Retirement living budget reasonableness

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Invest&ski

New Member
Hello Seniors, we are a 62/60 couple living in FL currently. I know the answer to my question is very individualized, but I’m wondering about the living expense sets of other seniors as I approach retirement. I have paid fiduciary advisors but when I asked if my planned range seems adequate, they don’t offer much input. The range I’m using is $6500-7500/month incl. SS and our assets will support that. ( This amount DOES NOT including any support for our kids).
Various retirement planning programs show that this works with my assets to last until 95/93 but I don’t know what others middle/slightly upper middle class cola live on. House is paid off and we have seen the world and don’t plan major travel in retirement. We do have two adult kids we would like to help if resources permit.
I know some of you will sayJust plan on 80% of your pre retirement costs but we previously were in a much higher income category and lived so well that data is irrelevant when planning retirement. Any input would be appreciated.
 

I have them detailed, just can’t find a way to paste excel data or a pic into reply.
 

No one can estimate your budget without seeing all of your expenses.

I will say for myself I was surprised that once retired my monthly spending is much less than anticipated. I was debt free many years before retirement and have a nice nest egg yet rarely need to touch it, I live comfortably on my monthly SS benefit.
 
You could live on half that much if your house is paid for, unless you have major expenses (Car payments, medical bills and or high medical insurance, traveling, or going out to dinner several times a week).
P.G. & E. $150.00
WATER DISTRICT $ 75.00
CAR & HOME INSURANCE $500.00
CELL PHONE $100.00
T.V. $100.00
INTERNET $ 80.00
GARBAGE $ 33.00
PROPERTY TAX $400.00
GROCERIES $400.00
FUEL OIL & HEAT $ 40.00
HOUSE MAINT. $100.00
GAS MONEY $400.00
MEDICAL & DENTAL $400.00
MISC. EXPENSES $100.00
CLOTHING $ 100.00
EATING OUT $ 300.00
VACATIONS $ 200.00
Total approximately $3500.00
Many people live on less than that.
 
I live on WAY less than that a month. Income $768 from SS. Bills equal about $500. Each month the aprox. $300 I have left is eaten up by unexpected charges that suddenly become necessary. I am losing about $100 a month from my measly savings/checking I have left. ( $7000 ). I probably am going to need dentures in the near future. I don't know how that is going to be possible.
 
I survive/thrive on about 2400$$ per month, which is ironically more that I made while working full time....I paid off all debt, got rid of car, and only use Credit card if I can pay it off
immediately. I rent my little house...sure I am not traveling, nor eating 5 star meals,
but I am okay for me...... :cool:
 
Invest&ski said:
Hello Seniors, we are a 62/60 couple living in FL currently. I know the answer to my question is very individualized, but I’m wondering about the living expense sets of other seniors as I approach retirement. I have paid fiduciary advisors but when I asked if my planned range seems adequate, they don’t offer much input. The range I’m using is $6500-7500/month incl. SS and our assets will support that. ( This amount DOES NOT including any support for our kids).
Various retirement planning programs show that this works with my assets to last until 95/93 but I don’t know what others middle/slightly upper middle class cola live on. House is paid off and we have seen the world and don’t plan major travel in retirement. We do have two adult kids we would like to help if resources permit.
I know some of you will sayJust plan on 80% of your pre retirement costs but we previously were in a much higher income category and lived so well that data is irrelevant when planning retirement. Any input would be appreciated.
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Welcome!

It's normal to be concerned about your retirement budget no matter what your income range. We all know that things can change and we are in less than optimal conditions in the country right now.

I don't have any financial advice for you but I hope you'll hang around and join in the conversations.
 
This is all very helpful and be assured, I’m not bragging, just concerned because I always had a very above average income and therefore put aside a lot of it, mostly in after tax accounts, some in 401k. I guess you could saw we were privileged but retirement is sort of an equalizer; we all have to live within our means regardless of the past.
 
Invest&ski said:
This is all very helpful and be assured, I’m not bragging, just concerned because I always had a very above average income and therefore put aside a lot of it, mostly in after tax accounts, some in 401k. I guess you could saw we were privileged but retirement is sort of an equalizer; we all have to live within our means regardless of the past.
Click to expand...
Being well financed can change especially if health issues you didn't anticipate pop up. But overall what you post is true.
I think you will find that retirement tends to cost less, especially since you say you have the major expenses paid for.
So once you get a handle on your actual living expenses what do you think you will do with any excess to your needs?
 
Knight said:
Being well financed can change especially if health issues you didn't anticipate pop up. But overall what you post is true.
I think you will find that retirement tends to cost less, especially since you say you have the major expenses paid for.
So once you get a handle on your actual living expenses what do you think you will do with any excess to your needs?
Click to expand...
The planning program has it just increasing the investment balance to continue to generate more income. Over remaining life it funds that retirement income and leaves a hefty balance for our two kids.
 
These budgets are very different for most. So, I will not go into any of our details, but I will provide some of the basic guidelines we used to establish our retirement plan.

Have '0' dept (including mortgage) and use no credit after retirement!
Own your assets. (e.g., home, auto(s), etc.)
Make sure your home is in top condition when you retire (e.g. roof, HVAC, foundation, etc.)
Have emergency fund in a liquid account (we have $200k)
Have a good healthcare supplementary.
Get a comprehensive physical prior to retirement.
Have a good CPA and Lawyer (Estate) already working with you.
Have your Will completed before you retire?
We used the 80% estimate using our actual income before we retired. Our Social Security income was NOT included in this calculation, our SSI was on top of the 80% estimate in income.

That's the foundation for our planning. We retired at 63, not taking SSI until 67. We are now 73 and we are happy with our plan...
 
Timewise 60+ said:
These budgets are very different for most. So, I will not go into any of our details, but I will provide some of the basic guidelines we used to establish our retirement plan.

Have '0' dept (including mortgage) and use no credit after retirement!
Own your assets. (e.g., home, auto(s), etc.)
Make sure your home is in top condition when you retire (e.g. roof, HVAC, foundation, etc.)
Have emergency fund in a liquid account (we have $200k)
Have a good healthcare supplementary.
Get a comprehensive physical prior to retirement.
Have a good CPA and Lawyer (Estate) already working with you.
Have your Will completed before you retire?
We used the 80% estimate using our actual income before we retired. Our Social Security income was NOT included in this calculation, our SSI was on top of the 80% estimate in income.

That's the foundation for our planning. We retired at 63, not taking SSI until 67. We are now 73 and we are happy with our plan...
Click to expand...
I appreciate your reply and sorry I didn’t see it until late. Those are great recommendations. I agree with you regarding debt. We don’t/wont have any mortgage or other debt and cars are late model too. We will be downsizing, just not sure how far to take that. Will be going from a house worth 900k+ to something smaller with fewer expenses hopefully no more than 650k or if up to me alone <500k. Other than a decent place, I’m not interested in impressing anyone anymore.

That is part of my reason for trying to determine what is reasonable for most people then apply it to us as a standard; sort of backwards, but I was a high income earner for many years; I’ve downshifted now, to ease into retirement in 5 years or less. My range above already factors in SS and income from our investments. Funny thing is, the planning software my wealth mgt people use doesn’t factor in any long term care or end of life costs, but the one I use to double check their results builds in $325k of end of life care and other additional Medicare costs.
I asked them why theirs doesn’t and they said most don’t ask for it to be included and most just plan to sell house at that time and use proceeds for that care….sorry for long post..
 
Hello and Welcome :)

$6500 - $7500 a month ?? ...
I haven't worked in 17yrs but I can tell you that at no time in my life have I made $6500 - $7500 a month :ROFLMAO:

I'm single never married and frequent travel, frequent dining out and weekly entertainment are not on my list of expenses.
With that in mind, I live pretty okay on $3500 a month and find I have options. I don't worry about money at all. But it's just me.
Two years ago I had major dental expenses when I got full snap in dentures, but even that is now paid off. Jeep and sedan are paid off.
Still have a mortgage but it is only $286.24 a month. So glad I don't have to rent. Would likely be 5times or more than the mortgage.

That said, I have NO idea how much someone accustomed to high income with wife and adult children and possibly grandchildren might need these days. Trying to extrapolate ... $6500 - $7500 might could be a comfortable point. Dunno. So much depends on individual needs and circumstance. Very hard to say. Thing is though, I get the impression you have a very good financial head and will get it figured out :cool:
 
Invest&ski said:
I appreciate your reply and sorry I didn’t see it until late. Those are great recommendations. I agree with you regarding debt. We don’t/wont have any mortgage or other debt and cars are late model too. We will be downsizing, just not sure how far to take that. Will be going from a house worth 900k+ to something smaller with fewer expenses hopefully no more than 650k or if up to me alone <500k. Other than a decent place, I’m not interested in impressing anyone anymore.

That is part of my reason for trying to determine what is reasonable for most people then apply it to us as a standard; sort of backwards, but I was a high income earner for many years; I’ve downshifted now, to ease into retirement in 5 years or less. My range above already factors in SS and income from our investments. Funny thing is, the planning software my wealth mgt people use doesn’t factor in any long term care or end of life costs, but the one I use to double check their results builds in $325k of end of life care and other additional Medicare costs.
I asked them why theirs doesn’t and they said most don’t ask for it to be included and most just plan to sell house at that time and use proceeds for that care….sorry for long post..
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Sounds like you have a good plan going forward. Estimating your monthly costs is fairly easy for retirement. You have a fixed income and a few monthly costs that are fairly set like utilities, mortgage (if any), etc. and by looking at what you spend on food and entertainment now, you can then estimate those costs when retired. Then make adjustments for things you would like to do more than you do now like traveling, eating out, etc. Don't forget medical costs, and as you know end of life costs...make adjustments for inflation (I use a straight 3%/Yr.) and WaaaLaa...you have a good plan.

Best of luck,

The key is you have a plan....
 
I sure get tired of articles from rich folks who say that good hired help is hard to get and how they are suffering because they only have $1.3 million saved up for retirement. There will be no crocodile tears from me!

Gee! Wake up and smell the roses! Perhaps walk the streets of America and Canada and see how folks live in the real world. The real world is not some Hollywood film about the rich and famous lifestyles of a tiny minority of Americans.

In case you haven't heard many seniors cannot pay their rent, cannot pay for required medication and end up with tea and toast for breakfast 7 days/week.
 
Packerjohn said:
I sure get tired of articles from rich folks who say that good hired help is hard to get and how they are suffering because they only have $1.3 million saved up for retirement. There will be no crocodile tears from me!

Gee! Wake up and smell the roses! Perhaps walk the streets of America and Canada and see how folks live in the real world. The real world is not some Hollywood film about the rich and famous lifestyles of a tiny minority of Americans.

In case you haven't heard many seniors cannot pay their rent, cannot pay for required medication and end up with tea and toast for breakfast 7 days/week.
Click to expand...
Those are all very good facts and unfortunately true. What many don’t see is the sacrifices percents like I had made to educate us well while working in factory jobs or jobs they didn’t like. For years, I worked massive OT to pay off college loans, only to again go back at 40 to get an MBA. Twice during that time with small kids, my wife returned to college for additional degrees, which we paid for.
I paid for my own kids’ complete education to my own financial detriment in order to give them a better start. Sometimes the gains we make are the result of sacrifices we made earlier in life and those less fortunate just didn’t have the opportunities or make those sacrifices. I know rich people and poor people and in my experience, some in both groups are miserable and some are happy. In the end, we all are gone, so it’s not about who has the most along the way or at the end.
 
Invest&ski said:
Hello Seniors, we are a 62/60 couple living in FL currently. I know the answer to my question is very individualized, but I’m wondering about the living expense sets of other seniors as I approach retirement. I have paid fiduciary advisors but when I asked if my planned range seems adequate, they don’t offer much input. The range I’m using is $6500-7500/month incl. SS and our assets will support that. ( This amount DOES NOT including any support for our kids).
Various retirement planning programs show that this works with my assets to last until 95/93 but I don’t know what others middle/slightly upper middle class cola live on. House is paid off and we have seen the world and don’t plan major travel in retirement. We do have two adult kids we would like to help if resources permit.
I know some of you will sayJust plan on 80% of your pre retirement costs but we previously were in a much higher income category and lived so well that data is irrelevant when planning retirement. Any input would be appreciated.
Click to expand...
Live below your means. Initially keep Expenses < Income. As you get further into retirement and gain experience you can move towards Income > Expenses.
Multiple Income streams.
Ladder Income as much as possible.
Inflation will kill fix incomes in the Longterm.
Inflation will hurt equity income in the short-term.
Deflation could happen and some awareness of this possibility.
Be aware of the sequence of withdrawals, and the Red Zone.
We have LTCi since age 52. Now age 73. It is our greatest expense in retirement. 4 increases in last 10 years. We see LTCi as supplemental income in additional to our personal income when used for LTC.
How will your Income and Expenses be affected by an fairly early death of partner.
Your job in retirement is being able to stay in retirement.
Every one is different.
 
I can't say I'm financially savvy, but one thing we did before retirement was make sure we made all major expensive purchases while still working, ie., new roof, new HVAC, new car. We didn't want any big $15,000 surprises after retiring that ate up our nest egg.

Unfortunately, I ended up having to get teeth implants after retirement at a whopping $26,000. I got a bank loan against a CD and which is taking 5 years to pay off (1 more year to go!), but at least I didn't use our money. I try to use the bank's money for large purchases like that.

BTW, welcome to the forum!
 

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