She won't be obligated to work. Lots of old retirees get by on less than what you have planned out for her. She used to have a household income of $150k, so she's experiencing a pretty big downscaling (not to mention losing her husband-). She never made a lot of money herself, but does enjoy working--she's an extrovert and a people person. (Sez I'm her only friend who tells her what she needs to hear rather than what she wants to hear ;-)ASIDEFortunately, divorcees are entitled to 3 years of COBRA (not sure if that's Federal, state or her ex's employer's rule), which conveniently takes her right up to Medicare without having to qualify for an individual policy. Cost for this spousal COBRA is $500/mo this year--a good deal.