You Might Be An Upper Class Retiree If You Spend This Much Per Month

On average, Americans aged 65 and older tend to spend roughly $5,100 a month to cover outgoing costs, or a little over $61,000 annually, based on 2024 data from the St. Louis Federal Reserve Bank (FRED). Average figures can provide a bit of clarity when trying to make sense of what a typical retiree might need to balance their budget. Spending at this level would demand a principal balance of just over $1.3 million based on a 4.7% annual drawdown figure — the recommended update to the 4% rule. However, upper-class retirees have more spending power available to them, and tend to use that enhanced capability. In a study of Social Security and Bureau of Labor Statistics (BLS) data, GoBankingRates found that upper-class retirees average an annual expenditure figure of $106,150 in 2026. That comes out to roughly $8,850 per month.

There are many signs that indicate someone's upper-class status, and spending habits can be one of the most visible signals. Importantly, this six-figure spending average clocks in notably higher than the median salary of those still working: The median household in the U.S. brought in around $81,600 in 2024, according to the U.S. Census Bureau, and less than 43% of households earned $100,000 or more that same year (via Statista). This suggests that retirees who can support a spending habit of well over almost $9,000 per month likely have resources exceeding those of more than half of working-age Americans, let alone many of their retired peers.

The largest expense for retirees across the spectrum is housing. According to BLS data, both middle- and upper-class retirees average a high commitment here, but upper-class spenders average around $10,000 more annually on housing costs. A larger or more luxurious home might be one underlying reason for this enlarged cost. It takes more to heat and cool a larger house, and mortgage figures and property taxes are also higher on a more costly property. Some upper-class retirees might also carry repayment obligations on more than one property by keeping a vacation or rental home in their portfolio, skewing the numbers in another way.

The average retiree also spends around $3,000 on entertainment expenses as of 2024, according to FRED data. With significantly more funding to throw around, upper-class retirees will have a lot more volume to commit to disposable income. In fact, a 2025 Phocuswright survey found baby boomers — who are largely enjoying retirement in 2026 — are more likely to spend over $6,000 while on vacation than any other generation (via TravelPulse). This is likely skewed by upper-class spenders who have the time and cash available to spare few, if any, expenses.

Upper-class retirees also tend to spend more on healthcare than others, which is partially due to the fact that some Medicare premiums can rise based on income level. Even so, GoBankingRates notes the average upper-class retiree only spends around $2,000 or $3,000 more on healthcare than middle-class retirees annually, suggesting this expense still maintains a smaller budget share for those with greater retirement assets at their disposal.