The cost of retirement keeps climbing

bobcat said:
According to a recent survey by Clever Real Estate involving 1000 retirees, they claim a new retiree needs, on average, $823,800 in savings and investments to retire comfortably in 2026. That’s a significant increase from the $580,310 figure they estimated for last year. That's almost a $250,000 jump from the previous year. That's crazy. I can see some inflation and fallout from tariffs, but this can't be the new normal. Many retirees would be lucky to have a quarter of that.

I don't know what a comfortable retirement looks like with this picture, but it's quite a stretch from what I imagined. I really think it depends on what one's expectations and habits are, and where they live. Maybe I'm being naive.
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Actually, I'm surprised that their number is closer to $800.000 than the one million I often see when reading financial articles about retirees. I read an article a couple of days ago in which people who were asked how much said 1.2 million. Each person's situation is different however and many factors contribute to what is actually needed. Still, that is quite an increase and I believe things will only get worse.

I get a pension and social security, our co-op mortgage is PIF and even with the HOA fees, our housing costs are about 1/3 to 1/4 of what average housing costs are in my and surrounding areas. I no longer own a car and don't spend a lot on food (especially since I don't eat red meat). Those are major factors governing how much I actually need to feel comfortable. Blessedly I feel very comfortable with the nest egg I have.
 
OneEyedDiva said:
Actually, I'm surprised that their number is closer to $800.000 than the one million I often see when reading financial articles about retirees. I read an article a couple of days ago in which people who were asked how much said 1.2 million. Each person's situation is different however and many factors contribute to what is actually needed. Still, that is quite an increase and I believe things will only get worse.

I get a pension and social security, our co-op mortgage is PIF and even with the HOA fees, our housing costs are about 1/3 to 1/4 of what average housing costs are in my and surrounding areas. I no longer own a car and don't spend a lot on food (especially since I don't eat red meat). Those are major factors governing how much I actually need to feel comfortable. Blessedly I feel very comfortable with the nest egg I have.
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I have tried to reconcile the differences between the view that retirement will become much more expensive and the other view that as robotics handle mostly everything, the cost of retirement and just general living will dramatically reduce. Both are speculation but from different assumptions. The ones predicting an escalating cost are basing it on current data and extrapolating from that. However, Musk and others are saying the current model is going to dramatically change into a technological revolution that will change the cost of housing, healthcare, transportation, manufacturing, food, and virtually everything else.

It's hard to figure out who's right, but in time, I think the latter model will be a little closer to truth. Logically, it just makes sense that if machines everywhere are able to work 24/7 with no breaks, vacations, sick pay, hourly wage, etc..., then the cost of everything should decline. It just happens gradually.

That being said, I have to keep in mind that I'm not trying to fund someone else's retirement, I trying to fund mine, and as you pointed out, there are many factors that affect what it needs to be. It doesn't take a lot to make me happy, so however it shakes out, I will deal with it if and when it happens.
 
@bobcat, adding to your posts about robots, I believe they'll soon become vital to the home care field. Physically moving frail or disabled humans is extremely taxing on other humans, so robot "wranglers" would be a game changer. Presumably early versions show up in hospitals, ALs and SNFs. If they work out, there's no reason to think home versions wouldn't be next.

Example: my little Roomba scoots around the house three days a week. Is it as thorough as when I push a full size vacuum cleaner around? No. (That's why it runs three days a week.) Is it good enough? You betcha. And it saves DH & my backs.

We also have a robot pool vacuum cleaner. It runs every night and keeps our pool sparkling. Again, it saves our backs. We just add chlorine.

My daughter has a robot mop. I don't need one at the moment because most of my house has wall to wall carpets, but I'm also not ruling one out. I'm all for household helpers.

As for how this affects retirement costs: Without Roomba, I'd likely have a twice monthly housekeeping service. Roughly $200/visit. So $4800 a year. Sure, the housekeepers would do more than just vacuum, but DH & I can manage those chores. Avoiding vacuuming would be the prime motivator to hire help.

Without the pool robot, I'd be looking at a minimum of $150/month for weekly pool service. $1800/year.

No idea how much robot wranglers would reduce the need (and therefore costs) for SNF stays and round the clock care needs, but it would surely be significant.
 
StarSong said:
@bobcat, adding to your posts about robots, I believe they'll soon become vital to the home care field. Physically moving frail or disabled humans is extremely taxing on other humans, so robot "wranglers" would be a game changer. Presumably early versions show up in hospitals, ALs and SNFs. If they work out, there's no reason to think home versions wouldn't be next.

Example: my little Roomba scoots around the house three days a week. Is it as thorough as when I push a full size vacuum cleaner around? No. (That's why it runs three days a week.) Is it good enough? You betcha. And it saves DH & my backs.

We also have a robot pool vacuum cleaner. It runs every night and keeps our pool sparkling. Again, it saves our backs. We just add chlorine.

My daughter has a robot mop. I don't need one at the moment because most of my house has wall to wall carpets, but I'm also not ruling one out. I'm all for household helpers.

As for how this affects retirement costs: Without Roomba, I'd likely have a twice monthly housekeeping service. Roughly $200/visit. So $4800 a year. Sure, the housekeepers would do more than just vacuum, but DH & I can manage those chores. Avoiding vacuuming would be the prime motivator to hire help.

Without the pool robot, I'd be looking at a minimum of $150/month for weekly pool service. $1800/year.

No idea how much robot wranglers would reduce the need (and therefore costs) for SNF stays and round the clock care needs, but it would surely be significant.
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Yes, I think eldercare robots are being used in China and Japan, but just in pilot programs, Safety is the key concern, so it's not something to rush into. As you mentioned, task specific robots are better suited for now, like Roombas, lawn mowing, snow removal, laundry, and that sort of thing, but slowly they will likely be integrated into doing dishes, cooking, window washing, house cleaning, and other chores.
 
bobcat said:
Well, here is another twist. According to Elon Musk, once robots and AI are making everything 24/7, the cost of everything will plummet and money will become irrelevant (According to him). Now if the cost of retirement is rapidly escalating, that tells me these two camps aren't talking to each other or there is a lot of miscalculation going on. Robotics companies are betting hundreds of billions on the future, so it can't be all just BS.
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Elon is one smart guy. But he still puts his pants on one leg at a time.
 
StarSong said:
@bobcat, adding to your posts about robots, I believe they'll soon become vital to the home care field. Physically moving frail or disabled humans is extremely taxing on other humans, so robot "wranglers" would be a game changer. Presumably early versions show up in hospitals, ALs and SNFs. If they work out, there's no reason to think home versions wouldn't be next.

Example: my little Roomba scoots around the house three days a week. Is it as thorough as when I push a full size vacuum cleaner around? No. (That's why it runs three days a week.) Is it good enough? You betcha. And it saves DH & my backs.

We also have a robot pool vacuum cleaner. It runs every night and keeps our pool sparkling. Again, it saves our backs. We just add chlorine.

My daughter has a robot mop. I don't need one at the moment because most of my house has wall to wall carpets, but I'm also not ruling one out. I'm all for household helpers.

As for how this affects retirement costs: Without Roomba, I'd likely have a twice monthly housekeeping service. Roughly $200/visit. So $4800 a year. Sure, the housekeepers would do more than just vacuum, but DH & I can manage those chores. Avoiding vacuuming would be the prime motivator to hire help.

Without the pool robot, I'd be looking at a minimum of $150/month for weekly pool service. $1800/year.

No idea how much robot wranglers would reduce the need (and therefore costs) for SNF stays and round the clock care needs, but it would surely be significant.
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I have a small house. Will the Roomba go room to room by itself?

Edit: I just watched a video on one that was $1300. It mops too! I'm sure they have many other priced models. They've been around a while so the kinks should be worked out. Maybe in my future. For now I'll lug around the old Kenmore.
 
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Brookswood said:
A $250,000 jump in one year? That means somebody goofed big time last year or this year. Or maybe in both years. I would not trust the source of those numbers. They don’t pass the smell test.
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Yes, and even though there are several surveys that indicate considerable increases, my feeling is this: These projections and estimates are like predicting the weather. The further out you go, the more wrong you can be. They are looking at long-term healthcare costs, medications, utilities, mortgages, insurance, groceries, home repairs, etc... and looking at the current rate of inflation, and then projecting that out over 30 years. That's a lot of variables.

Even if one decides to age at home and use In-Home Healthcare services for 30 hrs a week at $30 per hr, that's about $900 a week x 52 = Almost $50,000 a year. Then factoring in how much the average lifespan may increase in the next 30 years, and it can skew the numbers dramatically, and that's not even considering all the other variables I mentioned. In my view these are all based on assumption and speculation.

Everyone's situation is different. Perhaps they have family that will help with eldercare. Maybe their home is paid for. Maybe they live simply. Maybe they are healthier than average. Maybe they will have a sudden demise and there won't be any long-term care. Maybe robotics will reduce the cost of care dramatically. There are a lot of factors that could change this picture, so even though the current forecasts may look this way, I would still rather do my own math based on my situation rather than being squeezed into the mold. JMO
 
Much of this discussion has to do with wants vs needs.

We would all like to maintain our pre retirement lifestyle, travel, age in place, leave a legacy to family, etc… but the truth is that many of us will have to make some hard choices in order to be comfortable in our final years.

IMO an attitude adjustment can be as important as many of the financial adjustments that we may face.

As we get older what do we actually need other than a safe clean room, a comfortable chair, side table, twin bed, small dresser, television, phone, a small bookcase for our treasures, a few clothes, and an endless supply of treats. 🍪🍭🍬🍹🍕🍦
 
Aunt Bea said:
Much of this discussion has to do with wants vs needs.

We would all like to maintain our pre retirement lifestyle, travel, age in place, leave a legacy to family, etc… but the truth is that many of us will have to make some hard choices in order to be comfortable in our final years.

IMO an attitude adjustment can be as important as many of the financial adjustments that we may face.

As we get older what do we actually need other than a safe clean room, a comfortable chair, side table, twin bed, small dresser, television, phone, a small bookcase for our treasures, a few clothes, and an endless supply of treats. 🍪🍭🍬🍹🍕🍦
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Well, not to be grim here, but we don't actually know what are needs will be until it is revealed. Dementia, a stroke, cancer, loss of mobility, and a number of different things can change what our needs may be. It's unsettling to think about, but important to keep in mind.
 
hearlady said:
I have a small house. Will the Roomba go room to room by itself?

Edit: I just watched a video on one that was $1300. It mops too! I'm sure they have many other priced models. They've been around a while so the kinks should be worked out. Maybe in my future. For now I'll lug around the old Kenmore.
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Roombas and Roomba closes start in the $300 range.
These robots learn the layout of your house and go from room to room (though I don't know if any navigate stairs). Mine (a 2-1/2 year old $400-ish model) returns to its base for recharging or empty its contents. After recharging or emptying, it returns and finishes the job. It runs for about an hour on a charge and requires about an hour to recharge.
 
I am not afraid of the increasing cost of retirement living. I was poor when I was young, I had to be very frugal back then. And at my age, I only need food, transportation, internet, and healthcare. I own my house. And, if I am poor again, MediAid will kick in. I can also decline medical treatments if they don't help the quality of life.
 
bobcat said:
Well, here is another twist. According to Elon Musk, once robots and AI are making everything 24/7, the cost of everything will plummet and money will become irrelevant (According to him).
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Well, if money will become irrevelant.....I'd better put mine to use before it does so.

Bye, off to the mall to buy a new wardrobe and some diamond earrings...LOL.
 
bobcat said:
Well, not to be grim here, but we don't actually know what are needs will be until it is revealed. Dementia, a stroke, cancer, loss of mobility, and a number of different things can change what our needs may be. It's unsettling to think about, but important to keep in mind.
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Yes, and we have no idea how greatly the cost of bare essentials to survival will rise - such as utilities: water, gas, electricity, home insurance, auto insurance, and Medicare premiums, all at the same time when SSA benefits and Medicare benefit cuts are scheduled for cuts.
 
MACKTEXAS said:
Yes, and we have no idea how greatly the cost of bare essentials to survival will rise - such as utilities: water, gas, electricity, home insurance, auto insurance, and Medicare premiums, all at the same time when SSA benefits and Medicare benefit cuts are scheduled for cuts.
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Yes. I have heard of seniors turning to one solution. It is loosely called a senior group home, or board and care home. It's kinda like a large converted single family home with a dozen rooms or so for bedrooms, a large kitchen, large dining area, and shared living room. It's more home-like than a nursing home or facility. There is staff on site 24/7 to help with meals, medication, etc..., but they are not a medical facility, although they are licensed by the state.

It's smaller, quieter, and more personal, but with a lower cost than traditional nursing homes. Granted, one would prefer to live in their own home as long as possible, but if it comes to hard choices that require one to leave, it is an option.

I could see that working on an even smaller scale where several people could go together to buy maybe a 4 or 5 bedroom home and just share expenses, kinda like college kids do, only it would be set up for seniors. Collectively, they could even hire a home healthcare worker to work full time. It wouldn't even need to be licensed with the state. It would just be seniors living under the same roof. It would avoid 5 separate mortgages, 5 utility bills, insurance, and all the other separate housing expenses. Shared meals and a little companionship may be a plus as well. If it was owned by someone else, there is always profit involved. If it's owned by the group, that is eliminated. Something to think about.
 
bobcat said:
Yes. I have heard of seniors turning to one solution. It is loosely called a senior group home, or board and care home. It's kinda like a large converted single family home with a dozen rooms or so for bedrooms, a large kitchen, large dining area, and shared living room. It's more home-like than a nursing home or facility. There is staff on site 24/7 to help with meals, medication, etc..., but they are not a medical facility, although they are licensed by the state.

It's smaller, quieter, and more personal, but with a lower cost than traditional nursing homes. Granted, one would prefer to live in their own home as long as possible, but if it comes to hard choices that require one to leave, it is an option.

I could see that working on an even smaller scale where several people could go together to buy maybe a 4 or 5 bedroom home and just share expenses, kinda like college kids do, only it would be set up for seniors. Collectively, they could even hire a home healthcare worker to work full time. It wouldn't even need to be licensed with the state. It would just be seniors living under the same roof. It would avoid 5 separate mortgages, 5 utility bills, insurance, and all the other separate housing expenses. Shared meals and a little companionship may be a plus as well. If it was owned by someone else, there is always profit involved. If it's owned by the group, that is eliminated. Something to think about.
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Definitely something to think about. 😉🤭😂

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bobcat said:
Yes. I have heard of seniors turning to one solution. It is loosely called a senior group home, or board and care home. It's kinda like a large converted single family home with a dozen rooms or so for bedrooms, a large kitchen, large dining area, and shared living room. It's more home-like than a nursing home or facility. There is staff on site 24/7 to help with meals, medication, etc..., but they are not a medical facility, although they are licensed by the state.

It's smaller, quieter, and more personal, but with a lower cost than traditional nursing homes. Granted, one would prefer to live in their own home as long as possible, but if it comes to hard choices that require one to leave, it is an option.

I could see that working on an even smaller scale where several people could go together to buy maybe a 4 or 5 bedroom home and just share expenses, kinda like college kids do, only it would be set up for seniors. Collectively, they could even hire a home healthcare worker to work full time. It wouldn't even need to be licensed with the state. It would just be seniors living under the same roof. It would avoid 5 separate mortgages, 5 utility bills, insurance, and all the other separate housing expenses. Shared meals and a little companionship may be a plus as well. If it was owned by someone else, there is always profit involved. If it's owned by the group, that is eliminated. Something to think about.
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Who is going to find the 4 or 5 seniors to live in the same house? Who's house is it? If some of the seniors in the house need care, who will do it? There will be weaker or sickers seniors than the others. It would be unfair for the healthy ones to always do the chores.
 
OldOld said:
Who is going to find the 4 or 5 seniors to live in the same house? Who's house is it? If some of the seniors in the house need care, who will do it? There will be weaker or sickers seniors than the others. It would be unfair for the healthy ones to always do the chores.
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Well, it is estimated that there are between 50,000 to 70,000 shared senior living arrangements nationwide, so these questions do get worked out and likely vary from one to another. I haven't looked into it, but there probably is some sort of rough formula or design to use as a guideline that can be tweaked to each unique situation.
 
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