How to Spend Your Money in Your 70s and 80s (Without Regret)

Knowing how to spend your money in your 70s and 80s can be surprisingly difficult after decades of being rewarded for saving it. Spending principal may feel irresponsible even when the mortgage is manageable, Social Security arrives every month, and the portfolio keeps growing.

But blindly spending down savings creates a different problem.

A better goal is to protect the money that may be needed later, then deliberately use some of the rest for comfort, independence, experiences, family, and causes that matter while those dollars can still improve life.

The Real Spending Problem Is Not the Same for Every Retiree

The idea that older Americans simply need permission to spend makes a good headline, but the evidence is more complicated. In EBRI’s 2024 survey of 3,600 retired Americans ages 62 to 75, 38% described themselves as having a strong saving mindset, while only 11% placed themselves strongly on the spending side.

Yet only 17% believed they had accumulated more retirement savings than they needed. Half said they had saved less than they needed, and 36% reported unexpected spending needs since retirement.

That means there are really two retirement spending problems. Some households are protecting every dollar despite having substantial flexibility, while others need continued caution because the margin between income and expenses is already thin.

The numbers below show why both instincts can make sense. National figures are planning references, not predictions of what one household will pay.

SSA figures above come from its latest published period life table, while care figures come from CareScout’s 2025 national survey, the latest available during 2026. Care costs vary substantially by location, provider, and required services.

The message is not “spend everything.” It is that a retiree needs to know which dollars are protecting a real risk and which dollars are simply accumulating because saving has become automatic.

How to Spend Your Money in Your 70s and 80s Without Guessing

A useful way to make this decision is to give retirement money three jobs. Each job matters, but problems arise when the first category quietly absorbs everything.

The financial floor comes first because spending feels much better when essential costs are protected. The goal is not to choose a perfect number but to identify a reasonable reserve based on actual income, expenses, housing, insurance, health, family support, and possible care needs.

Then money can start doing something besides defending against every possible future. It can buy back time, reduce physical work, create memories, help family earlier, or support activities that might become harder later.

Do Not Turn Life Expectancy Into a Spending Deadline

The video that inspired this article uses a life expectancy calculator as a wake up call. That can be useful emotionally, but it becomes dangerous if the resulting number is treated as a scheduled ending date.

SSA’s latest period life table shows that a 75 year old man has about 10.9 years of remaining life expectancy on average, while a 75 year old woman has about 12.7. At age 80, the corresponding figures are roughly 8.1 and 9.5 years.

Those are averages across large populations. Some people will live for fewer years, while many will live far longer, so spending a portfolio down precisely to the average would create significant longevity risk.

A better use of life expectancy is to recognize that time is finite without pretending its endpoint is known. That distinction allows someone to spend more intentionally while still protecting against living into the 90s or beyond.

Create a Permission to Spend Budget

Lifelong savers often know exactly how much they are allowed to withdraw for bills but have no number for enjoyment. That means every vacation, new chair, landscaping bill, or family gift must win an emotional argument against 40 years of saving habits.

One solution is a separate annual permission to spend amount. This is money intentionally assigned to discretionary life after the household has accounted for essential expenses, taxes, emergency reserves, insurance, likely major repairs, and its plan for possible care.

For example, a hypothetical retiree might decide that an additional $500 per month can reasonably be used without weakening those protections. That creates a $6,000 annual budget for experiences, convenience, gifts, hobbies, or anything else that improves life.

Another household might comfortably allocate $1,500 monthly, or $18,000 annually. The appropriate number depends on resources, so the value is not the amount itself but changing the default decision from “keep everything” to “this portion has already been approved for use.”

An RMD should not be confused with this budget. For many retirement account owners, required minimum distributions generally begin at age 73 under current law, but an RMD is a tax distribution requirement rather than an instruction to consume the money.

Spend Earlier on Things With a Shrinking Opportunity Window

Some purchases provide roughly the same benefit at 78 as they do at 88. Others have an opportunity window that can narrow because of energy, mobility, a spouse’s health, family schedules, or simple changes in interest.

A family trip is an obvious example. Someone who has the resources and wants to take children or grandchildren somewhere meaningful may get more value from doing it while everyone can participate than from preserving the same amount for an inheritance decades later.

This does not require a $125,000 family trip like the striking example in the supplied video. A rented beach house, annual reunion, train trip, upgraded airline seat, museum membership, hobby workshop, or several weekends with family can accomplish the same underlying goal at very different budgets.

Experiences are not automatically better than possessions either. A comfortable mattress, hearing technology, hobby equipment, patio, woodworking tools, accessible shower, or favorite chair may be used hundreds of times and produce more value than an expensive vacation someone never wanted.

The decision shortcut is simple. Ask whether delaying the purchase is likely to make it cheaper, more useful, or more enjoyable, or merely postpone something already affordable.

Pay for Ease and Independence, Not Just More Stuff

One of the most overlooked retirement luxuries is paying someone else to do work that has stopped being worth your time or effort. That may mean lawn care, snow removal, housekeeping, grocery delivery, tax preparation, handyman visits, transportation, or occasional household assistance.

This is not an admission that someone cannot manage independently. In many cases, buying help is precisely what allows a person to continue choosing how and where they live.

Consider a hypothetical 79 year old homeowner who still enjoys the house but dislikes cleaning two bathrooms and climbing a ladder to clear gutters. Spending on cleaning and exterior maintenance might preserve the parts of homeownership that matter while removing the parts that have become burdensome.

The same logic applies to transportation. Paying for occasional rides may feel extravagant to someone who spent decades driving everywhere, but it can be cheaper than maintaining a rarely used second car and may keep restaurants, appointments, friends, volunteering, and community activities easier to reach.

Keep Possible Long Term Care Separate From Fun Money

One cost deserves special treatment because it can overwhelm a casual retirement budget: long term support. The Administration for Community Living says about 7 in 10 Americans age 65 or older will need some form of long term services and supports during their lives, with needs differing greatly from person to person.

CareScout’s 2025 national survey found a median rate of $35 per hour for a nonmedical caregiver. The survey’s standard 44 hour weekly example works out to $80,080 annually, which shows how quickly even noninstitutional help can change a household budget.

Here is what that hourly national median looks like at several hypothetical schedules. These calculations use $35 per hour for 52 weeks and do not predict what a provider in a particular city will charge.

CareScout also reported 2025 national medians of $6,200 per month for assisted living, $9,581 for a semi private nursing home room, and $10,798 for a private nursing home room. Actual prices can differ sharply by state, metropolitan area, provider, and level of assistance.

Medicare generally does not pay for long term custodial care, meaning help with activities such as bathing, dressing, or eating when skilled medical care is not required. Medicaid may cover certain long term services for eligible people, but eligibility and benefits vary by state.

This does not mean everyone should reserve enough cash to privately fund years of around the clock care. It means a thoughtful spending plan should identify how that risk would be handled before declaring every remaining investment dollar available for vacations and gifts.

Giving While Living Can Be More Meaningful

The video makes a compelling point about inheritance. If money is definitely intended for children, grandchildren, siblings, friends, or charity, there can be emotional value in seeing some of that money used while the giver is alive.

But gifts should come after the donor’s own financial floor has been examined. Future housing, care, taxes, insurance, emergency needs, and loss of a spouse’s income can all change what looks like “extra” money today.

Charitably inclined IRA owners also have a current tax option worth knowing about. A qualified charitable distribution generally allows an IRA owner who is at least age 70½ to direct eligible IRA funds straight from the trustee to a qualifying charity.

For 2026, the annual QCD exclusion limit is $111,000 per eligible individual, and a qualifying QCD can count toward an RMD. The QCD age of 70½ is important because it is different from the current general RMD starting age of 73.

A QCD also has technical requirements, so simply withdrawing money first and later writing a charitable check is not the same transaction. Anyone planning a large charitable IRA transfer should verify the current IRS rules and coordinate the transfer correctly.

Annuities Can Buy Simplicity, but They Are Not Free Money

The video describes buying a single premium immediate annuity to create a monthly check for life. That can fit some retirement plans because an immediate annuity converts a lump sum into contractually scheduled income that can begin relatively soon after purchase.

The appeal is easy to see. Someone who hates withdrawing investments may find a predictable monthly payment psychologically easier to spend, and a joint-life contract may continue income for a surviving spouse depending on the option selected.

But saying an annuity makes sure someone will “never run out of money” goes too far. An annuity covers the income promised by the contract, while housing, care, inflation, emergencies, and other costs may still exceed that income.

Liquidity matters too. Once money has been exchanged for certain immediate annuity contracts, access to the original lump sum may be limited or unavailable, and guarantees depend on the insurer’s financial strength and claims paying ability.

The tax example in the video also should not be generalized. IRS rules say annuity payments can be fully or partly taxable depending on how the annuity was funded and whether the owner has after tax investment in the contract.

Do Not Let “100 Minus Your Age” Choose Your Portfolio

Another idea in the video is the old “100 minus your age” rule, which would put a 77 year old at roughly 23% stocks. It is simple, but simplicity does not make it appropriate for every household.

Current Investor.gov guidance emphasizes time horizon and risk tolerance when choosing asset allocation. Other relevant factors can include income sources, expenses, liquidity needs, tax circumstances, and the role the portfolio must play.

A retiree with a pension covering nearly every essential expense may be able to tolerate a different investment mix than someone withdrawing heavily from investments each month. A 78 year old supporting a younger spouse may also have a longer household planning horizon than age alone suggests.

The more useful question is not “What percentage of stocks should a person my age own?” It is “How much money may need to be withdrawn during a bad market, and how much volatility can this household reasonably tolerate without abandoning the plan?”

These distinctions correct several common retirement spending shortcuts.

The largest lesson from the table is that retirement spending cannot be reduced to one formula. A simple rule can begin a conversation, but it should not replace the household’s actual numbers.

Make Money Easier to Manage as Well as Easier to Spend

Spending in the 70s and 80s is also a good reason to reduce unnecessary financial friction. Ten bank and brokerage accounts, forgotten subscriptions, multiple credit cards, scattered insurance papers, and unclear household instructions can consume time even when nobody has any problem managing money.

CFPB guidance encourages older adults and families to organize important financial information and plan for situations in which illness or another disruption makes routine financial tasks harder. Its current fraud resources also emphasize protections against scams and financial exploitation.

One useful tool is a trusted contact on an investment account. A trusted contact does not automatically receive authority to trade, see account balances, or make decisions, but the brokerage may contact that person in situations such as difficulty reaching the account owner or concerns about possible exploitation.

There is no need to wait for a crisis to simplify. Paying an accountant, attorney, organizer, financial professional, or trusted household helper for work that removes confusion can be a perfectly legitimate use of retirement money.

A One Week No Regret Spending Review

A good spending plan does not begin at the travel agency or brokerage account. It begins with a clear picture of what is protected, what is truly surplus, and which opportunities matter now.

The following review can be completed over several days instead of trying to settle every retirement decision at once. Couples should complete it together because one partner’s definition of “safe” can be very different from the other’s.

The most revealing step is often number four. A household may discover that it truly needs every available dollar, or it may discover that years of automatic saving have created far more flexibility than its current lifestyle reflects.

Either answer is useful. Spending without regret begins with knowing which situation is actually yours.