How much do you spend annually in retirement?

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bg5
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How much do you spend annually in retirement?

Post by bg5 »

I know that there are alot of variables such as cost of living but I am curious what people spend annually in retirement.

My gut tells me that $50,000 annually would be living "high on the hog" assuming all debts are paid off.

If anyone is willing to share I think it would be interesting.

Thanks,

BG5
Silk McCue
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Re: How much do you spend annually in retirement?

Post by Silk McCue »

The search bar upper right corner of this page is your friend.

Below is a post from January 2021 with 112 replies.

viewtopic.php?t=335148&start=50

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Gill
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Re: How much do you spend annually in retirement?

Post by Gill »

bg5 wrote: Tue Apr 06, 2021 1:10 pm My gut tells me that $50,000 annually would be living "high on the hog" assuming all debts are paid off.
You'll find there are many retirees on this board who spend that much on one category such as housing, income taxes or travel.
Gill
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JoeRetire
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Re: How much do you spend annually in retirement?

Post by JoeRetire »

bg5 wrote: Tue Apr 06, 2021 1:10 pm My gut tells me that $50,000 annually would be living "high on the hog" assuming all debts are paid off.
$50,000 wouldn't be very "high on the hog" at all in my locale. Your mileage may vary.

We budgeted $100,000 (adjusted by inflation annually) in our retirement plans. But so far, we've never spent anywhere near that much.
We have averaged around $65,000 - less last year due to no travel, no family weddings, no new grandchildren, no new cars, etc. Hopefully, we'll get to spend more this year.
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Wricha
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Re: How much do you spend annually in retirement?

Post by Wricha »

Gill wrote: Tue Apr 06, 2021 2:20 pm
bg5 wrote: Tue Apr 06, 2021 1:10 pm My gut tells me that $50,000 annually would be living "high on the hog" assuming all debts are paid off.
You'll find there are many retirees on this board who spend that much on one category such as housing, income taxes or travel.
Gill
I would say the average has be over $100k, not including taxes, without debt.
Franklin
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Re: How much do you spend annually in retirement?

Post by Franklin »

Gill wrote: Tue Apr 06, 2021 2:20 pm
bg5 wrote: Tue Apr 06, 2021 1:10 pm My gut tells me that $50,000 annually would be living "high on the hog" assuming all debts are paid off.
You'll find there are many retirees on this board who spend that much on one category such as housing, income taxes or travel.
Gill
OK sorta my first time to post here but......this relates to me. My housing (prop tax is $19K), home ins is $5K, upkeep is $5K, and taxes (fed and state $100K plus). So yes there are those who have this issue. Thankfully Ive the resources to cover this but we do exist!! I think y'all call it Fat-fire. Still, I am about 4% WR and the nest egg is in tact. But, my retirement spend was always planned to be higher than my working days....that is how it was planned.
Mike Scott
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Re: How much do you spend annually in retirement?

Post by Mike Scott »

The average American or the average Boglehead?
quantAndHold
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Re: How much do you spend annually in retirement?

Post by quantAndHold »

bg5 wrote: Tue Apr 06, 2021 1:10 pm I know that there are alot of variables such as cost of living but I am curious what people spend annually in retirement.

My gut tells me that $50,000 annually would be living "high on the hog" assuming all debts are paid off.

If anyone is willing to share I think it would be interesting.

Thanks,

BG5
We spend about twice that and are definitely not living high on the hog.

This is something you’ll need to figure out for yourself. How much do you spend now? Do you know? We spend about what we spent before retirement. We paid off the mortgage and got the kids through college, so those expenses went away, but we travel more now, and have had some extraordinary expenses on the house. It’s easy to think of the house expenses as being unusual things that won’t be repeated next year, but pretty much every year, it’s been something. This year, we probably need a car. So it needs to get budgeted in.
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GerryL
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Re: How much do you spend annually in retirement?

Post by GerryL »

Well, this year so far, when charitable giving is excluded, I haven't even spent $1500 a month, so ....
Significantly below my target spend.

Many of us on this forum are in the situation to be able to spend what we need to spend, and those of us who are naturally frugal can also spend what we want to spend.
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thursdaysd
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Re: How much do you spend annually in retirement?

Post by thursdaysd »

Just knowing how much I spend in a given year isn't going to help you much. I spent almost exactly the same amount in 2016 and 2019, but the composition was quite different. In 2016 I spent three and a half months traveling, while in 2019 I didn't travel at all. In 2019 my medical costs were much higher, because I was taking an expensive medication I didn't need in 2016, and my Medigap plan and Medicare cost more.

For what it's worth, both years were well over $50,000, if you include taxes. But again, maybe I live in a high tax state and you live in a no-tax state? (Actually I live in a lowish tax state, but I had to start taking RMDs in 2017 which increased my federal taxes and Medicare costs.)

You need to look at what it costs you to live now, and decide what may go up and what may go down. Plus, your expenses when you first retire, and your expenses, say, fifteen years in, are liable to differ.
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quantAndHold
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Re: How much do you spend annually in retirement?

Post by quantAndHold »

JoeRetire wrote: Tue Apr 06, 2021 2:25 pm
bg5 wrote: Tue Apr 06, 2021 1:10 pm My gut tells me that $50,000 annually would be living "high on the hog" assuming all debts are paid off.
$50,000 wouldn't be very "high on the hog" at all in my locale. Your mileage may vary.

We budgeted $100,000 (adjusted by inflation annually) in our retirement plans. But so far, we've never spent anywhere near that much.
We have averaged around $65,000 - less last year due to no travel, no family weddings, no new grandchildren, no new cars, etc. Hopefully, we'll get to spend more this year.
Lol. We spent enough in the month after we got vaccinated that our credit card issuer started sending us emails about our increased spending, asking if we needed help. We had some pent up spending we needed to get out of our system, to put it mildly. We went out to dinner four times the first week.
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MathWizard
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Re: How much do you spend annually in retirement?

Post by MathWizard »

Total estimate for spending is just over $90K/yr. on $1.1 million in tax deferred plus $400K on Roth,
plus a $4K/yr pension and SS.

Health Ins (Medicare does have a premium and is only 80/20 so we will have medigap insurance as well)
Also federal and state taxes.

We estimate about $72K discretionary beyond taxes and health insurance, with no debt and owning
our house.

Nearly bare bones budget is just over $40K/yr discretionary, with another $10K/yr for car replacement and
house maintenance. So our barebones is $50K/yr, not counting medical and taxes.

Bare bones does have some luxuries besides keeping dry, warm and eating.
I include keep cheap cell phone plans, a landline, internet access, Netflix, and we
get to order out every 2 weeks. No cable, just over the air TV.
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jeffyscott
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Re: How much do you spend annually in retirement?

Post by jeffyscott »

bg5 wrote: Tue Apr 06, 2021 1:10 pmMy gut tells me that $50,000 annually would be living "high on the hog" assuming all debts are paid off.
It is for us, but then we don't really have a taste for luxuries or even eating in restaurants. So while it's where we want to be on the hog, it's not really high. We also are currently not paying any health insurance premiums for our coverage under an HDHP.

Excluding income taxes (but including property tax), spent under $18K last year. About another $14K spent on income taxes, but about 70% of that was taxes paid on Roth conversions. We did spend about $45K, again excluding income taxes in 2019, but about $25K of that was for a new car.
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rich126
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Re: How much do you spend annually in retirement?

Post by rich126 »

bg5 wrote: Tue Apr 06, 2021 1:10 pm I know that there are alot of variables such as cost of living but I am curious what people spend annually in retirement.

My gut tells me that $50,000 annually would be living "high on the hog" assuming all debts are paid off.

If anyone is willing to share I think it would be interesting.

Thanks,

BG5
A lot of high spenders around here but for a couple with no debts or severe medical issues,$3-4K is probably enough. Maybe some extra money for the occasional big trip or medical issue. I will have more but I recently cut my hours to 3 days a week and with the paycut to go with that, while also maintaining my previous savings to the 401K and the HSA, I'm taking home a lot less but w/o any debt, I haven't had any issues.

It is actually a good experiment for me since I've never been one to use a budget. A lot of people have things they consider essential expenses but really aren't essentially. If they can afford it fine but for many they aren't needed. I recall an ex-coworker talking about how their son needs a 4 bedroom 2 car garage house and I pointed out it isn't a "need" but a "want". People often have a lot of lifestyle creep that isn't necessary but is ok if you can afford it.
McDougal
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Re: How much do you spend annually in retirement?

Post by McDougal »

bg5 wrote: Tue Apr 06, 2021 1:10 pm I know that there are alot of variables such as cost of living but I am curious what people spend annually in retirement.

My gut tells me that $50,000 annually would be living "high on the hog" assuming all debts are paid off.

If anyone is willing to share I think it would be interesting.

Thanks,

BG5
I am retiring very soon. I looked at what I am spending now in pre-retirement, and started there. How much are you spending now, and adjust for things you no longer need to spend on, and adding additional things you will need to spend on.
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Re: How much do you spend annually in retirement?

Post by JS-Elcano »

bg5 wrote: Tue Apr 06, 2021 1:10 pm I know that there are alot of variables such as cost of living but I am curious what people spend annually in retirement.

My gut tells me that $50,000 annually would be living "high on the hog" assuming all debts are paid off.

If anyone is willing to share I think it would be interesting.

Thanks,

BG5
I am not retired yet, but I know I will be spending a lot more than 50k and I am single with house paid off and no debts.
arf1410
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Re: How much do you spend annually in retirement?

Post by arf1410 »

personally, I think a more usefully twist on this question is: "what % of you're pre-retirement spending are you spending in retirement?"

Not quite retired yet, but I would estimate 110%-125% ... though that could be less if one counted 401k contributions and Social Security taxes as "spending"
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Re: How much do you spend annually in retirement?

Post by LittleMaggieMae »

bg5 wrote: Tue Apr 06, 2021 1:10 pm
My gut tells me that $50,000 annually would be living "high on the hog" assuming all debts are paid off.
It is very variable... is your gut feeling based on some actual expense numbers?

Just to keep my "paid off house and car" - Property Taxes, insurances, stickers/plates for the car and then utilities (electric/gas/water/trash) and then lawn service, internet/cell phone. And a bit for car maintenance and house maintenance will run me about 20K per year. And I haven't put gas in the car or food on the table or paid for any sort of "entertainment" stuff. And then there the health insurance costs - even if you are on Medicare.

I'm not retired yet and I'm single - and 50K is my "minimum" retirement income amount. I'm hoping to have more per year.

Having a place to live with smaller expenses (prop taxes, insurances, utilities, upkeep) can make a big difference.
Last edited by LittleMaggieMae on Tue Apr 06, 2021 3:43 pm, edited 1 time in total.
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Re: How much do you spend annually in retirement?

Post by iamblessed »

bg5 wrote: Tue Apr 06, 2021 1:10 pm I know that there are alot of variables such as cost of living but I am curious what people spend annually in retirement.

My gut tells me that $50,000 annually would be living "high on the hog" assuming all debts are paid off.

If anyone is willing to share I think it would be interesting.

Thanks,

BG5
We live on 22k so 50k is high on the hog here in the Midwest.
arf1410
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Re: How much do you spend annually in retirement?

Post by arf1410 »

iamblessed wrote: Tue Apr 06, 2021 3:42 pm
We live on 22k so 50k is high on the hog here in the Midwest.
help me understand that one... I've been told to budget about $20k per year for health care ...
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midareff
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Re: How much do you spend annually in retirement?

Post by midareff »

I use the VPW drawdown percentage as a guide and then think about differences in abilities to travel (pre-Covid) and then realize the clock is going tic toc and .... restarting travel at the end of this year and expecting to be traveling again internationally in 12 + months from now I am spending all I can within reason. .. lets say $75k for living expenses, $80k for travel and $25K for the IRS and a few K of loose change.
retireIn2020
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Re: How much do you spend annually in retirement?

Post by retireIn2020 »

Midwest here also, property tax on suburban home on an acre is $2k per year, also I guess I'm lucky to have pre-65 subsidized health care from Mega corp.
Retired as of July 2020
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Re: How much do you spend annually in retirement?

Post by iamblessed »

arf1410 wrote: Tue Apr 06, 2021 3:45 pm
iamblessed wrote: Tue Apr 06, 2021 3:42 pm
We live on 22k so 50k is high on the hog here in the Midwest.
help me understand that one... I've been told to budget about $20k per year for health care ...

Free to very low cost on the ACA at a low income. The highest I ever paid was around $150 a month. Last year $63 a month.
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Re: How much do you spend annually in retirement?

Post by scrabbler1 »

I am 57 and had been spending in the $24k-$28k per year since I retired 12 years ago at age 45. But now that I am managing my income better than before, I am back on the ACA subsidy train, a train which running better than ever with the recent Covid Relief Act. In 2020, my expenses dropped to $19k and will probably drop to $18k in 2021.
Rat_Race
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Re: How much do you spend annually in retirement?

Post by Rat_Race »

I don't expect our retirement spending to change much, so $100k/yr would be about right. If the Fed keeps printing, that number will surely go up.
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Re: How much do you spend annually in retirement?

Post by Dottie57 »

I have spent around 48k the last two years. Part of this is healthcare ins which is 18k this year. Medicare starts next March, so my life is more expensive now than next year.
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Re: How much do you spend annually in retirement?

Post by 22twain »

We're retired, late 60s / early 70s, in a small town in the South, with a paid-off house.

Last year we spent a total of about $53K, of which:

$8K income tax (fed + state)
$12K donations (charitable + political)
$7K Medicare premiums
$9K housing-related (utilities, property tax, insurance, maintenance)
$3K food (no eating out because of Covid)
$14K everything else (cars, new computers, hobbies, etc.)

If it hadn't been for Covid, we would have spent more for eating out and travel.

Only one of us is collecting Social Security and taking RMDs from tax-deferred accounts. After the other one starts in a few years, our tax bill will probably increase to about $30K.
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dwickenh
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Re: How much do you spend annually in retirement?

Post by dwickenh »

4% withdrawal along with pension and SS would give me about 120K per year. I am not spending more than 1/3 of that amount at this time. I am dating a great person that I hope to marry someday, so the spending may increase with 2 people in the mix. I have no debt and live in a fairly LCOL area.

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delamer
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Re: How much do you spend annually in retirement?

Post by delamer »

Serious question — how do you define “high on the hog?”

A very nice cruise in Europe for 2 weeks can run $20,000 for a married couple (airfare, cruise fare, excursions, etc.). Is that “high in the hog” even if it’s business class flights, not a luxury line, no fine wine at dinner, no private excursions?
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Re: How much do you spend annually in retirement?

Post by radiowave »

I'm transitioning to full retirement in a few months. The primary changes from expenses are:

- less commute, dry cleaners, eating out for lunch each day, so approximately -500/mo
- increase healthcare insurance from ~250/mo to close to 1000/mo (wife 2 years to go to Medicare, I'm going on an advantage plan) so +750
- paid off house but still need to pay taxes/insurance so 2k/mo down to say 500/mo so -1500
- most everything else should be about the same in the short run

So that would be save 1250/mo or 15K/yr on nominal pre-retirement expenses of 65k so down to about 50k/yr in MCOL area in the West in retirement outside of capital expenses (e.g. new car) and discretionary spending e.g. travel when able to do so in the future.
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Re: How much do you spend annually in retirement?

Post by thursdaysd »

delamer wrote: Tue Apr 06, 2021 5:57 pm Serious question — how do you define “high on the hog?”

A very nice cruise in Europe for 2 weeks can run $20,000 for a married couple (airfare, cruise fare, excursions, etc.). Is that “high in the hog” even if it’s business class flights, not a luxury line, no fine wine at dinner, no private excursions?
That does seem high. My three and a half month trip in 2016, which included an expensive-for-me two week tour of Uzbekistan with a high end American company and a long distance biz class flight I paid cash for instead of my usual FF miles, came in at $22,000, and travel is more expensive for a solo than a couple.
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Re: How much do you spend annually in retirement?

Post by jeffyscott »

thursdaysd wrote: Tue Apr 06, 2021 7:19 pm
delamer wrote: Tue Apr 06, 2021 5:57 pm Serious question — how do you define “high on the hog?”

A very nice cruise in Europe for 2 weeks can run $20,000 for a married couple (airfare, cruise fare, excursions, etc.). Is that “high in the hog” even if it’s business class flights, not a luxury line, no fine wine at dinner, no private excursions?
That does seem high. My three and a half month trip in 2016, which included an expensive-for-me two week tour of Uzbekistan with a high end American company and a long distance biz class flight I paid cash for instead of my usual FF miles, came in at $22,000, and travel is more expensive for a solo than a couple.
$20K in two weeks, that's $1400 per day, I would call that extremely expensive travel. We certainly could afford to spend that much, if we wanted to, but I'm sure it's not the type of trip we'd have any interest in taking. Our style of travel is more in the range of $200 per day or less.
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delamer
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Re: How much do you spend annually in retirement?

Post by delamer »

jeffyscott wrote: Tue Apr 06, 2021 8:12 pm
thursdaysd wrote: Tue Apr 06, 2021 7:19 pm
delamer wrote: Tue Apr 06, 2021 5:57 pm Serious question — how do you define “high on the hog?”

A very nice cruise in Europe for 2 weeks can run $20,000 for a married couple (airfare, cruise fare, excursions, etc.). Is that “high in the hog” even if it’s business class flights, not a luxury line, no fine wine at dinner, no private excursions?
That does seem high. My three and a half month trip in 2016, which included an expensive-for-me two week tour of Uzbekistan with a high end American company and a long distance biz class flight I paid cash for instead of my usual FF miles, came in at $22,000, and travel is more expensive for a solo than a couple.
$20K in two weeks, that's $1400 per day, I would call that extremely expensive travel. We certainly could afford to spend that much, if we wanted to, but I'm sure it's not the type of trip we'd have any interest in taking. Our style of travel is more in the range of $200 per day or less.
My point was that in my eyes the trip that I described (and took) was very comfortable but not luxurious.

And, to me, spending over $50,000/year on someone’s lifestyle isn’t automatically living “high on the hog” as the OP’s gut suggests.

While Bogleheads are more affluent than average, there are obviously are a wide range lifestyles here on the forum and therefore different concepts of the high life.
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Re: How much do you spend annually in retirement?

Post by Small Savanna »

I'm assuming that our living expenses in retirement will be about the same as they are now, plus a little more for travel. Wouldn't that be a reasonable starting point for most people?
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Re: How much do you spend annually in retirement?

Post by bding »

We spend $90k per year not counting housing or healthcare.
delamer
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Re: How much do you spend annually in retirement?

Post by delamer »

Small Savanna wrote: Tue Apr 06, 2021 9:27 pm I'm assuming that our living expenses in retirement will be about the same as they are now, plus a little more for travel. Wouldn't that be a reasonable starting point for most people?
Sure.

But those people who are currently paying a mortgage that will be gone in retirement will want to take that into account.

Same with people who are currently getting low-premium health insurance from their employer but will need to buy their own expensive insurance pre-Medicare.
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Re: How much do you spend annually in retirement?

Post by flyingaway »

22twain wrote: Tue Apr 06, 2021 5:46 pm We're retired, late 60s / early 70s, in a small town in the South, with a paid-off house.

Last year we spent a total of about $53K, of which:

$8K income tax (fed + state)
$12K donations (charitable + political)
$7K Medicare premiums
$9K housing-related (utilities, property tax, insurance, maintenance)
$3K food (no eating out because of Covid)
$14K everything else (cars, new computers, hobbies, etc.)

If it hadn't been for Covid, we would have spent more for eating out and travel.

Only one of us is collecting Social Security and taking RMDs from tax-deferred accounts. After the other one starts in a few years, our tax bill will probably increase to about $30K.
I like this budget. I would like to add $20K for travel and another $20K for entertainment.
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Re: How much do you spend annually in retirement?

Post by Fat Tails »

Silk McCue wrote: Tue Apr 06, 2021 1:50 pm The search bar upper right corner of this page is your friend.

Below is a post from January 2021 with 112 replies.

viewtopic.php?t=335148&start=50

Cheers
+1.

OP, you may want to look at Rick Ferri’s post in the above link. He has a lot of data in this area.

It is interesting. Some forum members pay $50k per year in property taxes alone. Others are comfortable living off of social security plus a little from savings. Some people enjoy being frugal. Some people have a taste for fine wine. To each his own! Your goal should be to have some choices in retirement.

Cheers.
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Katietsu
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Re: How much do you spend annually in retirement?

Post by Katietsu »

22twain wrote: Tue Apr 06, 2021 5:46 pm We're retired, late 60s / early 70s, in a small town in the South, with a paid-off house.

Last year we spent a total of about $53K, of which:
$3K food (no eating out because of Covid)
This is remarkable. Even the USDA “thrifty plan” adds up to over $4500 a year for a married couple age 51-70. What are the key ways that you keep food costs this low?
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CyclingDuo
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Re: How much do you spend annually in retirement?

Post by CyclingDuo »

bg5 wrote: Tue Apr 06, 2021 1:10 pm I know that there are a lot of variables such as cost of living but I am curious what people spend annually in retirement.

My gut tells me that $50,000 annually would be living "high on the hog" assuming all debts are paid off.

If anyone is willing to share I think it would be interesting.

Thanks,

BG5
You are not kidding when you say there are a lot of variables! Is $136 per day living high on the hog? Maybe for some, but probably not for many others.

BLS data shows us the average per household (look up what BLS calls a household):

Image

And breaks it down per item spend category:

Image

Here is an older article from 2016 that focuses on the household spending of Americans age 55 and older (you would need to translate the numbers into 2021 dollars):

https://www.bls.gov/opub/btn/volume-5/s ... ricans.htm

Speaking of variables regarding how much portfolio size (and other income streams) to cover one's daily/annual spend - you could probably find answers here at BH that cover each line in this table as well as some lines above the table:

Image

CyclingDuo
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Wanderingwheelz
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Re: How much do you spend annually in retirement?

Post by Wanderingwheelz »

Most of us can have a pretty lavish retirement with $70,000-$120,000 depending on what part of the country we live in as long as we are debt free.
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Re: How much do you spend annually in retirement?

Post by thursdaysd »

Katietsu wrote: Wed Apr 07, 2021 8:31 am
22twain wrote: Tue Apr 06, 2021 5:46 pm We're retired, late 60s / early 70s, in a small town in the South, with a paid-off house.

Last year we spent a total of about $53K, of which:
$3K food (no eating out because of Covid)
This is remarkable. Even the USDA “thrifty plan” adds up to over $4500 a year for a married couple age 51-70. What are the key ways that you keep food costs this low?
Agreed. I spent nearly that much on "eating out" last year, and I'm single. "Eating out" being curb-side pickup from local restaurants, with higher-than-usual tips. My grocery bill was much higher, but that included more than food.

It really demonstrates that there is a huge variation, and the OP needs to start with his current expenditures and not worry too much about other people.
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Sheepdog
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Re: How much do you spend annually in retirement?

Post by Sheepdog »

Something different.....
22 years retired
First 5 years (1999-2003) $57,850 per year average spending
Last 5 years (2016-2020) $72,091 per year average

What did we spend on certain categories last 2 years (2020-21) $86,320 per year

(top 5 categories) average per year, not including a new auto purchase in 2019 ($25,172)
Medical $16648 (not including medicare premiums from Social Security payments)
Income taxes $8199
Gifts to family $6382
Charities $6490
Groceries $6480

Old age spending is very different.

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mikejuss
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Re: How much do you spend annually in retirement?

Post by mikejuss »

An adjacent question to the one that started this thread: how did you calculate--preretirement--what your spending in retirement would look like?
investnoob
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Re: How much do you spend annually in retirement?

Post by investnoob »

The answers lead me to believe that any retirement spending over what I spend is "high on the hog." Anything less than that isn't. Interesting.
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David Jay
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Re: How much do you spend annually in retirement?

Post by David Jay »

investnoob wrote: Wed Apr 07, 2021 10:18 am The answers lead me to believe that any retirement spending over what I spend is "high on the hog." Anything less than that isn't. Interesting.
Yup. It is mostly self-referential.
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22twain
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Re: How much do you spend annually in retirement?

Post by 22twain »

Katietsu wrote: Wed Apr 07, 2021 8:31 am
22twain wrote: Tue Apr 06, 2021 5:46 pm We're retired, late 60s / early 70s, in a small town in the South, with a paid-off house.

Last year we spent a total of about $53K, of which:
$3K food (no eating out because of Covid)
This is remarkable. Even the USDA “thrifty plan” adds up to over $4500 a year for a married couple age 51-70. What are the key ways that you keep food costs this low?
We buy most of our groceries at Aldi, and we avoid expensive cuts of meat.

My $3K figure was a "guesstimate" based on our making usually two trips to Aldi per month, with bills in the $100-$150 range. Just now I looked at the most recent six months of credit card statements, and got a total of almost exactly $1200 in groceries, including a couple of visits to non-Aldi supermarkets.

The overall total of $53K is obviously subject to major fluctuation because of one-off expenses which vary from year to year. Last year, our only big one-off purchase was $4K for new computers for both of us. This year so far, we've paid $8K for a new roof.
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GoneCamping
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Re: How much do you spend annually in retirement?

Post by GoneCamping »

It's all relative and relatively speaking it seems like many here don't know how extremely fortunate they are. $100,000 annual income, $20,000 cruises are not high on the hog? Relative to what? The very wealthiest perhaps but here in the U.S. and even more so the world as a whole, definitely not. $100k puts one in the top 10% in the U.S. That's pretty high on the hog in my eyes but that phrase may have distinctly different meanings to different people.
rixer
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Re: How much do you spend annually in retirement?

Post by rixer »

I live in California, house is paid for and we have low prop taxes. SS and draw from portfolio is 65k. We do fine, take trips ( in non covid times) and usually don't spend it all. We've always been frugal but we spend more now than when we were working and saving.
MathWizard
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Re: How much do you spend annually in retirement?

Post by MathWizard »

arf1410 wrote: Tue Apr 06, 2021 3:45 pm
iamblessed wrote: Tue Apr 06, 2021 3:42 pm
We live on 22k so 50k is high on the hog here in the Midwest.
help me understand that one... I've been told to budget about $20k per year for health care ...
Pre-Medicare is expensive.

The bulk of your retirement should be after 65.
For MFJ, the cost per person for Medicare part B is $148.50/month each, so $3564 for a couple.
This is an 80/20 plan, and does not cover things like dental, eyeglasses, hearing aids.
For myself and my wife, adding a (very nice) medigap plan that also covers prescriptions brings us to
a bit over $11K/yr. I also assume 2% inflation in health care costs over standard inflation,
but that still averages less than $20K/yr. Medicare Advantage plans would cost even less.
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