I Asked ChatGPT How Much Retirement Will Cost in 25 Years — and It’s Way More Than $1 Million

Core Insights - Retirement planning is challenging due to uncertainty in future financial needs, with the average retirement age in the U.S. being 62 and the estimated amount needed for a comfortable retirement at $1.26 million according to a Northwestern Mutual study [1] Inflation - ChatGPT estimates that to maintain the current retirement lifestyle in 2050, individuals will need approximately $2.65 million, accounting for an assumed average annual inflation rate of 3% over the next 25 years [3] - Historical inflation rates from 2000 to 2024 averaged 2.53%, suggesting that if this trend continues, the required amount could be reduced by $300,000 [3] Healthcare Costs - Healthcare costs are projected to rise significantly, with ChatGPT indicating that they may double or triple by 2050 due to an aging population and chronic health conditions [4] - Current median annual healthcare spending varies: $3,400 for low-risk individuals, $3,900 for medium-risk, and $7,500 for high-risk individuals [4] - Future healthcare costs for medium-risk individuals are estimated to be between $7,800 and $11,700 annually in 25 years [5] Housing - Housing costs are a critical factor in retirement planning, with lower costs for homeowners who have paid off their mortgages, while renters may face rising costs due to inflation or market demand [6]