A rich couple spends time together and eats lunch.

Moyo Studio / iStock/Getty Images

Commitment to Our Readers

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 and our products and services review methodology.

20 Years
Helping You Live Richer

Trusted by
Millions of Readers

In retirement, overall spending tends to decrease with age. This phenomenon often occurs due to factors such as no longer having mortgage payments or car loans that get paid off over time, along with potential lifestyle changes like downsizing.

For upper-class retirees, a similar dynamic can still take place, but they still often spend more than the average person.

Among the highest quintile of earners regardless of age, average monthly spending per household is around $12,508, according to the Consumer Expenditure Surveys (CE) program from the U.S. Bureau of Labor Statistics.

Yet only 3% of retirees spend over $7,000 per month, with just 1% spending more than $10,000 per month, according to an Employee Benefit Research Institute (EBRI) survey.

In other words, a fraction of retirees find themselves among the highest spenders overall, likely due to the trend of spending decreasing with age. Still, upper-class retirees often spend more than the average retiree.

What Spending Looks Like at Age 81

Among those ages 65 and above, average household spending is around $5,007 per month, according to the CE surveys. That’s about 22% less than the average across all ages. 

The CE surveys do not break out spending across age and income combined, but we can estimate that by comparing different survey metrics. As mentioned, the approximately $12,508 per month in spending among the highest-quintile earners, regardless of age, is around 94% more than average.

So, if we assume that upper-class retirees spend 94% more than the approximate average $5,007 per month in spending average for those 65 and over, that puts the figure at about $9,714 per month. Based on the small proportion who said they spend this much in the EBRI survey, this figure might be a little high, but it provides a rough approximation.

From here, we can estimate what spending looks like more specifically at age 81 based on how spending typically decreases with age.

The CE surveys show that average spending is about $6,948 per month from ages 55 to 64, and from 65 to 74, the average falls to around $5,429, which is around a 22% decline over a decade. Among those ages 75 and over, the average is around $4,419, which is around a 19% decline.

The math isn’t perfect since the CE surveys don’t break out the ages past 75, but we can very roughly assume that spending falls in the ballpark of 2% per year based on this downtrend across different age groups.

So, if we assume that the $5,429 in monthly spending at age 65 to 74 represents the midpoint age of 70, and then apply a 2% decline until age 81, that would put average monthly spending at about $4,347 — very close to the overall average from the CE surveys at age 75 and above.

Then, if we assume that the average upper-class retiree spends 94% more than the average middle class retiree, based on the average gap across ages in the CE surveys, that results in monthly spending of $8,433.

Again, this isn’t perfect math, but given that it has some correlation with the EBRI survey, it indicates we’re on the right track.

All that’s to say, upper-class retirees likely spend significantly more than the average retiree who often struggles to make ends meet comfortably within retirement.

Final Take To GO

But regardless of your wealth level, retirement planning can be tricky. Having more money can mean added complexity, such as around estate planning and insurance, let alone ensuring that you’re spending in a way that can sustain your intended lifestyle indefinitely, rather than having to cut back in your remaining years.

So, speaking with a financial advisor to ensure your spending, investing, and overall retirement planning are on the right track is often a good idea.