Can You Live on $10,000 a Month in Retirement?
A $10,000 monthly retirement income sounds like a dream budget, but will it cover your future expenses? We broke it down to see how far it actually goes.
Could you live off $10,000 a month in retirement, or $120,000 a year? It seems easy. Most not-yet-retired Americans polled by Schroders 2026 US Retirement Survey said they would be comfortable with $5,094 a month in retirement. But depending on your zip code, healthcare needs and lifestyle, you may need a lot more.
After all, at last check, a retired 65-year-old can expect to spend $172,500 in out-of-pocket healthcare expenses, and that doesn't include any stints in a long-term facility or visits to the emergency room.
Then there are Homeowners Association fees — which can top $500 a month — plus insurance, food and other daily expenses that quickly add up. Throw in costly hobbies and a pricey retirement community, and that $10,000 won't stretch nearly as far.
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Wondering just how far? Wonder no more; we did the heavy lifting for you. From rent to auto insurance, here is what retirees pay monthly for key expenses, so you can see how your budget stacks up. Keep in mind this is just the national baseline. Depending on where you live, your health, and your lifestyle, it could be a lot higher or lower.
Housing
When it comes to housing expenses, retirees who own their home outright won't have a mortgage, but they still face property taxes, homeowners insurance and HOA fees. Those with a mortgage or who rent will have those monthly payments to manage.
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 in 2025, up 3.7% from the prior year, according to ATTOM. That's $368.92 per month.
Homeowners insurance: The average annual cost of homeowners insurance is $ 2,808, or $234 per month, according to Insurify.com. The price you pay varies depending on your location, the size of your home and amenities.
Homeowners association fees: The national median HOA fee in 2024 was $135, according to the U.S. Census Bureau, but it can be much higher. For example, in New York, it's $739 a month.
Total housing expenses: $2,669.92
Healthcare
Between Medicare premiums and out-of-pocket costs, healthcare is a big part of a retiree's budget.
Medicare Premiums
Part B: The standard for 2026 is $202.90 per month. High earners pay an additional Part B surcharge, ranging from $81.20 to $487.
Part D: The standard for 2026 is $38.99 per month, although high earners will pay an additional Part D surcharge, ranging from $14.50 to $91.
Out-of-pocket expense: $172,500 for a person age 65 during his or her lifetime, according to Fidelity. An individual who lives to 85 would pay $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 car payment for a new car was $765 a month in the first quarter of 2026, according to Experian. A used car payment was $542 a month. Your payment can be higher or lower, depending on vehicle type.
Auto insurance: The national average for auto insurance, according to U.S. News & World Report, is $209.17 a month, or $2,510 annually. However, the price you pay varies based on your age, where you live and how you drive.
Gas: A gallon of regular gas currently goes for $4.47. That means filling the tank of a 12-gallon sedan costs $53.64. Filling an SUV with an 18-gallon tank will cost $80.46. Do that once a week, and in a month you've spent $214.56 to $321.84 on gas.
Ridesharing: If you downsize to one vehicle or get rid of your car altogether and need a ride from time to time, it can cost an average of $18 to $40 per ride depending on where you live and how far you're going. Do that four times a month, and you've spent between $72 and $160.
Transportation total: From $1037.73 to as much as $1456.01.
Food
Food at home: Based on the U.S. Department of Agriculture's official food plans — which provide nutritional baselines including whole grains, produce, lean proteins and dairy — a retiree aged 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 Bureau of Labor Statistics' Consumer Expenditure Survey shows that consumers spend an average of $328.75 a month, or $3,945 per year, on dining out.
Food total: $703.75 to $777.55
Entertainment and leisure
While the remaining funds in a $10,000 monthly budget can cover fun and travel, retirees typically budget for hobbies, subscriptions, social outings and leisure. According to the U.S. Bureau of Labor Statistics' Consumer Expenditure Survey, that totals $252.08 per month, or $3,025 per year for people 65 and older.
Total: $252.08
Retirement Monthly Budget Totals
Low-End Total: $5,624.37
High-End Total: $6,694.43
Can you pull it off? It depends
A $10,000 monthly income offers a strong financial cushion in retirement, but whether it's doable for you depends on where and how you live. In a moderate-cost area, that budget leaves plenty of room for travel, hobbies and peace of mind.
But in high-cost metro areas with steep property taxes, high HOA fees and active lifestyle demands, fixed costs can eat away at the total fast. The key is aligning your location and personal habits to make that money last.
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