Poll: How would you feel with $90k/year in retirement?

[NW-Bound]

Beyond basic food and housing needs, most of what people spend on are not truly necessary. I can spend quite a bit less than what I do now (which is less than 90K), if I have to. But I can easily spend 100x or 1000x more, as that takes no skills.

What most people spend in retirement is a continuation of their lifestyle when they were working. And that depends on their working income. It's that simple.

 

[Major Tom]

But I can easily spend 100x or 1000x more, as that takes no skills.

A nicer RV and more RV'ing stuff

Yes, I could certainly use the extra income

 

[NW-Bound]

A 100X factor, if applied to RV shopping, would mean a multi-million-dollar RV. I guess someone somewhere makes one like that, else I would be able to order a custom one, I am sure. As I said, spending money is quite easy, and I can also get used to having people kowtow to me.

On the other hand, as I have been a pedestrian all my life, I feel uneasy to even hire a house cleaner as it feels, well, just too imperialistic for lack of a better word.

PS. Yes, I would definitely need to have one custom made, because I would still like a small RV and no one makes a super expensive one that is so small. Solid-gold faucets and cabinet handles throughout?

 

[Alan]

For us $90k/year, inclusive of taxes but exclusive of SS, at age 55 provides an excellent lifestyle with lots of travel money so financial set-backs would cause a cut back on the travel budget.

I'm also assuming that $90k /year is COLA'ed, the COLA being taken care of by a SWR. I have non-COLA'ed pensions that bring in somewhat less than $90k, the difference being made up by nest egg dividends.

 

[Major Tom]

As I have been a pedestrian all my life, I feel uneasy to even hire a house cleaner as it feels, well, just too imperialistic for lack of a better word.

I'm drifting completely off-topic with this, but this is exactly the way I feel too. I know people of all income levels who hire cleaners - even at the very low end of the range, but I've always felt that if I make a mess, it's only right that I should clean it up. Somehow, I just can't bring myself to let anyone else clean up after me.

Glad I'm not the only person who feels that way.

 

[W2R]

For a single person living in the South with a modest paid off home, like me, I think it is impossible to spend even half that much without traveling or moving to a larger home.

 

[W2R]

I'm drifting completely off-topic with this, but this is exactly the way I feel too. I know people of all income levels who hire cleaners - even at the very low end of the range, but I've always felt that if I make a mess, it's only right that I should clean it up. Somehow, I just can't bring myself to let anyone else clean up after me.

Glad I'm not the only person who feels that way.

I just like my privacy too much to hire someone to clean my house. However, I do have someone to help with the mowing outside, because I can't do it any more. So I suppose that maybe at some point I will have to relent and hire a housekeeper (or else adjust my definition of "clean").

 

[Lsbcal]

All for me or do I have to share with DW?

Ask her and get back to us on the answer.

 

[NW-Bound]

I do not have problems with hiring people to trim trees or to do work on my homes that I could not do. But to have people to wait on me hand and foot feels uncomfortable to me. House cleaning is somewhat in the gray area, for me anyway.

But back on spending, our full-time income would allow us to spend in the low 6-figure when we were working, but we did not. It is the LBYM lifestyle that allowed us to ER.

And I am grateful that our cut-back level is still more than what other people spend. That makes me believe that we should be able to weather any hardship in the future (not that I would want it to realize, of course). Hence, I have been "party'ing". Me worry? Maybe I should "kick it up a notch", like Emeril likes to say, and spend more.

But, but, but that 1st class ticket price hurts like crazy, I do not know if I could stand it. Hence, have not had one paid out of pocket yet. I would need my portfolio to grow much more.

 

[Zathras]

The money is good, but there is no way I would wait till 60

 

[Bestwifeever]

off topic--We have had a "cleaning lady" (Chicago term) off and on through the years. Right now we are on, every two weeks, $75 a visit. Our small house has always been tidy (no personal messes for her to take care of) but it is really clean only after Gina's been here (hello dusted light bulbs). For us it is worth every penny and she would say the same as it is her profession.

 

[Midpack]

For a single person living in the South with a modest paid off home, like me, I think it is impossible to spend even half that much without traveling or moving to a larger home.

Just eat at Commander's Palace (and the like) every night, you'll be well on your way to spending $90K...

 

[Andre1969]

I didn't answer the poll because I really feel there are two parts to this. the $90K is part one. The age 60 is the other.

$90K would be plenty for us to live on in retirement, but there is no way I'm waiting until 60 to retire. (Currently 33, hoping to retire by 48)

Yeah, that's my sentiment, too. Personally, I'd be happy with a $90K pension in today's dollars, but definitely do NOT want to wait until I'm 60 to retire! I'm currently 42, thinking about going out around 47, depending on what the economy/stock market does.

FWIW, FireCalc tells me that at the rate I'm going, if I work til age 60 I'd have a 98.8% change of being able to live on 90K per year, anyway. And that's assuming zero for SS.

 

[W2R]

Just eat at Commander's Palace (and the like) every night, you'll be well on your way to spending $90K...

Nope, I'd be dead as a doornail if I ate food that rich every night. I have to restrict myself to one night a year at my favorite restaurant here. I love the food here, don't get me wrong, but in moderation! Living here is so different from being on a short vacation. Locals don't eat at Commander's every night, bare our breasts at Mardi Gras, or routinely get drunk on Bourbon Street.

Besides, why would I want to pay through the nose like a tourist, when I live here and know lots of places to eat great New Orleans food that I like better and that cost less? Tourist restaurants are in business to raid tourists' wallets, IMO.

 

[gauss]

What most people spend in retirement is a continuation of their lifestyle when they were working. And that depends on their working income. It's that simple.

And, of course, their working savings rate for the case of serious LBYM.

 

[NW-Bound]

I just looked up at the light on the ceiling fan above my kitchen table, as I type this post. No, no dust there, although the last time I cleaned that globe was when I changed the bulb inside, well over 5 years ago.

Wait, there's some. I guess we are not that picky.

Or could it be that my wife dusted it recently? Hmmm....

Whatever. If it works, I will leave it alone.

 

[WhoDaresWins]

I think $90,000 plus SS would leave me comfortably fixed in retirement.

I think having a cleaner is just fine if it frees up your time for some activity you prefer doing. I no longer have one, but I do hire a gardener who also plows the driveway and shovels the walks in winter. I also have no interest in learning auto mechanics, plumbing, electrical systems or HVAC so I hire professionals for those things.

 

[W2R]

I think $90,000 plus SS would leave me comfortably fixed in retirement.

I think having a cleaner is just fine if it frees up your time for some activity you prefer doing. I no longer have one, but I do hire a gardener who also plows the driveway and shovels the walks in winter. I also have no interest in learning auto mechanics, plumbing, electrical systems or HVAC so I hire professionals for those things.

I couldn't agree more!

I found a wonderful and reliable handyman, and that is a good way to spend money too (plus I love to give him work since he earns every penny). He isn't cheap but he is worth it to me. I think I'll have him replace my side door that sticks all the time, and work with his (very qualified, licensed) electrician buddy to put in an additional electrical socket in each of a couple of rooms. He can also add more bolts to my front door so that the next hurricane doesn't blow it open like Hurricane Isaac did. And then, maybe he can install sliding shelves in my under-counter kitchen cabinets. I am waiting until after the holidays for all this, though.

 

[David1961]

Much more than I would ever need. I've never come close to spending that much in any one year.

 

[NW-Bound]

Well, if you were one of the two Powerball grand prize winners last week, you would learn to spend a lot of money pretty quick. I think even a scroogy guy like me would know to adapt to this new economic condition. Doubt that spending 10x or 100x would make me that much happier though, but spreading the wealth around is the right thing to do, oui?

 

[Marita40]

I'd feel secure (for once).

 

[Original Wally]

We are somewhat below that with the CalPERS pension, which contains an UP TO 5% COLA adjustment. In addition, we are debt free and have 1/2 mil in investments. Also getting SS early (disability). We have MORE than we need. We have always lived a modest lifestyle, and are actually spending MORE than ever before and still not blowing through cash. Nice situation.

 

[Cheesehead]

I was excited when I saw the title of the thread since we are figuring around $100K with SS. But there needed to be some parameters, mainly if one's mortgage is paid off, if there is a COLA on any pension and if there is a health insurance benefit, perhaps from a union or the Feds.

I would think, and most people I know would envy us for having $100K per year, except 42% of our yearly budget is Housing (Mortgage w/tax and insurance, HOA fee & Utilities). The reason for this is because we took the profit from our sale (right before the crash) and did not put it in our new downsized house, we invested it instead. That's a mixed blessing but we have liquidity, did not lose money when everyone's equity vanished and are free to move to cheaper areas, but we now carry a large mortgage.

Is anyone else who is in the 90K area in the same boat? Most sources say you shouldn't have housing be more than 33% of your income. Even if you pay off your mortgage you will still have taxes, insurance, utilities and possible association fees.

So in sum, those fellow posters who answered above that 90K is cool, what percentage of your annual income will be housing and health? Those two categories may amount to 54% of our budget unless we move to a cheaper home and stay healthy. I'm 59 and will retire in two years and DW in five and she will have a pension with a 3% COLA. We live in a state capitol and the area is expensive.

Thanks

 

[Bestwifeever]

I couldn't agree more!

I found a wonderful and reliable handyman, and that is a good way to spend money too (plus I love to give him work since he earns every penny). .....

So true, a good handyman most definitely is worth at least his weight in silver now that gold is off the charts. And bonus, his electrician friend.

 

[Original Wally]

I should add that we have EXCELLENT post retirement benefits. I am too embarrassed to say. Sufice to say that EVEN WITH major health issues we come NOWHERE CLOSE to exceeding the 7.5% floor for deductibility. NOT EVEN CLOSE