![\"Retirement](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/10\/elderly-senior-woman-widow-sits-on-bench-overlooking-nature-alone_iStock-157678860.jpg\")
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GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years Trusted by By their early 80s, many retirees expect their budgets<\/a> to shrink as travel slows and their needs diminish. But for affluent retirees, the story is often very different. Healthcare costs rise, long-term care becomes more likely and maintaining a comfortable lifestyle keeps expenses elevated.<\/p>\n According to the 2024 Consumer Expenditure Survey<\/a>, households headed by someone 75 or older spend about $53,031 annually \u2014 roughly $4,400 per month. However, according to Linda Jensen, a retirement planning expert and founder of\u00a0Heart Financial Group<\/a>, affluent retirees often spend double or more, with budgets ranging from $8,000 to $ 10,000 or more per month, depending on location, health and lifestyle choices.<\/p>\n \u201cThe affluent think they won\u2019t run out of money in retirement, but without careful planning, they can see their assets disappear,\u201d warned Jensen.<\/p>\n<\/p>\n Here are the major expenses that upper-class octogenarians are likely to incur each month<\/a>.\u00a0<\/p>\n Long-Term Care<\/p>\n Few retirees can escape the need for long-term care. According to the Administration for Community Living, 70% of retirees will need long-term care at some point. Unfortunately, the cost of that type of care is increasingly prohibitive, according to the 2024 Genworth Cost of Care Survey<\/a>, which puts in-home care costs at nearly $78,00 per year \u2014 though Jensen says that figure is likely modest.\u00a0<\/p>\n \u201cAssisted-living facilities cost around $10,000 per month. And if you want a private room, those costs can skyrocket,\u201d she said. <\/p>\n For retirees with Alzheimer\u2019s or dementia, the bill can be even higher. A 2025 Alzheimer\u2019s Association<\/a> report estimates the total lifetime out-of-pocket costs for a family member with dementia to be nearly $247,000 a year.\u00a0<\/p>\n Many retirees assume Medicare will handle long-term care.\u00a0<\/p>\n \u201cIt doesn\u2019t,\u201d Jensen stressed, noting most affluent households pay for more comprehensive coverage.<\/p>\n Housing and Taxes<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
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