Preparing To Spend $10,000 a Month in Retirement? Here’s What That Looks Like

AJ Fabino

Thu, February 12, 2026 at 5:01 AM GMT+9 4 min read

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Quick Summary

Spending **$10,000 a month in retirement** is achievable, but retiring at 55, 62, or 65 can change your required savings by more than $1 million.

Early retirees may need more than $3.3 million, while those who wait until Medicare and full benefits kick in often need closer to $1.5 million.

Many pre-retirees use **SmartAsset's free advisor-matching tool** to run personalized income, tax, and withdrawal projections with vetted financial advisors before locking in retirement decisions.

Spending $10,000 a month in retirement sounds achievable for many upper-middle-income households. It covers housing, healthcare, travel, insurance, and daily living without constant budgeting.

The problem is that when you retire matters just as much as how much you save.

Many pre-retirees now start by running personalized projections through SmartAsset, which matches users with financial advisors who can model income, taxes, and withdrawal strategies before retirement decisions become permanent.

Without that planning, it is easy to underestimate how quickly $10,000 a month adds up.

Age 55: Financially, this is the most demanding option.

At this age, you do not qualify for:

Social Security

Medicare

You must cover healthcare privately and rely entirely on investments.

In 2026, average individual health insurance premiums are around $700 to $800 per month on average, and often higher for people in their 50s and early 60s, depending on state and plan.

For a couple in their late 50s or early 60s, combined premiums can run $1,400 to $1,800 per month before subsidies, depending on age and location.

Using a common rule‑of‑thumb such as a 4% initial withdrawal rate, that would suggest roughly $3.3M to $3.5M in invested assets.

This does not account for taxes or market downturns. For early retirees, tax strategy and portfolio structure become important. This is where working with a financial advisor can make the difference between stability and stress.

Age 62: Social Security Lowers the Bar

Age 62 is when Social Security becomes available. The average retired worker receives just over $2,000 per month while many couples receive $3,500 to $4,000 combined.

Assume:

$4,000 monthly Social Security

$10,000 monthly spending goal

Your portfolio now needs to provide:

$6,000 per month

$72,000 per year

That supports savings of roughly $1.8 million to $2.2 million. Delaying retirement by seven years can reduce the required nest egg by more than $1 million.

This is why advisors emphasize claiming strategies. SmartAsset can connect you with professionals who specialize in optimizing Social Security and coordinating it with withdrawals.

Story Continues  

Age 65: Medicare Changes the Math Again

At 65, Medicare replaces private insurance and Social Security benefits increase. Healthcare costs usually fall. Benefits often rise to $4,500 to $5,000 per month for couples.

Assume:

$4,800 in benefits

$10,000 spending target

You now need:

$5,200 per month from savings

$62,400 per year

That supports a portfolio near $1.5 million to $1.6 million. The financial margin of safety improves while the trade-off is working longer.

Why Professional Modeling Matters

These examples use simplified assumptions, real retirement planning is harder. Outcomes depend on:

Taxable vs. tax-deferred accounts

Roth conversion timing

Required minimum distributions  
State taxes  

Market sequence risk

Healthcare inflation

Small differences in structure can shift outcomes by hundreds of thousands of dollars over time.

That is why many households use SmartAsset to compare multiple financial advisors side by side. Seeing different approaches helps identify blind spots before they become costly.

Initial consultations are free, and there is no obligation to hire.

SmartAsset’s matching tool takes about five minutes and connects you with advisors who work with retirees at your asset level and stage of life.

Spending $10,000 a month in retirement is possible. But timing determines how difficult it is.

At 55, it may require more than $3 million.

At 62, closer to $2 million.

At 65, often under $1.6 million.

Those gaps come from healthcare, benefits, taxes, and longevity risk. The earlier you account for them, the more control you keep.

For many future retirees, the smartest first step is running projections with a financial advisor and building a plan that can hold up in both strong and weak markets.

Image: Shutterstock

This article Preparing To Spend $10,000 a Month in Retirement? Here’s What That Looks Like originally appeared on Benzinga.com

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Terms and Privacy Policy

Privacy Dashboard

More Info