I’m a Middle-Class Retiree: Here’s My Monthly Budget #CanadaFinance

Budgeting during retirement is not easy, nor is it simple. That said, millions of Americans do it every year.

GOBankingRates spoke with Diane P., a 68-year-old retired teacher who’s learning to live comfortably on a fixed income. After 32 years in the classroom, she’s sharing her real monthly budget to help other retirees navigate their golden years.

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“Everyone talks about saving for retirement, but nobody tells you exactly what it costs to live once you get here!” Diane said.

Here’s her monthly breakdown.

Also see how to set a realistic retirement budget without sacrificing your lifestyle.

Diane broke down the specific numbers.

“I get $2,850 in Social Security benefits each month, plus $2,200 from my teacher’s pension. I also withdraw about $1,500 monthly from my retirement accounts, which still have about $580,000 in them. I try to stick to the 4% rule for withdrawals to make sure my money lasts,” she explained.

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Diane loves her small house and plans to live in it for a long time to come.

“I paid off my house last year, thank goodness! But property taxes, insurance and utilities still add up. Michigan winters aren’t cheap to heat through,” she said.

For Diane, healthcare is one of her biggest (and most important) expenses.

“Medicare Part B premiums take $174.70 right off the top of my Social Security,” she explained. “Then there’s my supplemental insurance, prescriptions and dental care — nothing is truly ‘free’ in retirement!”

Diane said she didn’t love cooking when she was younger, but now it’s a passion.

“I’ve gotten pretty creative with meal planning. My friends and I started a dinner club where we rotate cooking for each other once a week,” she said. “It saves money and keeps us social!”

Diane’s car is paid off, but she still spends a chunk of change on it every month.

“My car is paid off, but there’s still insurance, gas and maintenance,” she said. “I try to combine errands to save on gas — prices are crazy these days!”

In her own words, Diane refuses to sit at home all day.

“Between my yoga classes, book club memberships (I’m in two and they buy the books for us!) and occasional movies with friends, staying active is worth every penny,” she said.

Diane is willing to travel to see the people who matter — and she’s even saving up for a jaunt to Costa Rica.

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