How To Lower Retirement Expenses

[naturewalker420]

Hey Bogleheads out there. Any tips to minimize expenses in retirement. The reality for most Americans is that they will need to cut expenses in retirement to meet their new income.
Pay off mortgage
No credit card debt
No car note
Cook food at home vs going out to eat.

What are some others? I cant imagine trying to retire on 2k/3k a month. However people do it. Curious if anyone has any other ideas. Thanks!

[jebmke]

Whatever works before retirement (reducing) works after retirement. If eating out doesn't make sense in retirement it probably doesn't make sense before one retires. Same for credit card debt and a number of other things.

[runner3081]

-Drop streaming/subscription services (Prime, Costco, Disney, Hulu, etc)
-Go with an MVNO cell plan (for example, we have 3-lines and pay $17 per month, total).
-Drink water, no soda, no alcohol, etc.
-Shop ugly produce section
-Get rid of a second car
-Move to a smaller house

We are a family of three who has expenses <$30K per year while working.

[chassis]

Sell the house and rent
Cancel cable
Exercise minimum 3x per week

[dbr]

You could start by tabulating what your spending is now.

[Colorado Guy]

Prepper Princess, before she became an internet star, embraced a wide range of money saving actions (that is, spending much less than normal Americans), and was able to both thrive and save money on minimal income. "Thrive" might be the wrong word choice here, but she did make it her mission to cut expenses to the bare bone.

For insights on what it takes to get to that level of cutting expenses, investigating Prepper Princess actions would be a reasonable place to start.

https://www.amazon.com/Living-Almost-No ... B092G2L1JX

[stan1]

There are millions of Americans today who live on Social Security who do things like this:
- Limited vacations
- Limit driving to lower fuel costs, or no car
- Live in a mobile home in a low cost area
- Repair and maintain home yourself, or put off any work letting house fall into disrepair
- Live in senior housing, possibly subsidized
- Eligible for senior/low income discounts on utilities
- Low cost hobbies
- No pets
- Friends and family help out
- Put off dental, vision, and other non-emergency care

Many of us would keep working if we can, or get a part time job to bring in some additional income. Many of our parents or grandparents did some of the above, and we'd prefer not to.

[nisiprius]

As before retirement, I would start by looking carefully at all recurring expenses. It is human nature to overestimate the impact of occasional large expenses and underestimate the impact of small recurring expenses.

But the big problem for us is that as we age, we want more and more of what would be considered "luxury" for younger people. For example, our last new-car purchase (in 2016) replaced a 100%-functional no-problems car, just because we "needed" or wanted the modern package of driver-assist and safety-enhancement features.

[sailaway]

For those who choose their retirement date, many "cut expenses" by waiting until.the kids are launched and the house paid off.

Other than that, if it looks like you will need to cut existing retirement, I would start cutting as soon as I made the realization.

A frugal/ no spend month can be a great way to start. Cut to the bare bones to evaluate what is important to you versus what you have been spending out of habit. However, for big cuts, you are going to have to look at housing and transportation, maybe even diet.

[Sandtrap]

Hey Bogleheads out there. Any tips to minimize expenses in retirement. The reality for most Americans is that they will need to cut expenses in retirement to meet their new income.
Pay off mortgage
No credit card debt
No car note
Cook food at home vs going out to eat.

What are some others? I cant imagine trying to retire on 2k/3k a month. However people do it. Curious if anyone has any other ideas. Thanks!

Many many "people" live (survive) above the poverty level with no gov't subsidies, EBT food stamp aids, etc.
The word "retire", especially as commonly used on this forum, is a "concept" for "other people".
There are no "expenses" to cut.

Examples:
1
Rent a basic apartment with or without parking (street parking) with a view outside the window of the parking lot 8 feet away.
Shop at Savers and the Thrift store.
Collect minimal SS.
Work part time, or full time, as they are able to.
Are on Medicaid or other equiv.
Sometimes/often, "people" live in a multi-generational household. IE: Son works, lives in a bedroom, shares the rent with parents. Son and girlfriend have a child. Live in one bedroom. Share the rent. Parents help take care of child.

2
If the parents have a modest home in a working neighborhood. Then there's more room for more generations to help each other. It's common and often cultural value based as well (Island or Asian, etc) . In Hawaii, it is called, "ohana". The family unit is everyone per se. "Kupuna" are elders. "Keiki" are children. Financial burdens, if not irresponsible, are shared. IE: "what's mine" and "what's yours" is blurred and not as hardened as sometimes seen in Western culture (though this is personal and different for everyone).

3 (extension of above that perpetuates)
Parents retired with modest retirement income. Home is mortgage free, bought in the 60/70's. An old home with multiple additions. "Adult Children"(modern word) and sometimes families, move in and out as their life financials have a need. The "safety net" is shared. Children help the parents financially, etc, home care if health issues. Parents help the children financially as needed, or watch the todler grandchildren as needed. "Adult children" are able to save for thier own homes this way. Some move away to LCOL areas , etc.
The neighborhood is similar. This is a "village culture" per se (anthro/social psy).

to op:
In retirement and other financials, situations are unique to each person and one may not apply to another to be useful.

I cant imagine trying to retire on 2k/3k a month. However people do it[

Context matters: Those that have experienced poverty and low income might find "retiring" on 2-3k/month a "gold mine". And, in much of the world, it is a windfall.

** (per topic) Cutting expenses in retirement: differentiate between "needs" vs "wants", "gotta haves, wanna haves, and have to haves".

j
(dis laimer): Zillions of ways to things. This is just one perspective to help.
Examples are from real life. Keeping in mind: Financial and life Comparisons are odious. There is a natural tendency, "conformity bias", "cognitive bias", to "other people" within the context of one's own; financial and social and personal and cultural perspectives. (Margaret Mead: Cultural Anthro.101).

[naturewalker420]

-Drop streaming/subscription services (Prime, Costco, Disney, Hulu, etc)
-Go with an MVNO cell plan (for example, we have 3-lines and pay $17 per month, total).
-Drink water, no soda, no alcohol, etc.
-Shop ugly produce section
-Get rid of a second car
-Move to a smaller house

We are a family of three who has expenses <$30K per year while working.

Thats impressive. I thought metro was great I have 4 lines for $100 family plan.

[delamer]

Most people who retire in $2000 to $3000 per month lived modestly during their working years. But millions of people do it.

In my circle of family/friends/colleagues, I know two couples that significantly reduced expenses by selling their homes in a HCOL area.

One couple bought a home outright in a MCOL area with their equity in their previous home. So they still have some home ownership costs (utilities, insurance, maintenance), but no mortgage.

The other couple has been renting an apartment in a LCOL-to-MCOL area for the last few years. The plan is to eventually buy a home, but I think they used a lot of their previous equity to get out of debt. And the increase in mortgage rates probably hasn’t helped.

[Johm221122]

Hey Bogleheads out there. Any tips to minimize expenses in retirement. The reality for most Americans is that they will need to cut expenses in retirement to meet their new income.
Pay off mortgage
No credit card debt
No car note
Cook food at home vs going out to eat.

What are some others? I cant imagine trying to retire on 2k/3k a month. However people do it. Curious if anyone has any other ideas. Thanks!

If I stay in my current location when I retire I could easily live on that. My current expenses are
Rent $499
Utility bill $75
Walmart/ food $400
Phone $50
Miscellaneous $200

Add in when I retire
Health insurance $200(ACA/ Medicare advantage)
Taxes on $300(10% of $3,000)

That would leave about $1,300(0f $3,000 a month) for fun or any medical/dental

Just as a side note I ride a bike for my transportation

[texas lawdog]

This is half the battle that most people don't realize until late in life and only focus on what they make, not realizing that lifestyle creep is eating up most of their gains in life.

I'd research budgeting software that can easily track and categorize spending. Once you have a few months, take a hard look at each category and ask yourself how and where you can cut back. Track any improvements and try to build upon those over time - inflation is a constant battle that must be kept in check.

[TerryR]

In my experience, having been retired 25 years, the best way to keep retirement expenses down is to keep your standard of living under control while working. Live in a smaller house then your contemporaries, buy cars you can afford and keep them longer than others, avoid spending that stretch your budget, etc. This has a double effect: you can save more for retirement, and your expectations and expenses in retirement are reduced.

[RetiredCSProf]

I retired in 2012 and have had a couple of big expenses in retirement that I did not anticipate:

1) Major home remodel -- I had planned to remodel just the kitchen -- but the remodel seemed to spread throughout the house -- walls moved, new roof, new flooring, new windows and doors, new furnace, new landscaping. I regret that I didn't sell and move to a more expensive home, as there are some features of my home that cannot be altered to adjust to my current needs.

2) Increase in effective tax rate -- when the tax laws changed in 2017, my taxes increased (SALT affected deductions) and I realized that I needed to convert more to Roth -- loss of the stretch IRA for my beneficiary.

3) New car -- I thought my Lexus would last forever -- but after 20 years, I needed a replacement.

4) Pet expenses -- like my car, my pets aged and needed expensive trips to vet specialists

5) Parenting -- I seemed to have failed to launch my young adult son -- I somehow thought that, unlike my aging pets, he would be off my "payroll" by now -- but I do enjoy having him continue to live with me for the time being, anyway.

6) Hobbies -- Every hobby that I have chosen during my retirement has been more expensive than I imagined. I rented an oboe a couple months ago (never played a double-reed instrument before) -- rental, lessons, and reeds will cost me over $200 per month

[arcticpineapplecorp.]

Hey Bogleheads out there. Any tips to minimize expenses in retirement. The reality for most Americans is that they will need to cut expenses in retirement to meet their new income.

new income? don't stop working then you don't need to make any cuts!

i say this only tongue in cheek because I've known people who didn't save at all because they never planned to stop working...and then for a variety of reasons, they had to stop working.

but i just read a new book at the library Work, Retire, Repeat: The Uncertainty of Retirement in the New Economy by Teresa Ghilarducci where she goes into a lot of the stats about people having to work in retirement to scrape by for a variety of reasons. She gives some policy prescriptions, but it's a sobering look at the real retirement crisis in America. I have friends retiring this month who don't know anything about money and economics and have nothing saved for retirement or in savings and already have two mortgages (the most recent is a variable) and a car loan. I don't know how they're gonna make it. I think their plan is to hope to sell their house for more than the mortgage (rely on rising prices) to give them a safety net, but because they're not money smart, they'll likely blow it anyway and have to deal with rising rents. I've seen this happen so many times it's not funny.

sorry, know that didn't really help, but i saw the thread is all about cutting expenses, which is really only half the equation. People do/can/might need to work (increase revenue) if they can't cut their way to a balanced budget.

[tibbitts]

Hey Bogleheads out there. Any tips to minimize expenses in retirement. The reality for most Americans is that they will need to cut expenses in retirement to meet their new income.
Pay off mortgage
No credit card debt
No car note
Cook food at home vs going out to eat.

What are some others? I cant imagine trying to retire on 2k/3k a month. However people do it. Curious if anyone has any other ideas. Thanks!

I don't think many Bogleheads do that, but obviously some "people" do. Some of us pay more than that just for taxes (and some years taxes can be the largest expense.)

[Beensabu]

Downsize. No house. No car. No internet/cable. No TV. Rent 1 bedroom apartment with working heat/AC in a walkable L/MCOL town or near bus stop. Minimal and light furniture/stuff. Houseplants instead of garden. Art on the walls in lieu of a view. Participate in free/low cost activities. Talk to people. Make friends with the neighborhood cat. Read. Write. Draw/paint. Listen to music. Make music. Cook. Drink water. Don't smoke.

[celia]

You could start by tabulating what your spending is now.

This is an excellent idea because just the act of accounting for every dollar coming in and tracking where it all goes makes you more aware of where the "leaks" are.

Don't forget to track taxes and other withholdings that are sent in for you. Learn to use spreadsheets, at least how to enter the data and add up all the amounts in a row or table. (I use LibreOffice which you can download for free.)

https://en.m.wikipedia.org/wiki/LibreOffice


I also suggest you visit your local senior senior (if you consider yourself a senior). They usually have social, educational, and exercise activities and sometimes a social worker comes by to explain benefits you might be eligible for. Ours has an area where you can leave/take books and magazines, low cost lunches, free tax preparation (Feb to April), referrals to social services, a pool table, large Screen TV, and a few classes.

[goblue100]

Curious if anyone has any other ideas. Thanks!

Smaller house, less taxes, insurance, utilities.

[celia]

Hey Bogleheads out there. Any tips to minimize expenses in retirement. The reality for most Americans is that they will need to cut expenses in retirement to meet their new income.
Pay off mortgage
No credit card debt
No car note
Cook food at home vs going out to eat.

What are some others? I cant imagine trying to retire on 2k/3k a month. However people do it. Curious if anyone has any other ideas. Thanks!

I don't think many Bogleheads do that, but obviously some "people" do. Some of us pay more than that just for taxes (and some years taxes can be the largest expense.)

We do all of that (and always have) even though we have a large house, 2 cars, have pensions and SS and like to travel.

We had a mortgage but every time we re-financed, we made sure the new loan ended at the original 30-year ending date. I don't understand how someone retiring can start a 30-year loan and expect to pay it off. That would be a big burden in retirement for me.

[Bill 5431]

Use a spreadsheet to track all your expenses, ideally for at least 3 months. This shows you where the money is going. Then ask yourself if you can cut each area? Some you can, some you cannot. You can make it a game to a point, by trying your very hardest to reduce spending in each of those categories.

[doobiedoo]

Use a spreadsheet to track all your expenses, ideally for at least 3 months. This shows you where the money is going. Then ask yourself if you can cut each area? Some you can, some you cannot. You can make it a game to a point, by trying your very hardest to reduce spending in each of those categories.

+1

[doobiedoo]

Curious if anyone has any other ideas. Thanks!

Smaller house, less taxes, insurance, utilities.

I have several friends who moved from southern CA to lower cost of living areas, e.g. Arizona, Colorado, Las Vegas.

[heyyou]

I have several friends who moved from southern CA to lower cost of living areas, e.g. Arizona, Colorado, Las Vegas.

Consider moving even further, internationally.
The country of Panama uses US currency but mints their own coins, so the $5 fee ATMs there dispense US currency.
The cost of living, away from the capital city, will be cheaper than the same lifestyle in the USA. Due to Panama's near equatorial location, the daily temperatures are near the same all year but with daily afternoon rain in the wet season. You can go into the mountains to where the afternoon temps are not too hot, nor too chilled in the night, thus with low to no costs for heating or cooling, year 'round. Those locations are near the agricultural areas, so fruits and vegetables purchased in-season, from the growers, are inexpensive.

Many posters here may have taken a few semesters of Spanish courses since it is an easier to learn foreign language. You can show a translation on your phone to whoever you are trying to speak with.

Panama is not for someone who has very little financial resources. It is best for those who just don't have enough retirement income to live comfortably in the US.
Panama Relocation Tours is a business catering to those customers, but they do publish extensive Panama cost info in their dozens of free YouTube videos at https://panamarelocationtours.com/worri ... tirement.
I went on one of their tours in 2019.

I'm intimidated by long term care costs if I moved to Hawaii, but I can afford to live in similar weather in Panama which is south of the Caribbean's hurricane belt. See how Panama fits so well, in so many ways, with the exception of the different language.

[ReadyOrNot]

I got a "trial" retirement during a lay-off in 2009. My costs went way down -- I didn't bother to track them. I think I was spending much less than the unemployment payments.
My main spending was taxes. You can largely control your taxes when you no longer have earned income, by controlling your income.
My state income tax went from thousands to a couple hundred dollars. In some states seniors get a break on property taxes.
My daily commute dropped an order of magnitude. Lower gas, maintenance, and insurance costs.
I had time to go to reasonably priced stores and no reason to go to expensive convenient ones.
I had time to shop for good deals, and no reason to rush to buy anything.
No need for work clothes.
I had time to go to the library for free amusement.
Medicare costs about as much as pre-ACA insurance for my younger self 14 years ago, but the costs seem to have stabilized.
I moved to a small condo. I guess the Home Owners Association fees are more than I used to pay on a house ($0). But I no longer pay for water, sewer, or trash. HOA is responsible for exterior maintenance. Condo insurance is probably less than house insurance would be. Heating/cooling cheaper than for a bigger house.

What was needed while working may not be still needed in retirement.

[Outer Marker]

Curious if anyone has any other ideas. Thanks!

Keep working. I want to live well in retirement.

[cs412a]

I cant imagine trying to retire on 2k/3k a month.

As someone who is experiencing a very comfortable retirement spending ~$36,000/year, I have to smile at this comment. Oh, the horror!

I should add that I'm single and live in an area where housing costs are very reasonable. But I'm not eating cat food, and I splurge on coffee and produce. If I want something, I buy it - e.g., recently, a new mattress w/adjustable bed frame. However, I've downsized considerably so I generally spend to replace items rather than accumulating new "stuff". I am also front-loading my retirement for travel, and can spend ~$3000 within the $36,000/year outlay. However, travel costs depend on where I want to go. This past year I spent < $3000 on my solar eclipse trip to TX, but some years I spend up to $10,000 (so more like $40,000+/year).

I am currently making plans to deal with later life issues, and since my portfolio has continued to grow over time, I suspect I will be able to afford those costs as well.

[AlohaBill]

From 2010 to 2013 we averaged $45,000 each year in expenses, the range was $33,000 to $55,000. In retirement we have been spending around $55,000. The range has been about$50,000 to $75,000 (new car). Most of the increase in spending has been paying for ROTH conversions. We could spend up to $160,000 per year, but what would we spend it on. Another new car? Travel? We traveled around the world for 16 years. A new house? The one we have is huge at 1500sf with just the two of us. It was bought and paid for in 1989 -1990. If you work hard and long enough, you will save enough to not have to lower expenses.

[Wannaretireearly]

Downsize. No house. No car. No internet/cable. No TV. Rent 1 bedroom apartment with working heat/AC in a walkable L/MCOL town or near bus stop. Minimal and light furniture/stuff. Houseplants instead of garden. Art on the walls in lieu of a view. Participate in free/low cost activities. Talk to people. Make friends with the neighborhood cat. Read. Write. Draw/paint. Listen to music. Make music. Cook. Drink water. Don't smoke.

I like this post and thread in general
The main one I can think of is going down to one car. That should save thousands a year.

[Sandtrap]

Hey Bogleheads out there. Any tips to minimize expenses in retirement. The reality for most Americans is that they will need to cut expenses in retirement to meet their new income.

new income? don't stop working then you don't need to make any cuts!

i say this only tongue in cheek because I've known people who didn't save at all because they never planned to stop working...and then for a variety of reasons, they had to stop working.

but i just read a new book at the library Work, Retire, Repeat: The Uncertainty of Retirement in the New Economy by Teresa Ghilarducci where she goes into a lot of the stats about people having to work in retirement to scrape by for a variety of reasons. She gives some policy prescriptions, but it's a sobering look at the real retirement crisis in America. I have friends retiring this month who don't know anything about money and economics and have nothing saved for retirement or in savings and already have two mortgages (the most recent is a variable) and a car loan. I don't know how they're gonna make it. I think their plan is to hope to sell their house for more than the mortgage (rely on rising prices) to give them a safety net, but because they're not money smart, they'll likely blow it anyway and have to deal with rising rents. I've seen this happen so many times it's not funny.

sorry, know that didn't really help, but i saw the thread is all about cutting expenses, which is really only half the equation. People do/can/might need to work (increase revenue) if they can't cut their way to a balanced budget.

great points
well said
Financial illiteracy is pervasive and entrenched in society from an early age in a culture focused on consumerism and materialism.

Having self-managed 100s of rental units in apartment buildings over many decades, I was more than familiar with the lives of tenants, watched their children grow up, and most, with financial struggles that never ended.

How can any person or household lower expenses when living paycheck to paycheck with no extra hours 24/7 to work?
Where not working and "retired" is only a dream that other people have and do?

j

[swr]

My DW and I are into our first year of retirement; a few things we do to save $ include:
- grow a veggie garden; summer squash, tomatoes, beans, cukes, peppers are fairly easy to grow and give good yields. Save more $ by starting plants from seed.
- we put in a small back yard clothesline and save some energy $
- find good weekly restaurant deals and limit your dining out; taco Tuesday is a favorite with one local restaurant serving $4 shrimp or haddock tacos- 2 each fill us up with a $3.99 22oz Coors lite makes it a cheap date.
- hunt out a few local gas stations that have cheaper fuel; one local station has $2.97 regular gas with .20 off for bank a/c direct pay. This is about .30 to .40 off the average gas station price in the seacoast of NH area although I think BJ's is often the cheapest if you are a member
- look for travel sites that offer great deals; www.secretflying.com is great if you have flexibility, Travelzoo top 20 deals can be good, Momondo for flight search engine and Hotwire for accommodation.
- we try to shop at stores that give us value for our money; Marshalls, Market Basket and thrift stores are a few we use. Online is mostly Amazon.
- we do splurge; Nespresso coffee is a must, our new grandbaby and dare I say it my wife's hairdresser bill evert 6 weeks. I do have my wife cut my hair which slightly reduces our family hair grooming expense. Our old dog is spoilt; good food and treats, PT once a month.

[cs412a]

Downsize. No house. No car. No internet/cable. No TV. Rent 1 bedroom apartment with working heat/AC in a walkable L/MCOL town or near bus stop. Minimal and light furniture/stuff. Houseplants instead of garden. Art on the walls in lieu of a view. Participate in free/low cost activities. Talk to people. Make friends with the neighborhood cat. Read. Write. Draw/paint. Listen to music. Make music. Cook. Drink water. Don't smoke.

I own a condo, I own a car, I have internet. I travel. I have a small garden on my terrace: native plants (bumblebees, honeybees & hummingbirds visit), tomatoes & (just planted) spinach. I look out my window & see trees. I am a member of the local astronomical society, the local museum and wildlife park (among other organizations) and regularly donate. I am not squeaking by. Jeez.

[Wannaretireearly]

It’s just eye opening when you look at the general public, and realize how lucky we are to be in the situations we’re in to discuss a topic like this.

Everyone here is in the top 10% imo (income or net worth).
Living in bubbles on the west/east coasts masks a lot of hard realities with how the majority live.

[THY4373]

I will echo the same point a few others have made which is to track your expenses currently. This will one allow you to see where you might be able to make cuts now to save more money and it gives you much better data on what your retirement expenses might look like. There are lots of good ideas here another one I'll add is if you are going to stay in your current house then I'd make what capital improvements are needed before you retire. I bought my retirement house 18 months ago. It needed some work (reflected in the purchase price) and I have been getting that done while working in anticipation of my retirement. I am mostly done now with the things I need to do (new roof, two new HVAC systems, some repointing of mortar between bricks, etc) and if I can tolerate a few more years of work I may move to some nice to do things (minor update to kitchen).

[bloom2708]

1. Everything house related
2. Everything insurance related
3. Everything car related

Those 3 are the key and they can cross over each other.

[oldfatguy]

Everyone here is in the top 10% imo (income or net worth).

Not even close.

[oldfatguy]

Hey Bogleheads out there. Any tips to minimize expenses in retirement. The reality for most Americans is that they will need to cut expenses in retirement to meet their new income.
Pay off mortgage
No credit card debt
No car note
Cook food at home vs going out to eat.

What are some others? I cant imagine trying to retire on 2k/3k a month. However people do it. Curious if anyone has any other ideas. Thanks!

Drive a lot less (no daily commute), so spend less on gas and lower your car insurance
Stop saving for retirement

[Johm221122]

It’s just eye opening when you look at the general public, and realize how lucky we are to be in the situations we’re in to discuss a topic like this.

Everyone here is in the top 10% imo (income or net worth).
Living in bubbles on the west/east coasts masks a lot of hard realities with how the majority live.

I made 65k last year but I am probably in top 75% of net worth for my age

But I'm only in top 75% of net worth because I have saved/ invested since 1997. I believe in save first and spend the rest

[ScubaHogg]

People raise kids on $36k/year. One could certainly retire in that

I wouldn’t want to, but it happens at scale everyday and those people aren’t eating cat food in a box somewhere

[Sandtrap]

Moving from an UHCOL area to a M/LCOL area made a profound financial impact when I early retired at 58.
In doing this one thing a portfolio can change from 25X to 60X.

j

[Wannaretireearly]

It’s just eye opening when you look at the general public, and realize how lucky we are to be in the situations we’re in to discuss a topic like this.

Everyone here is in the top 10% imo (income or net worth).
Living in bubbles on the west/east coasts masks a lot of hard realities with how the majority live.

I made 65k last year but I am probably in top 75% of net worth for my age

But I'm only in top 75% of net worth because I have saved/ invested since 1997. I believe in save first and spend the rest

I stand corrected. Congratulations on your success!

[Dregob]

Hey Bogleheads out there. Any tips to minimize expenses in retirement. The reality for most Americans is that they will need to cut expenses in retirement to meet their new income.
Pay off mortgage
No credit card debt
No car note
Cook food at home vs going out to eat.

What are some others? I cant imagine trying to retire on 2k/3k a month. However people do it. Curious if anyone has any other ideas. Thanks!

I wonder if your premise is true for Bogleheads? I agree in general it may be true but for this subset?

[tibbitts]

Hey Bogleheads out there. Any tips to minimize expenses in retirement. The reality for most Americans is that they will need to cut expenses in retirement to meet their new income.
Pay off mortgage
No credit card debt
No car note
Cook food at home vs going out to eat.

What are some others? I cant imagine trying to retire on 2k/3k a month. However people do it. Curious if anyone has any other ideas. Thanks!

I don't think many Bogleheads do that, but obviously some "people" do. Some of us pay more than that just for taxes (and some years taxes can be the largest expense.)

We do all of that (and always have) even though we have a large house, 2 cars, have pensions and SS and like to travel.

We had a mortgage but every time we re-financed, we made sure the new loan ended at the original 30-year ending date. I don't understand how someone retiring can start a 30-year loan and expect to pay it off. That would be a big burden in retirement for me.

You're saying you "do all of that", on $2k-$3k/mo? Or do you mean you do the items in the list, regardless of your finances? For me that retirement spending range is roughly taken up by taxes alone, even though I'm confident my lifetime earnings were well below average for Bogleheads.

[Dregob]

Downsize. No house. No car. No internet/cable. No TV. Rent 1 bedroom apartment with working heat/AC in a walkable L/MCOL town or near bus stop. Minimal and light furniture/stuff. Houseplants instead of garden. Art on the walls in lieu of a view. Participate in free/low cost activities. Talk to people. Make friends with the neighborhood cat. Read. Write. Draw/paint. Listen to music. Make music. Cook. Drink water. Don't smoke.

Or join a monastery.

[Beensabu]

Downsize. No house. No car. No internet/cable. No TV. Rent 1 bedroom apartment with working heat/AC in a walkable L/MCOL town or near bus stop. Minimal and light furniture/stuff. Houseplants instead of garden. Art on the walls in lieu of a view. Participate in free/low cost activities. Talk to people. Make friends with the neighborhood cat. Read. Write. Draw/paint. Listen to music. Make music. Cook. Drink water. Don't smoke.

I own a condo, I own a car, I have internet. I travel. I have a small garden on my terrace: native plants (bumblebees, honeybees & hummingbirds visit), tomatoes & (just planted) spinach. I look out my window & see trees. I am a member of the local astronomical society, the local museum and wildlife park (among other organizations) and regularly donate. I am not squeaking by. Jeez.

What's your monthly spend?

[delamer]

Downsize. No house. No car. No internet/cable. No TV. Rent 1 bedroom apartment with working heat/AC in a walkable L/MCOL town or near bus stop. Minimal and light furniture/stuff. Houseplants instead of garden. Art on the walls in lieu of a view. Participate in free/low cost activities. Talk to people. Make friends with the neighborhood cat. Read. Write. Draw/paint. Listen to music. Make music. Cook. Drink water. Don't smoke.

I like this post and thread in general
The main one I can think of is going down to one car. That should save thousands a year.

My parents did this, and I never really understood why (other than them being frugal-bordering-on-cheap about some things). If you live in a mostly non-walkable area, it can be an inconvenience for 2 drivers to own just one vehicle.

Assuming the same number of miles driven regardless, the cost of a second paid-off car is basically the insurance. If an expensive repair situation arises, then you can sell.

[Wannaretireearly]

Downsize. No house. No car. No internet/cable. No TV. Rent 1 bedroom apartment with working heat/AC in a walkable L/MCOL town or near bus stop. Minimal and light furniture/stuff. Houseplants instead of garden. Art on the walls in lieu of a view. Participate in free/low cost activities. Talk to people. Make friends with the neighborhood cat. Read. Write. Draw/paint. Listen to music. Make music. Cook. Drink water. Don't smoke.

I like this post and thread in general
The main one I can think of is going down to one car. That should save thousands a year.

My parents did this, and I never really understood why (other than them being frugal-bordering-on-cheap about some things). If you live in a mostly non-walkable area, it can be an inconvenience for 2 drivers to own just one vehicle.

Assuming the same number of miles driven regardless, the cost of a second paid-off car is basically the insurance. If an expensive repair situation arises, then you can sell.

It’s more about need imo. Once not working and not doing school runs we could probably get by with one car. There are so many ride share options now.

[Beensabu]

Downsize. No house. No car. No internet/cable. No TV. Rent 1 bedroom apartment with working heat/AC in a walkable L/MCOL town or near bus stop. Minimal and light furniture/stuff. Houseplants instead of garden. Art on the walls in lieu of a view. Participate in free/low cost activities. Talk to people. Make friends with the neighborhood cat. Read. Write. Draw/paint. Listen to music. Make music. Cook. Drink water. Don't smoke.

Or join a monastery.

OP asked how to lower retirement expenses. Don't spend money on things you don't actually need by putting yourself in a position not to need those things. Such as situating yourself in a walkable area.

Actual needs: food, water, air, shelter, medical care, interaction, and purpose.

Housing is the biggest expense. When you don't need a job anymore, you have the ability to go where it doesn't cost as much.

It is better to have less stuff and maintenance responsibilities as mobility becomes an issue.

I think having the whole day to yourself to do the things that you enjoy every single day is wonderful if you have it. Why fill it with internet and TV? Those are escapist activities for the stressed and depressed.