Salary Needed to Live in Madison as a Retiree
A retired individual (65+) needs approximately $56,539/year to live comfortably in Madison, WI, including 5% savings.
Direct Answer
A retiree needs about $56,539/year to live comfortably in Madison, WI. The bare-minimum salary is $52,719/year, but the comfortable figure includes a 5% savings target and a monthly after-tax budget of $3,435.
The minimum scenario leaves about $3,251/mo after tax and no planned savings. The comfortable scenario uses $4,712/mo gross pay to cover expenses, taxes, and a savings buffer.
Hybrid salary estimateBLS, HUD, ACS inputsLast verified May 2026
Comfortable Salary
$56,539
with 5% savings
Bare Minimum
$52,719
$4,393/mo gross, no savings buffer
Monthly Expenses
$3,251
11% below national avg
Detailed Monthly Budget for a Retiree in Madison
| Expense | Madison | Nat'l Avg | Diff |
|---|---|---|---|
| 1-2BR Senior-Friendly Rent | $1,060 | $1,448 | -27% |
| Groceries | $270 | $189 | +43% |
| Utilities | $133 | $183 | -27% |
| Transportation | $238 | $211 | +13% |
| Car Insurance | $144 | $211 | -32% |
| Health Insurance | $605 | $630 | -4% |
| Medicare Supplement | $208 | $200 | +4% |
| Prescription Drugs | $156 | $150 | +4% |
| Internet + Phone | $125 | $120 | +4% |
| Recreation & Social | $208 | $200 | +4% |
| Home Maintenance | $104 | $100 | +4% |
| Total Monthly | $3,251 | $3,642 | -11% |
How We Calculated the Salary
Monthly expenses:$3,251
Target savings (5%):$184/mo
Monthly after-tax needed:$3,435
Effective tax rate:26%
Gross annual salary needed:$56,539
What Drives the Salary Number?
Housing
$1,060
1-2BR Senior-Friendly rent is 33% of this monthly budget.
Taxes
26%
Estimated federal plus WI state tax reserve used to convert take-home needs into gross salary.
Savings target
5%
$184/mo is reserved for savings so the salary is not just break-even.
Local index
104/100
Madison is below the national baseline; the model adjusts baseline spending by local rent and cost data.
Compare Salary Needed in Nearby midwest Cities
Salary Planning Checklist
- Keep 1-2br senior-friendly housing near $1,060/mo or adjust the salary target upward.
- Budget $801/mo for persona-specific costs such as Medicare Supplement and Prescription Drugs.
- Use $52,719/year as the survival floor and $56,539/year as the healthier negotiation target.
Other Household Types in Madison
Related Pages
FAQ
What salary does a retiree need in Madison?
A retiree needs approximately $56,539/year ($4,712/month gross) to live comfortably in Madison with a 5% savings rate.
How much is rent for a retiree in Madison?
A 1-2br senior-friendly in Madison costs approximately $1,060/month, which is the largest single expense at 33% of the total budget.
Is Madison affordable for a retiree?
Yes, Madison is 11% more affordable than the national average for a retiree.