I've been retired a year so I'll give you an answer based upon my expenses, not income.
They are about 105% of my expenses at this time last year. These are due to:
- Increased vehicle costs. Before retirement, we had 3 vehicles (between my wife/me). Now we have four (won't go into the reasons).
- Upgraded from basic TV cable service to satallite, with additional services. We're on our second HDTV over the last 5 years, but our cable company still could not get us HD service. I really don't watch that much TV (in retirement) but I just got "fed up" with the cable service, which increased my cost. No, I don't have any preimum channels, but my basic subscription cost increased, albit with a great increase in service.
- Of course, fuel costs increased. Even though I drive much less these days (volunteer work 2x week) the cost increased. BTW, just returned from the Netherlands this month, where the price (converted from liters/euro) came out to slightly more than $9/gal.
- Monthly electric bill has gone up slightly ($25/mo) due to my being home and having more "stuff" on during the day. My pups did not use the computer during the day - however I do
- Medical insurance (I get it from my former employeer) increased by $4 (2x$2) this year. Ok, I'm lucky (this year) however it was an increase over last year.
- Spent a bit more on the homestead, since now I have time to apply more weed killer, plant a garden, etc. Nothing of note, but it all adds up.
- Travel remains the same. Did a Danube cruise last fall, did our Benelux trip earlier this month, off for a west coast trip in October (we're on the east coast), and are doing the planning for Australia next June. Believe it or not, these are just "normal expenses". Unlike many others, we've been traveling (international/US) the last 12+ years, so this is just a "fixed cost
" for us. My wife (not me - did too much when I wor*ed) has a "passion" for travel and says we need to do it while we (physically) can.
For those who forecast that they will spend less, the only comment I have to say is plan on 100% of your current expense payout (if you are still employed). If you find you don't spend as much, you will be much better off. However, if you decide to retire (or RE) and then find out that you can't live the life you planned (due to lack of $$$) you will be quite disappointed in your "life". We've been a bit "consertative" in our planning, and luckly this has been in our favor.