Retirement expenses
Retirement expenses
For you retirees, do you have an under-estimated expense that now calls for more spending than what you had anticipated?
- cheese_breath
- Posts: 11786
- Joined: Wed Sep 14, 2011 7:08 pm
Re: Retirement expenses
Until I reached Medicare eligibility age I found my medical insurance premiums rising much faster than I had anticipated. But fortunately my other expenses rose slower than I had anticipated so it was almost a wash.
The surest way to know the future is when it becomes the past.
Re: Retirement expenses
We've had a few medical expenses that were unanticipated, such as a broken ankle, tooth implant, crowns, that were significant but most of the usual expenses remain under our control and our overall average yearly expenses are about what we planned for. If I were doing a forecast of estimated retirement expenses I would include periodic bumps for medical events, cars, RVs, vacations, new roofs, etc..
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Two-time in top-10 in Bogleheads S&P500 contest; 18-time loser
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Re: Retirement expenses
We are spending more on medical expenses than we had anticipated. Partly because DH is not yet 65. Fortunately we have decent healthcare ins through our former employer. It helps. Also because we had not considered LTCi. We took out a policy 4 years ago so those premiums weren't anticipated.
- ruralavalon
- Posts: 26353
- Joined: Sat Feb 02, 2008 9:29 am
- Location: Illinois
Re: Retirement expenses
We underestimated travel expenses, not realizing how much that would be in early retirement as we made trips we did not have time for while I worked. We had included the major vacation-type trips expected, but forgot to account for the desire to go to so many out-of-town family weddings and events and to frequently visit children and grandchildren.
In my view most people who have not been paying all of their own health insurance premiums, without an employer paying part of the freight, seriously misunderstand how much health insurance actually costs.
Like many people we did not use a family budget. So we found it easy to omit, on the first try, expenses that did not recur on a monthly basis (like other insurance premiums, property tax bills), or which did not occur on any scheduled basis (like home improvements, home repairs and maintenace, replacing cars, casualty loss).
In my view most people who have not been paying all of their own health insurance premiums, without an employer paying part of the freight, seriously misunderstand how much health insurance actually costs.
Like many people we did not use a family budget. So we found it easy to omit, on the first try, expenses that did not recur on a monthly basis (like other insurance premiums, property tax bills), or which did not occur on any scheduled basis (like home improvements, home repairs and maintenace, replacing cars, casualty loss).
"Everything should be as simple as it is, but not simpler." - Albert Einstein |
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Re: Retirement expenses
No. My individual HI policy's premium rose 50% in 2 years a few years back, but I switched to another policy. It is a bare-bones policy I never intended to stay with long-term, as the PPACA's exchanges will provide me a broader policy at a cost similar to what I ahd been paying before the 50% increase. So in the end I'l break even.kidsgone wrote:For you retirees, do you have an under-estimated expense that now calls for more spending than what you had anticipated?
My other expenses have been as projected although my co-op board actually lowered the monthly maintenance for 2013 so that is a nice cushion to have against other items which may increase a little bit more than expected at some point later.
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- Location: North Carolina
Re: Retirement expenses
You will have more time for travel, entertainment, hobbies and recreation than when you were working. Therefore, these expenses will increase if you pursue these activities more than when working. i retired at age 66. My employer pays for my supplement and prescription plan so my medical expenses have actually gone down. Some of your increased expenses may be offset by having no work related expenses (clothes, parking fees, commuting, etc). We tend to eat out more partially as an excuse to get out of the house.
- Peter Foley
- Posts: 5533
- Joined: Fri Nov 23, 2007 9:34 am
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Re: Retirement expenses
We underestimated gifting. Since retirement each of our daughters has had their first child. We recognize that 529 plans are an optional expense but market advances in the 14 months since we retired allowed us to be generous.
We also underestimated transportation costs in that I got tired of dealing with nagging repairs and we bought a newer used car to replace the oldest of our two vehicles. Everything else is in line with my expectations.
We also underestimated transportation costs in that I got tired of dealing with nagging repairs and we bought a newer used car to replace the oldest of our two vehicles. Everything else is in line with my expectations.