a used RV and tour the country. Focus on staying healthy and active because your budget doesn’t include long-term-care insurance premiums. If you need cash in the future, you could take out a reverse mortgage on your home.

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