Retirees-anyone miscalculate how much was needed?

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VictoriaF
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Re: Retirees-anyone miscalculate how much was needed?

Post by VictoriaF » Thu Sep 14, 2017 8:41 am

TheTimeLord wrote:
Thu Sep 14, 2017 7:55 am
VictoriaF wrote:
Wed Sep 13, 2017 10:05 pm
freebeer wrote:
Wed Sep 13, 2017 2:05 am
VictoriaF wrote:
Tue Sep 12, 2017 12:10 pm
...The sooner you retire, the healthier you start living and the farther your date of death moves.
Is there data that supports the proposition that early retirees live longer? I have heard this type of thing stated but I have also heard that a lot of early retirees soon die ... and everything I've heard has seemed anecdotal in nature.
I have seen articles that sitting is killing people. Most modern jobs are sitting. Daily commute is sitting.
I have seen articles that exposure to blue light of electronic devices interrupts people's sleep. Lack of sleep is killing people.
I have seen articles that a large percentage of employees are not satisfied with their jobs, ranging from lack of motivation to extreme stress.

Retirement gives you an opportunity to sit less, sleep more, become more physically active, get more exposure to daylight, and most importantly, pursue personally meaningful goals.

There are hard statistics, there are anecdotal statements, and there is simple logic: When you are in control of your life you can make it happier and healthier than when you don't have control

Victoria
And then there is seeing what you want to see. I believe the statement in red is 100% TRUE. What I have trouble believing is that someone has lived there whole live feeling they don't have that control will be suddenly feel they now have control by leaving the workforce. I am more inclined to believe they will just find new masters. There are people who would like to be/do something and there are people who want to be/do something, those that would like to/do be fantasize and talk but rarely act or follow through those that want to be/do take actions and find a way. I would be surprised if more than a small percentage of individuals take any more control of their life in retirement than they did prior to retirement. That said I am speaking about large populations and people are individuals and individuals can always be an exception (or exceptional).
My assumption is that the Bogleheads are different from the population at large. If we can take control of our finances and resist pressures ranging from consumer culture to the financial industry, we should be able to take control of our lives and resist the pressures of the TV and idle seniors.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

BanquetBeer
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Re: Retirees-anyone miscalculate how much was needed?

Post by BanquetBeer » Thu Sep 14, 2017 8:59 am

I find the thing I want control over most is my timeline. When do I wake up, when do I run errands. I need to get gas today and I need to go shopping at Costco this week. Would love to do so outside of peak hours. Since the hurricane there is usually a 3-4 car wait for gas at Costco during my commute home (drive right by there).

Even if I don't decided to add hobbies and change my lifestyle, how can the power to make that decision yourself be meaningless? Very few people like being told what to do - even if they would reach the same decision on action on their own.

smitcat
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Re: Retirees-anyone miscalculate how much was needed?

Post by smitcat » Thu Sep 14, 2017 9:04 am

VictoriaF wrote:
Thu Sep 14, 2017 8:41 am
TheTimeLord wrote:
Thu Sep 14, 2017 7:55 am
VictoriaF wrote:
Wed Sep 13, 2017 10:05 pm
freebeer wrote:
Wed Sep 13, 2017 2:05 am
VictoriaF wrote:
Tue Sep 12, 2017 12:10 pm
...The sooner you retire, the healthier you start living and the farther your date of death moves.
Is there data that supports the proposition that early retirees live longer? I have heard this type of thing stated but I have also heard that a lot of early retirees soon die ... and everything I've heard has seemed anecdotal in nature.
I have seen articles that sitting is killing people. Most modern jobs are sitting. Daily commute is sitting.
I have seen articles that exposure to blue light of electronic devices interrupts people's sleep. Lack of sleep is killing people.
I have seen articles that a large percentage of employees are not satisfied with their jobs, ranging from lack of motivation to extreme stress.

Retirement gives you an opportunity to sit less, sleep more, become more physically active, get more exposure to daylight, and most importantly, pursue personally meaningful goals.

There are hard statistics, there are anecdotal statements, and there is simple logic: When you are in control of your life you can make it happier and healthier than when you don't have control

Victoria
And then there is seeing what you want to see. I believe the statement in red is 100% TRUE. What I have trouble believing is that someone has lived there whole live feeling they don't have that control will be suddenly feel they now have control by leaving the workforce. I am more inclined to believe they will just find new masters. There are people who would like to be/do something and there are people who want to be/do something, those that would like to/do be fantasize and talk but rarely act or follow through those that want to be/do take actions and find a way. I would be surprised if more than a small percentage of individuals take any more control of their life in retirement than they did prior to retirement. That said I am speaking about large populations and people are individuals and individuals can always be an exception (or exceptional).
My assumption is that the Bogleheads are different from the population at large. If we can take control of our finances and resist pressures ranging from consumer culture to the financial industry, we should be able to take control of our lives and resist the pressures of the TV and idle seniors.

Victoria
I will stop sitting when I retire.
I will quit smoking when I retire
I will lose weight when I retire
I will appreciate my spouse more when I retire
I will use electronic devices less when I retire
I will enjoy the time I have more when I retire
I will travel more when I retire
etc , etc

Retirement is not the problem ,none of these need a special event like retiring to make them happen.
And from what I have seen in most cases.... retirement will not make any of these happen.

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TheTimeLord
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Re: Retirees-anyone miscalculate how much was needed?

Post by TheTimeLord » Thu Sep 14, 2017 9:25 am

VictoriaF wrote:
Thu Sep 14, 2017 8:41 am
TheTimeLord wrote:
Thu Sep 14, 2017 7:55 am
VictoriaF wrote:
Wed Sep 13, 2017 10:05 pm
freebeer wrote:
Wed Sep 13, 2017 2:05 am
VictoriaF wrote:
Tue Sep 12, 2017 12:10 pm
...The sooner you retire, the healthier you start living and the farther your date of death moves.
Is there data that supports the proposition that early retirees live longer? I have heard this type of thing stated but I have also heard that a lot of early retirees soon die ... and everything I've heard has seemed anecdotal in nature.
I have seen articles that sitting is killing people. Most modern jobs are sitting. Daily commute is sitting.
I have seen articles that exposure to blue light of electronic devices interrupts people's sleep. Lack of sleep is killing people.
I have seen articles that a large percentage of employees are not satisfied with their jobs, ranging from lack of motivation to extreme stress.

Retirement gives you an opportunity to sit less, sleep more, become more physically active, get more exposure to daylight, and most importantly, pursue personally meaningful goals.

There are hard statistics, there are anecdotal statements, and there is simple logic: When you are in control of your life you can make it happier and healthier than when you don't have control

Victoria
And then there is seeing what you want to see. I believe the statement in red is 100% TRUE. What I have trouble believing is that someone has lived there whole live feeling they don't have that control will be suddenly feel they now have control by leaving the workforce. I am more inclined to believe they will just find new masters. There are people who would like to be/do something and there are people who want to be/do something, those that would like to/do be fantasize and talk but rarely act or follow through those that want to be/do take actions and find a way. I would be surprised if more than a small percentage of individuals take any more control of their life in retirement than they did prior to retirement. That said I am speaking about large populations and people are individuals and individuals can always be an exception (or exceptional).
My assumption is that the Bogleheads are different from the population at large. If we can take control of our finances and resist pressures ranging from consumer culture to the financial industry, we should be able to take control of our lives and resist the pressures of the TV and idle seniors.

Victoria
I would agree, I just don't believe the vast majority of BH need to wait until retirement to take control of their lives and passions. it just makes me cringe when I hear people talking about their life like it won't begin until retirement. Retirement might indeed be fuller with more opportunity to pursue some passions but it doesn't mean you can't be doing a fair amount of those things prior to retirement also.
Run, You Clever Boy!

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TheTimeLord
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Re: Retirees-anyone miscalculate how much was needed?

Post by TheTimeLord » Thu Sep 14, 2017 9:35 am

mak1277 wrote:
Thu Sep 14, 2017 8:26 am
TheTimeLord wrote:
Tue Sep 12, 2017 7:50 pm
Why is it BH seem to believe they have no ability to have a life and a job at the same time? Your 20s, 30s and 40s are great years, why waste them saving for retirement? Answer, because in life there is a balance and you have to play the odds.
You always trot this out, but you're subject to the same faulty logic on the other end of the spectrum. Why do you seem to believe that people who want to retire early aren't already "having a life"? Maybe we have so many hobbies and things we want to do outside of work that our pesky job interferes more than we'd like. Maybe it *really* stinks having to cross you fingers for good weather on the 2 days you have off each week to enjoy your outdoor hobbies, when you just sat through 3 or 4 perfect days being chained to your desk. Maybe a 5-day trip isn't enough for you and you want the ability to take a 2- or 3- or 4-week vacation, but you only have a limited number of vacation days.
You are a 100% correct, the logic flaw cuts both ways. Some activities are very effected by outside influences such as weather and not everyone has 3, 4 or 5 weeks of vacation a year. That said, I don't believe that the vast majority of people who aren't maxing out their opportunities for these activities prior to retirement are going to significantly increase them after retirement. For some people the fantasy is better than the reality. I know several people who have far more fun before and after trips than actually on the trips. They enjoy thinking about their idealized version of activities before and telling everyone what they did after but don't appear to be having all that much fun doing.
Run, You Clever Boy!

DrGoogle2017
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Re: Retirees-anyone miscalculate how much was needed?

Post by DrGoogle2017 » Thu Sep 14, 2017 10:43 am

VictoriaF wrote:
Thu Sep 14, 2017 8:41 am
TheTimeLord wrote:
Thu Sep 14, 2017 7:55 am
VictoriaF wrote:
Wed Sep 13, 2017 10:05 pm
freebeer wrote:
Wed Sep 13, 2017 2:05 am
VictoriaF wrote:
Tue Sep 12, 2017 12:10 pm
...The sooner you retire, the healthier you start living and the farther your date of death moves.
Is there data that supports the proposition that early retirees live longer? I have heard this type of thing stated but I have also heard that a lot of early retirees soon die ... and everything I've heard has seemed anecdotal in nature.
I have seen articles that sitting is killing people. Most modern jobs are sitting. Daily commute is sitting.
I have seen articles that exposure to blue light of electronic devices interrupts people's sleep. Lack of sleep is killing people.
I have seen articles that a large percentage of employees are not satisfied with their jobs, ranging from lack of motivation to extreme stress.

Retirement gives you an opportunity to sit less, sleep more, become more physically active, get more exposure to daylight, and most importantly, pursue personally meaningful goals.

There are hard statistics, there are anecdotal statements, and there is simple logic: When you are in control of your life you can make it happier and healthier than when you don't have control

Victoria
And then there is seeing what you want to see. I believe the statement in red is 100% TRUE. What I have trouble believing is that someone has lived there whole live feeling they don't have that control will be suddenly feel they now have control by leaving the workforce. I am more inclined to believe they will just find new masters. There are people who would like to be/do something and there are people who want to be/do something, those that would like to/do be fantasize and talk but rarely act or follow through those that want to be/do take actions and find a way. I would be surprised if more than a small percentage of individuals take any more control of their life in retirement than they did prior to retirement. That said I am speaking about large populations and people are individuals and individuals can always be an exception (or exceptional).
My assumption is that the Bogleheads are different from the population at large. If we can take control of our finances and resist pressures ranging from consumer culture to the financial industry, we should be able to take control of our lives and resist the pressures of the TV and idle seniors.

Victoria
My goodness. You make a lot of assumptions there. I know exactly a few people who would fit BH about finance, but not about fitness. They are two different things.

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VictoriaF
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Re: Retirees-anyone miscalculate how much was needed?

Post by VictoriaF » Thu Sep 14, 2017 10:53 am

DrGoogle2017 wrote:
Thu Sep 14, 2017 10:43 am
My goodness. You make a lot of assumptions there. I know exactly a few people who would fit BH about finance, but not about fitness. They are two different things.
I am making assumptions based on many years of participating in the Forum and meeting hundreds of Bogleheads in person at the annual conferences and local meetings.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

2015
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Re: Retirees-anyone miscalculate how much was needed?

Post by 2015 » Thu Sep 14, 2017 11:14 am

carolinaman wrote:
Thu Sep 14, 2017 6:54 am
2015 wrote:
Wed Sep 13, 2017 1:34 am
I agree with this. I am living this right now.. I have been working long hours this year and I have done it at the expense of my workout schedule. But to add even more weight to the argument, I would point out that 5 years in your 40s or 50s (for some even early 60s) is nothing like the 5 years in your 80s or 90s. The state of your body, your mind and its senses is no where NEAR the same. Is it wise to be sacrificing those high quality years so you can "enjoy" your low quality ones?
Before retirement, I never let anything get in the way of my workout, regardless of my work schedule. Then again, I have been working out since I was 20 years old. Once, when I was overloaded with work and personal responsibilities, a friend told me to simply skip the gym for a while. My response was that the gym remains non-negotiable. In life, there's what you say and then there's where your shoes are. If you are really committed to your physicality, you won't need to read some hokey blog post (I'm looking at you, Seth Godwin) to do what you need to do when you need to do it whether you feel like it or not. This includes prioritizing your health, your workouts, and your diet. It's all a matter of Intention.

I do not at all subscribe to the physical limitations people put upon themselves as a result of aging. When friends told me one's metabolism slows down after age 50, my response is that mine sped up. When these same (overweight) friends state it's harder to get off the floor after age 60, I tell them I spring off the floor as easily as I did at 20 (did so today at the gym), when they tell me one's energy levels decline as one gets older, I tell them how I regularly go dancing, dancing intensely for four hours straight without ever needing (or wanting) to get off the dance floor. I have no intention of having "low quality years" as I age. In fact, recent research has shown that aging athletes experience extended healthy lifespan into late age, going into decline only in the last year or so. My intention is to follow their high performance health lifestyle by continuing my lifelong attention to diet, exercise, and optimal health. Aging is a mental disease, a socially contagious one at that, and I believe one must inoculate oneself against it by taking responsibility for one's choices.

I agree with the above excellent advice to track spending for at least 5 years before retirement. Personally, my weekly spending fell by about 25-50%, probably a result of reduced commuting expenses, drycleaning, and all those Mochas I had to bribe myself with to keep working.
[/quote]
********************************************************************************
I commend 2015 for doing all that he does to take of himself. However, despite those efforts, when people reach their 60s and above, medical conditions and physical limitations tend to occur with almost everyone. It is a rare person who will not have some physical challenges as they approach old age. I have always exercised, tried to eat a sensible diet, drink very little alcohol and do other things to care for my health. I feel that I am very fit - for a 73 year old person. I can still play 18 holes of golf walking and do many other things other people my age cannot. I feel blessed to do that. I jogged for many years but can no longer do so because of lower back issue and bad knee from a soccer injury many years ago. It seems every time I tackle a major home improvement project, I incur some issue. Wrist tendinitis, elbow tendinitis, shoulder issues as well as lower back. These are usually resolved with cortisone and PT. But I never experienced these issues until the past 5 years or so. I have to pace myself nowadays and not try to be superman.

People who intend to retire near normal retirement age (60s) and who plan a vigorous retirement to include lots of physical activity, need to realize they may have limitations in doing all of that.

I will conclude with this story. I went to my urologist a few years ago for annual checkup. His first question was "how is your stream?". I thought for a moment and said that it was ok, but it was not like it was 25 years ago. He replied "do you have anything that is working like it was 25 years ago". I hate a doctor with a sense of humor.
[/quote]

I agree we each have a different physiology, but I think what we can each do is choose to not settle. Not settle for the traditional viewpoint that aging equals loss and decline. Through conscious choices we can extend our healthspan as much as possible. I believe aging does equal loss, but what we lose is all those things we thought we had to be, do, have when we were younger. This is why I believe even if one were to slightly underestimate what was needed in retirement, the psychological and emotional gains from aging will more than compensate for not doing as much discretionary spending as much as we would like. This not to say I advocate miscalculating how much you need to retire, however!

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ruralavalon
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Re: Retirees-anyone miscalculate how much was needed?

Post by ruralavalon » Thu Sep 14, 2017 11:15 am

The Wizard wrote:
Tue Sep 12, 2017 8:04 pm
TheTimeLord wrote:
Tue Sep 12, 2017 7:53 pm
The Wizard wrote:
Tue Sep 12, 2017 5:12 pm
Right now I'm trying to nail down a 9-day dive trip to Bonaire with my adult son in late April.
Haven't been, very jealous. You going to be based on land or on a live aboard? Man I hope you have the best time.
Land. Buddy Dive again for the 6th or 7th time.
I like shore diving and Bonaire and the official currency there is the USD...
Where is the emoji for envy???
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Admiral
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Re: Retirees-anyone miscalculate how much was needed?

Post by Admiral » Thu Sep 14, 2017 11:26 am

To get back on topic a little:

I am not retired, but I will say this: We are saving and investing with the expectation (goal?) that we can spend as much if not more than we are spending now. Now, the reason why we will hopefully be able to do this is that our mortgage will be paid off, our kids will be out of school, we won't have to feed and clothe them (hopefully not!) etc. So, the hope is that we will spend the same, but spend it on other things, mostly more travel, and more on ourselves.

In reviewing our budget, aside from housing, much of our expense is because we're paying for 4 people, not two: private schooling, more groceries, more expensive dinners out, more activities, airline tickets for 4 people, just...MORE. If you have kids, you know how it goes.

I do expect that we will continue to support our (future) adult children if and when they need help, and have factored that in. I would never even think about retiring if I was nervous in any way that I might have to curb my lifestyle. I am fortunate in that I have a flexible workplace that allows me to come and go as I please (within reason) and includes a lot of vacation, not to mention retirement healthcare, assuming I stay here up to late 50s. That is a big factor in thinking about future expenses.

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ruralavalon
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Re: Retirees-anyone miscalculate how much was needed?

Post by ruralavalon » Thu Sep 14, 2017 11:39 am

Icecakes wrote:
Mon Sep 11, 2017 7:56 pm
From reading bogleheads it strikes me that many retirees here seem to be pleasantly surprised at how much less they needed than what they factored in their accumulation phase.

I do wonder if anyone here has retired but had to really reduce spending due to unplanned higher than anticipated retirement expenses (or spending) when they finally retired?

Or has everyone been pleasantly surprised?
I am in the seventh year of retirement. My estimate of post-retirement expenses has turned out to be very accurate.

We had not used a budget. Creating that estimate was difficult and time-consuming. I examined our actual expenses for the previous 2-3 years based on our check register and credit card statements, and then adjusted for the expenses would either decrease or increase by the time of retirement including extra money for travel.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

retire57
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Re: Retirees-anyone miscalculate how much was needed?

Post by retire57 » Thu Sep 14, 2017 11:43 am

We did not foresee paying $900/month for medical insurance in retirement. That’s why I continue to work part-time until DH is eligible for Medicare. And may continue until DH's FRA.

Other than that notable exception, our expenses are what we expected.

rec7
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Re: Retirees-anyone miscalculate how much was needed?

Post by rec7 » Thu Sep 14, 2017 7:50 pm

retire57 wrote:
Thu Sep 14, 2017 11:43 am
We did not foresee paying $900/month for medical insurance in retirement. That’s why I continue to work part-time until DH is eligible for Medicare. And may continue until DH's FRA.

Other than that notable exception, our expenses are what we expected.
No obamacare? Medicare?
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Re: Retirees-anyone miscalculate how much was needed?

Post by The Wizard » Thu Sep 14, 2017 8:24 pm

rec7 wrote:
Thu Sep 14, 2017 7:50 pm
retire57 wrote:
Thu Sep 14, 2017 11:43 am
We did not foresee paying $900/month for medical insurance in retirement. That’s why I continue to work part-time until DH is eligible for Medicare. And may continue until DH's FRA.

Other than that notable exception, our expenses are what we expected.
No obamacare? Medicare?
That IS Obamacare.
My GF, not Medicare eligible, also pay $900-something per month...
Attempted new signature...

retire57
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Re: Retirees-anyone miscalculate how much was needed?

Post by retire57 » Thu Sep 14, 2017 8:34 pm

rec7 wrote:
Thu Sep 14, 2017 7:50 pm
retire57 wrote:
Thu Sep 14, 2017 11:43 am
We did not foresee paying $900/month for medical insurance in retirement. That’s why I continue to work part-time until DH is eligible for Medicare. And may continue until DH's FRA.

Other than that notable exception, our expenses are what we expected.
No obamacare? Medicare?
We are insured by the group coverage we had while working. We had the option of continuing the coverage - an easy decision as the premiums (high as they are) are less than we would pay for comparable coverage through the ACA.

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Re: Retirees-anyone miscalculate how much was needed?

Post by BanquetBeer » Thu Sep 14, 2017 9:01 pm

It is hard getting caught up in life. After waking up at 5, work, watching the kid until SO gets home around 6 where we eat dinner - I'm pretty exhausted by the end. I don't have a life these days. Used a week vacation for a hospital stay (and probably a few grand when I get the bill).

Pre relationship I traveled 2 big trips a year and 3-4 small trips. Relationship was 1 big & 2-3 small. Now with kid(s) I'm lucky to take 1-2 small family trips (business travel excluded). I expect to travel more when we can do things of common interest but vacation time will be limited. Booking camp sites during fall/winter weekends/holidays is nearly impossible last minute and when there is a 50% chance someone will be sick.. not really invested in planning. You could call it an excuse and some of it is.

I think it is not realistic to say I won't travel more once the kids are older and especially once I'm retired. I know my mom became way more active and did more travel post retirement.

There are always unrealistic people who are 'going to loose weight' but those tend to be the same people who had difficulty accomplishing difficult tasks throughout their lives. They lack grit.

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Re: Retirees-anyone miscalculate how much was needed?

Post by rec7 » Thu Sep 14, 2017 9:13 pm

The Wizard wrote:
Thu Sep 14, 2017 8:24 pm
rec7 wrote:
Thu Sep 14, 2017 7:50 pm
retire57 wrote:
Thu Sep 14, 2017 11:43 am
We did not foresee paying $900/month for medical insurance in retirement. That’s why I continue to work part-time until DH is eligible for Medicare. And may continue until DH's FRA.

Other than that notable exception, our expenses are what we expected.
No obamacare? Medicare?
That IS Obamacare.
My GF, not Medicare eligible, also pay $900-something per month...
I pay about $100 and am going to $0 in a couple of years. You must have a high income.
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack

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Re: Retirees-anyone miscalculate how much was needed?

Post by The Wizard » Fri Sep 15, 2017 5:42 am

rec7 wrote:
Thu Sep 14, 2017 9:13 pm
The Wizard wrote:
Thu Sep 14, 2017 8:24 pm
rec7 wrote:
Thu Sep 14, 2017 7:50 pm
retire57 wrote:
Thu Sep 14, 2017 11:43 am
We did not foresee paying $900/month for medical insurance in retirement. That’s why I continue to work part-time until DH is eligible for Medicare. And may continue until DH's FRA.

Other than that notable exception, our expenses are what we expected.
No obamacare? Medicare?
That IS Obamacare.
My GF, not Medicare eligible, also pay $900-something per month...
I pay about $100 and am going to $0 in a couple of years. You must have a high income.
ACA rates increase with age (she's 68), and while her income is about $8000 over the upper limit for subsidies, I wouldn't call it really high income...
Attempted new signature...

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ruralavalon
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Re: Retirees-anyone miscalculate how much was needed?

Post by ruralavalon » Fri Sep 15, 2017 9:39 am

The Wizard wrote:
Fri Sep 15, 2017 5:42 am
rec7 wrote:
Thu Sep 14, 2017 9:13 pm
The Wizard wrote:
Thu Sep 14, 2017 8:24 pm
rec7 wrote:
Thu Sep 14, 2017 7:50 pm
retire57 wrote:
Thu Sep 14, 2017 11:43 am
We did not foresee paying $900/month for medical insurance in retirement. That’s why I continue to work part-time until DH is eligible for Medicare. And may continue until DH's FRA.

Other than that notable exception, our expenses are what we expected.
No obamacare? Medicare?
That IS Obamacare.
My GF, not Medicare eligible, also pay $900-something per month...
I pay about $100 and am going to $0 in a couple of years. You must have a high income.
ACA rates increase with age (she's 68), and while her income is about $8000 over the upper limit for subsidies, I wouldn't call it really high income...
In planning for retirement expenses remember that even under Medicare there will be premiums for Medicare part B, for drug coverage under Medicare part D, and usually for a Medicare Supplement policy, as well as copays and deductibles depending on which supplemental policy is bought.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

rec7
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Re: Retirees-anyone miscalculate how much was needed?

Post by rec7 » Fri Sep 15, 2017 9:49 am

The Wizard wrote:
Fri Sep 15, 2017 5:42 am
rec7 wrote:
Thu Sep 14, 2017 9:13 pm
The Wizard wrote:
Thu Sep 14, 2017 8:24 pm
rec7 wrote:
Thu Sep 14, 2017 7:50 pm
retire57 wrote:
Thu Sep 14, 2017 11:43 am
We did not foresee paying $900/month for medical insurance in retirement. That’s why I continue to work part-time until DH is eligible for Medicare. And may continue until DH's FRA.

Other than that notable exception, our expenses are what we expected.
No obamacare? Medicare?
That IS Obamacare.
My GF, not Medicare eligible, also pay $900-something per month...
I pay about $100 and am going to $0 in a couple of years. You must have a high income.
ACA rates increase with age (she's 68), and while her income is about $8000 over the upper limit for subsidies, I wouldn't call it really high income...
I understand just over the subsidy cliff. Not high income but high for a retiree.
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack

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Location: Massachusetts

Re: Retirees-anyone miscalculate how much was needed?

Post by david_that_guy » Fri Sep 15, 2017 4:17 pm

I've only been retired for 15.5 months, so it's a bit early to make a judgement, but so far our core expenses have been the same as they were our last few years of working. I budgeted more for international travel, so that was an expected additional expense, and we've kept within that budget so far.

The only miscalculation has been medical expenses. I budgeted for COBRA health insurance and will soon be switching to ACA. I knew what COBRA cost and I planned for ACA insurance rates to increase. However, so far my wife and I have had more medical issues in the last 15 months than in the previous 10 years combined. It sucks getting older. So, our out of pocket medical costs have been far higher than I budgeted. We've both been very healthy our entire lives, eat well, exercise, etc., so I just didn't expect this much medical spending so soon. We're too young for medicare and make too much for ACA costs to be subsidized. Also, the deductibles for our next policy will be higher than I expected.

Fortunately, we have enough money saved that we can handle the additional expenses. Worst case, we may need to cut back on some of our travel.

Overall, my advice for people retiring before 65 is too assume more medical costs. No matter how healthy you are and even if you have been doing everything right as far as diet and exercise, you can't assume you won't have health problems, especially if you are near or over 60.

Lynette
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Joined: Sun Jul 27, 2014 9:47 am

Re: Retirees-anyone miscalculate how much was needed?

Post by Lynette » Fri Sep 15, 2017 5:00 pm

I miscalculated how much it would take me to fix up my 1950 house. It is in an area where amazingly they are tearing down little house like mine and building mansions. There are two being demolished in my short block. But the location is ideal for me so I decided to fix up the house and garden. The end of the upgrade will be in a few weeks time when I get a new driveway - $11,000. I think I've spent over $60,000 now. The fun part is the garden. Shrubs are perennials are on sale so I spent about $200 today and that included a tree that will block the view from my neighbors mansion over my back yard! I did not know that I would have to pay IRMAA premiums as I have pensions and SS and RMDs. With Medicare premiums for B and D, Medigap F and drug coverage, I am paying about three times what I paid while employed. Fortunately I'm quite healthy so I don't have much in the way of additional medical expenses. My expenses are covered by pensions and social security. I think that for all retirees, the unknown is future healthcare costs especially if one lands up in a nursing home.

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