Living in LA's Koreatown, I often hear this question: how much money does a couple need to retire comfortably each month?

When discussing this in the context of Los Angeles, the numbers can be quite realistic. Instead of vaguely saying "a lot is needed," it seems helpful to break down actual living expenses.

First, the biggest expense is housing. LA is known for its high housing costs. If you already own a home and have no mortgage, your situation is much more stable. However, considering property taxes, insurance, and maintenance costs, it's said that you'll need about $800 to $1,200 per month.

On the other hand, if you need to rent, the situation changes. Nowadays, even a small apartment in LA typically rents for between $2,000 and $3,000. If the location is slightly better or the building is new, it can easily exceed $3,500.

Next, let's consider food and basic living expenses. Even for a single person, grocery prices have risen significantly, costing around $500 to $800 per month. If you eat out frequently, this amount increases. Adding in basic utilities like electricity, gas, internet, and cell phone bills, you can expect an additional $200 to $500 per month.

Healthcare is another essential aspect of retirement. In the U.S., medical expenses take up a significant portion of living costs. After age 65, Medicare is available, which is a great help, but many people still budget around $300 to $600 per month for supplemental insurance, medication, and doctor visits. Depending on health conditions, this cost can increase.

Another important factor is transportation costs. LA is a city where living without a car is challenging. Including car insurance, gas, and maintenance, you can expect to spend about $300 to $500 per month. If you're buying a new car or have a loan, costs can rise to over $900.

By calculating these individual items, a rough picture emerges. For those who already own a home, many find that living on about $3,000 to $4,000 per month allows for a relatively stable lifestyle.

If renting, it's common to hear that you need around $5,000 to $6,000 per month to avoid significant financial stress. If you want to travel or enjoy hobbies comfortably, some suggest budgeting over $6,000 per month.

Considering the situation of Korean individuals, a different concern arises. Especially for those who have been self-employed for a long time, there is often anxiety when discussing retirement. The reason is simple: self-employment often leads to irregular income. Many do not report high income when filing taxes, and due to the nature of their business, they may earn enough for living expenses while having low official income records.

The problem is that when retirement comes, this structure becomes apparent. If income reporting has been low, Social Security benefits may be less than expected. One way to create a stable cash flow after retirement in the U.S. is through Social Security, but if reported income is low, this amount can significantly decrease.

Thus, among those who have been self-employed for a long time, there is often a noticeable difference between those who are well-prepared for retirement and those who are not. If a business has been very successful and assets have been accumulated, there is no issue. However, if that's not the case, concerns about how to cover living expenses after retirement often grow.

Ultimately, the most important factor in retirement is having a stable cash flow each month. Depending on whether you own a home, how much you spend on healthcare, and your lifestyle, the required amount varies, but many suggest that at least $4,000 per month is necessary for basic living in LA. For a more comfortable lifestyle, many consider a budget of $5,000 to $6,000 per month.

Therefore, when discussing retirement, it's essential not just to think about age but also to consider how to record income and prepare assets from now on. Especially for those who are self-employed, it's often said that thinking about income reporting and retirement preparation together is crucial. Retirement doesn't come suddenly; it becomes easier based on how well you prepare in advance.