Many Americans are planning for retirement budgets of less than $2,000 per month, as revealed in a recent GOBankingRates survey. Nearly 60% of respondents aim to stay within the $2,000 monthly mark, with 29% specifically aiming for budgets under $1,500 and another 29% planning budgets between $1,500 and $2,000.

These frugal retirement plans span generations, with Gen Z and Gen X individuals favoring lower budgets, even within the 45 to 54 age group, which includes a significant number of women, demonstrating a preference for budgets in the $1,501 to $2,000 range.However, it’s crucial to recognize that only a minority of survey participants are preparing for more substantial budgets in retirement.

Approximately 14% are targeting monthly budgets ranging from $2,001 to $2,500, while a mere 9% are planning to allocate between $2,501 and $3,000 per month for their retirement expenses. As budgets in retirement increase, the percentage of Americans actively pursuing them decreases significantly. This suggests that while many are aiming for modest retirements, only a small fraction is planning for more comfortable or luxurious post-work lives, highlighting the diversity of budgets in retirement planning.

READ ALSO: Discover How to Become Eligible for Student Loan Relief Through Homeownership and State Programs

Budgets in Retirement, Navigating Financial Realities

Financial experts Wayne K. Maslyk, CFP and CEO at Great Lakes Benefits and Wealth Management express doubts about retiring comfortably on less than $2,000 per month, citing essential costs that can add up to around $1,200 per month, even with a paid-off house. Various expenses, including groceries, healthcare, and personal care, can make a $2,000 budget challenging for retirees to sustain. However, it’s essential to recognize that budgets in retirement are not one-size-fits-all.

Some may find fulfillment in a frugal retirement, involving choices like relocating to a more affordable area and adopting a minimalist lifestyle while prioritizing community-driven experiences.Accurately assessing budgets in retirement and factoring in future changes like healthcare and family support is crucial.

Seeking guidance from a financial advisor can provide valuable insights into managing budgets in retirement and lead to a personalized retirement plan that aligns with individual goals and circumstances. Ultimately, budgeting for retirement is complex, and professional advice can enhance financial security in retirement, helping individuals navigate the various budgetary challenges they may encounter.