Here's another take on what it costs to retire.
New study quantifies what people spend in retirement
By Robert Powell, MarketWatch
(You will probably need to register to view)
The article quotes a new study showing that typical married adults [whatever that may be] ages 65 and older have annual expenditures totaling $14,792. The top fifth in income have average expenses of $25,567 and the lowest fifth have average expenses of $10,111. [Nothing in the study about the quality of life at these expense levels.]
The breakdown on expenses is:
Housing (includes utilites, taxes, insurance, maintenance) - 29%
Health Care - 20%
Food - 13%
Clothing - 2%
Transportation - 12%
Entertainment - 10%
Gifts - 10%
Other - 4%
The authors of the study say the amount spent on housing was a surprise, but 25% of retirees 65 to 84 still have a mortgage.
The bottom line of the article..." you really need to evaluate the future value of a dollar spent and a dollar saved today." Well, duhh...