Was it the little things or the big things that have impacted your retirement finances?

M

Muskrat

Senior Member
Location
Mainly arizona
My situation is a combination of both. A final divorce at 38 with almost no assets was a wake up call. No viable career, no child support, no retirement savings. What was a poor girl to do? Well. Best thing that ever happened to me. My near poverty upbringing was great training. I became a nurse…saved, scrimped, took calculated financial risks. Now I am secure, happy and in a long term relationship not dependent on his resources. We sit equal at the table.
 

Colleen said:
When my husband died in October, I lost his pension so now I get by with SS only, which is less then half of what we were getting when he was alive. Poor decision on our part for his pension :(
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Was there some sort of "decision" there? Like opting for a better payout but sacrificing the survivor benefit or something? If so I'm sorry. I could see how that could happen.
 
dilettante said:
Was there some sort of "decision" there? Like opting for a better payout but sacrificing the survivor benefit or something? If so I'm sorry. I could see how that could happen.
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My husband retired when he was 61. He had a hard, physical job his whole life and at 61 he was worn out so he retired. I was pretty naive about SS and pensions and all that so when he applied for his pension, he opted to take the maximum, which left me with no survivor benefits. I don't think he understood that that's what would happen to me. He just didn't understand and neither did I. I get by but it's a big adjustment from $5100/month to $2100 (and I still have a mortgage payment out of that).
 
We're not "wealthy", but we continue to bring in more than we spend., Our parents were frugal, and raised us both to avoid unnecessary spending and debt. IMO, the best thing the government ever did for the working class was the implement of the IRA/401K programs. We continue to encourage our kids/grandkids to save, and limit their spending, as by the time they retire, the SS program will likely be of little assistance.
 
My retirement finances were actually impacted in a positive way by receiving SS early, I had not planed on that at all.

I was part owner of a business and we sold it in 2018, I was thinking I would semi retire then, I was 57. I had also been dealing with some health issues for several years and my doctor mentioned I would qualify for disability, I applied and was accepted, just like that.

So by age 58 I was receiving my full benefit, and two years later I was able to get on Medicare. Receiving SSDI and then Medicare changed everything for me financially, I can easily live on my monthly benefit and only draw savings or investment money for big ticket spending.
 
I was watching a channel on Youtube I had subscribed to a while back about this guy that was retiring before age 65 and he wanted to see if he and his wife, who already collects SS, can live mainly on SS. Every month he gives an update on their "living expenses". It's been about 8 months for him in retirement and he started collecting SS in January.

It's interesting because out of their combined SS income each month of $3783, they spend all but maybe $150-$200 a month. They don't have a mortgage but they have big ticket expenses like $1,000/month on groceries for just the 2 of them. They go to Costco/Sam's and buy bulk. Not just once in a while but every week. They also spend $250/month on cable. They spend $250/month on eating out. They also spend $100/month on lottery tickets. They spend all of it.

I kept wondering what his wife would do if he died first. The other day, he had a video addressing that very question that someone had asked and here's what he said. He said his wife would get $2523/month (his current SS) and he has a $200,000 life insurance policy that he pays $160/month for now that she would get. He said she could live for the next 15+ years on all that. So she would be living on $1100/month plus his SS.

My frugal mind says....why spend every penny you're getting now? Why not scale down some of those things you're spending money on and sock it away as an additional cushion. Maybe I'm nuts since I learned a lesson the hard way.
 
@Colleen sometimes i feel like Scarlett O’hara in “gone with the wind”. I will never be hungry again!!!! It makes me crazy when I hear or see people spending every nickel of their incoming. I want to shake them. We seniors should all be considering what we are going to do if ss is decreased or stopped. And what we would do if our other needs increase. I will pay close to 8 thousand out of pocket for my two shoulder surgeries this year. Thank goodness I can.
 
Colleen said:
I was watching a channel on Youtube I had subscribed to a while back about this guy that was retiring before age 65 and he wanted to see if he and his wife, who already collects SS, can live mainly on SS. Every month he gives an update on their "living expenses". It's been about 8 months for him in retirement and he started collecting SS in January.

It's interesting because out of their combined SS income each month of $3783, they spend all but maybe $150-$200 a month. They don't have a mortgage but they have big ticket expenses like $1,000/month on groceries for just the 2 of them. They go to Costco/Sam's and buy bulk. Not just once in a while but every week. They also spend $250/month on cable. They spend $250/month on eating out. They also spend $100/month on lottery tickets. They spend all of it.

I kept wondering what his wife would do if he died first. The other day, he had a video addressing that very question that someone had asked and here's what he said. He said his wife would get $2523/month (his current SS) and he has a $200,000 life insurance policy that he pays $160/month for now that she would get. He said she could live for the next 15+ years on all that. So she would be living on $1100/month plus his SS.

My frugal mind says....why spend every penny you're getting now? Why not scale down some of those things you're spending money on and sock it away as an additional cushion. Maybe I'm nuts since I learned a lesson the hard way.
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You have to wonder what their spending habits were while working. Or maybe their goal is to have no nest egg so when they're shipped to the nursing home the state has to pick up the tab.
 
Biggest impact was/is 100% positive & it came in the form of Medicare. My retirement package came with health care plan paid for until I reached the age to apply for Medicare. After reviewing the options Medicare advantage worked best for us. When funding for retirement health care plan was not paid into an insurance carrier, that amount was paid into a HSA.

I've been & continue to be in reasonably good health, so has my wife. With health care cost destroying so many lives financially. I can say with out a doubt zero cost for health care for the 29 years in retirement is the biggest impact.
 
My biggest impacts have been unexpected expenses. I never expected to have to pay for foundation repair or multiple tree removals. In the past 35 years a tree or two would die a year and it was no big deal. This past few years climate change and bark beetles have done a lot of damage to trees, many in dangerous locations. I have to have a professional take those down.

You just can't plan for everything.
 
DebraMae said:
My biggest impacts have been unexpected expenses. I never expected to have to pay for foundation repair or multiple tree removals. In the past 35 years a tree or two would die a year and it was no big deal. This past few years climate change and bark beetles have done a lot of damage to trees, many in dangerous locations. I have to have a professional take those down.

You just can't plan for everything.
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I had to have trees removed as well. Then along came several new health issues followed by people not paying what they owe me. I was in better shape a year ago. If I felt a little better I could start selling stuff.
 
Slogging away at the same state government job for 31 years to get that defined benefit pension was the best thing I did for my retirement finances. People who job hopped all their lives and ended up with only social security sometimes say I'm lucky. Luck had nothing to do with it. I had a plan and I stuck to it.
 
Colleen said:
My husband retired when he was 61. He had a hard, physical job his whole life and at 61 he was worn out so he retired. I was pretty naive about SS and pensions and all that so when he applied for his pension, he opted to take the maximum, which left me with no survivor benefits. I don't think he understood that that's what would happen to me. He just didn't understand and neither did I. I get by but it's a big adjustment from $5100/month to $2100 (and I still have a mortgage payment out of that).
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Did you and him not understand that if your husband dies, you will be left with nothing? My dad did the same thing and when my dad retired my mom found out he left her out all ‘hell broke out. You had to sign that so you clearly didn’t know. What a shock that must have been. I must say though, that you’re handling it well. Did you say you still have a mortgage to pay?
 
While DH worked shift work, went back to school to finish his degree, then more shift work ahead, I took care of the finances. With some business courses in college I always knew it "takes money to make money" AND I am a planner. With 3 sons, I was careful to put $$ away for them AND for us - even if it was $5 a week (back in the 1980s) or $20 a month. We job hopped because projects came and went. He had pension accounts at 2 former employers and they ultimately offered the balance to us so, we created new IRAs.

Thus, a combination of things I guess - there were some big things. He was diagnosed with Parkinsons in 2014. We retired in 2017 and quickly moved north. He continued to get paid for 1-1/2 years because he saved up "leave", took un-paid family leave and spread (reduced) paychecks out over that long - while earning more leave since he was still on the payroll. He qualified for Fed. Disability in 4 months. We sold our house and one car to buy another house - then renovate it. We've done just fine with one car so far!! Plus dealing carefully with the small things along the way and saving for retirement.

My father died in 2020 and left me 1/3 of his IRA, DH gets his pension and we both now get Soc. Sec. We have NOT had to dip into ANY of our savings yet - OH, just once for a new roof and exterior painting during COVID. DH, forced to take his last pension at age 65 (whether he wanted it or not) also signed up for his FULL pension with no benefit for me when he dies but we discussed it and I signed it. He has a large life insurance policy that should cover anything I will need.

We were super lucky to have a Prudential Financial Rep. who worked with us in 2016-17. He set our investments up for us to live like kings! We are living our best lives, in our dream location! So blessed!!
 
PeppermintPatty said:
Did you and him not understand that if your husband dies, you will be left with nothing? My dad did the same thing and when my dad retired my mom found out he left her out all ‘hell broke out. You had to sign that so you clearly didn’t know. What a shock that must have been. I must say though, that you’re handling it well. Did you say you still have a mortgage to pay?
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My husband was dyslexic and he had a difficult time reading or understanding much of what he read. I probably read it but, at the time, it was all Greek to me. I should have had more sense and contacted the pension office before we made it "official". We were in the process of selling our house and getting rid of everything (!!!) so we could leave CA and head out in our RV, which we lived in for 3 1/2 years. All big changes at the same time and I wasn't very knowledgeable about financial things at that time. I had always lived paycheck to paycheck. No excuse for ignorance but that's what it was.

Yes, I still have a mortgage. We never lived in one place long enough to pay off a home. He never wanted an apartment or condo. He had lived in several in CA when he was a bachelor and always hated them. He wanted his own yard and the freedom to do whatever he wanted with a house. So, I have a mortgage payment. Luckily, we got it when the interest was at 3.5% and my payment is less then most apartment rates but it still a big chunk out of my SS.
 
Colleen said:
I was watching a channel on Youtube I had subscribed to a while back about this guy that was retiring before age 65 and he wanted to see if he and his wife, who already collects SS, can live mainly on SS. Every month he gives an update on their "living expenses". It's been about 8 months for him in retirement and he started collecting SS in January.

It's interesting because out of their combined SS income each month of $3783, they spend all but maybe $150-$200 a month. They don't have a mortgage but they have big ticket expenses like $1,000/month on groceries for just the 2 of them. They go to Costco/Sam's and buy bulk. Not just once in a while but every week. They also spend $250/month on cable. They spend $250/month on eating out. They also spend $100/month on lottery tickets. They spend all of it.

I kept wondering what his wife would do if he died first. The other day, he had a video addressing that very question that someone had asked and here's what he said. He said his wife would get $2523/month (his current SS) and he has a $200,000 life insurance policy that he pays $160/month for now that she would get. He said she could live for the next 15+ years on all that. So she would be living on $1100/month plus his SS.

My frugal mind says....why spend every penny you're getting now? Why not scale down some of those things you're spending money on and sock it away as an additional cushion. Maybe I'm nuts since I learned a lesson the hard way.
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It's possible they'd lose certain benefits if they have over a specific amount in their bank account(s). That's true of AFDC. If you accumulate over $2,000 in savings while you're on AFDC, your food benefit gets slashed to just a few bucks or even zero.

Maybe something similar happens when you're on SS.
 
Colleen said:
My husband was dyslexic and he had a difficult time reading or understanding much of what he read. I probably read it but, at the time, it was all Greek to me. I should have had more sense and contacted the pension office before we made it "official". We were in the process of selling our house and getting rid of everything (!!!) so we could leave CA and head out in our RV, which we lived in for 3 1/2 years. All big changes at the same time and I wasn't very knowledgeable about financial things at that time. I had always lived paycheck to paycheck. No excuse for ignorance but that's what it was.

Yes, I still have a mortgage. We never lived in one place long enough to pay off a home. He never wanted an apartment or condo. He had lived in several in CA when he was a bachelor and always hated them. He wanted his own yard and the freedom to do whatever he wanted with a house. So, I have a mortgage payment. Luckily, we got it when the interest was at 3.5% and my payment is less then most apartment rates but it still a big chunk out of my SS.
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I feel so bad for you. You should have asked for help. You obviously didn’t understand what you were signing which is a real shame.

Oh a positive note, you seem to be doing really well. If you can afford your house, try and keep it. It’s a good investment.

It’s good that you have such a good interest rate. Try and hang on to it.

I’m sincerely sorry that this happened to you.
You seem to be handling it so well. You’re a strong women Colleen.
 
Murrmurr said:
Yes. A small thing that unexpectedly impacts my retirement finances is ...in a word; cat.

The price of cat food and kitty litter went way, way up over the last couple years. A $7 flea collar costs over $30. A really good one costs nearly $70. I don't even wanna talk about vet bills.
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We live in a tick infected location and tick medication. Is $140 a month. It’s even more if you purchase it at a vets office. Taking care of pets can definitely be expensive.
 
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Health issues affected my retirement some, but buying houses has really put a dent in my plans.
I'm only getting rent off one house, my daughter and her family live in one and stepson lives in one.
I rent one to my ex-wife and I live in the other 2.
That's why I can't retire yet.
 
My second husband had full control of our finances and hid 3/4ths of our money. I married him young and he was older. So I was starting over at age 43.

My third divorce required everything to be split and my income was cut in half. So things didn’t turn out like I planned. Prices have skyrocketed where I live because the city has doubled in size and most the new residents are Californians with a lot of money.

I’m luckier than many as I have a small pension, small SS and am still able to work part time consulting. I know how to be frugal so I can spend money on the things that are important to me such as my 2 dogs.

Luckily I did a lot of traveling in the past so was able to finish my bucket list. I have either eliminated or substituted for cheaper items to keep expenses lower. I drive a 16 year old car. Downsizing to a condo was a good choice both financially, physically and emotionally. I have always been a realist so I know how to handle life changes.
 

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