Retirement expense projection. Anyone else willing to share?

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michaeljc70
Posts: 9188
Joined: Thu Oct 15, 2015 3:53 pm

Re: Retirement expense projection. Anyone else willing to share?

Post by michaeljc70 »

I projected the same as I spent while working. I figured any savings from gas (for commute), work clothes, lunch at work or stuff like that would go toward more vacations/hobbies. 6 years in I am spending almost exactly what I was spending when working. Of course there is a 5-10% variation due to one off things like a new furnace and other one off expenses.
Meme
Posts: 32
Joined: Tue Jan 09, 2018 2:59 pm

Re: Retirement expense projection. Anyone else willing to share?

Post by Meme »

We retired in 2019 & tracked our expenses for about 5 years prior to retirement & we’re spending a little less than while we were working. About $150k a year.

The big items -
Taxes- federal, state & property are about $45k
Health insurance & co pays - we have Medicare, medigap & dental- $12k
Travel - $18k
Gifts - 10k

$65k for the rest. Includes food, dining out, utilities, car & homeowners insurance, clothing, gym, auto & home expenses & whatever else is put on the credit card.

We have a DAF which we fund every other year- take that money from investments

We don’t have a mortgage or a car payment. Own used cars & pay cash for them from savings.

We have a small pension & I collect SS. This covers about 1/3 of our expenses. Husband will collect SS in 2 years at 70 & that will bring us close to 2/3 of our expenses. The rest comes from savings, taxable accounts & in 2023 we will begin to withdraw from an IRA.

Our property taxes are high but we love our town- so for now- we are willing to pay those taxes.
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