Question

Budget for 55- to 65-year-old Business Professionals Talk to mentors, family members, or relatives between the ages of 55-65 and who are nearing retirement. Develop a sample budget for someone aged 55-65, considering the adjusted income and expenses in this life phase.

Answer 1

The sample budget for someone aged 55-65 would be:

Income:

• Salary: $120,000
• Pension: $30,000
• Social Security: $20,000
• Investment income: $10,000

Total income: $180,000

What goes into the budget ?

Some of the expenses that will go into the budget are:

• Housing: This is a significant expense, and the amount will vary depending on location and housing type.
• Transportation: The cost of transportation will depend on car ownership, public transportation availability, and lifestyle.
• Food: Groceries and dining out expenses should be considered.
• Healthcare: Healthcare costs increase with age, and this includes insurance premiums and out-of-pocket expenses.
• Debt payments: Existing debt should be prioritized for repayment.

The expenses portion would therefore be:

• Housing: $2,500 (mortgage/rent, utilities, property taxes)
• Transportation: $500 (car payment/maintenance, public transportation)
• Food: $1,000
• Healthcare: $1,500 (insurance premiums, out-of-pocket expenses)
• Debt payments: $1,000 (student loans, credit cards, etc.)
• Personal care: $300 (clothing, haircuts, etc.)
• Entertainment: $500 (dining out, hobbies, travel)
• Savings/Investments: $30,000
• Taxes: $20,000 (federal, state, local)
• Total expenses: $142,300

Surplus: $37,700