Need an Idea of what to look forward to.

[James101]

HI all, 1st time poster, love the site by the way.
Currently in Grad school & a civil servant employee. IM loking to stay in government as I have a pretty awesome retirement set up. To sum it up in a short sentance,
Lets say by age 62(Currently 30) I can retire with 90% and 64 with 100% plus full medical paid(meaning I only pay visits ).
SO with that being said I'm just curious as to what people over 60, retired etc have to pay for other then the norm(bills, expenses).
Obvious is Car insurance, vehicle, rent/mortgage.
I'm just trying to get a heads up as I still plan on getting a Roth IRA by next year maxing out per year. Assuming I can collect over $4k a month and maintaining the quiet lifestyle I have it would be a cake walk as long as no serious injuries or medical issues hit me. ALl I Can notice from my grandparents is my grandfather gets free medical pension + SS benifits, while my grandmother(Life time homemaker) gets medicare she pays for.
They have a quiet lifestyle but thier rates seem to be from 20 years ago as now things inflated so thier monthly checks seem small.

Thnx for any and all input.
Thnx.

 

[Rustic23]

You might try these:

http://www.early-retirement.org/forums/f29/what-do-you-spend-in-retirement-25148.html

http://www.early-retirement.org/forums/f28/new-study-what-people-spend-in-retirement-15837.html

 

[crazy connie]

If you buy a basic simple home and pay it off then the monthly checks (as in your grandparents case) only need to cover some basic utilities, tax and mtc on the home and health care co-pays and groceries. Simple life with some income and SS is very comfie when the needs are modest. So save early and often, live within your means and enjoy life along the way.

 

[W2R]

I am 61 and plan to retire very soon. With a paid off house and car, some of the things I will be paying for are:

Property tax
homeowner's insurance
home maintenance
home improvements
car insurance
car maintenance, gas, oil
car repair
medical insurance and co-pays
gym fees
usual bills such as utilities and cable internet
gardener, snow shoveler, handyman, and housekeeper at some point (since it is harder for older people to do these things)
Occasional travel
clothing
hobby materials
gifts

I don't expect that my expenses will be as high as before retirement.

 

[crazy connie]

Clothing costs & dry cleaning drop big time. Travel can be around the less expensive time that is less crowded. Car mtc can be less unless you are a road trip person. Groceries cost less when you have the time to cook basic slow food without the hurry up items. Matinee tickets are a good bit less than weekend evening shows. Many areas cap retiree property taxes. Senior discounts abound.

I tend to enjoy having friends & family in for a home cooked meal and some who are still working reciprocate with taking me out for lunch or happy hour.

Some folks do a lot of volunteer work and others just pursue simple things like reading, woodworking, sewing. Many presents are gifts from the heart and hands. It is all about what you want to do in life and having the time and health to do it!

 

[Rich_by_the_Bay]

James, with thei obvious exceptions of higher medical expenses there probably are few differences related to age itself. Retiring brings about the disappearance of retirement savings for most, adds a little more leisure and travel expenes, reduces work-related expenses like commuting, business garb, etc.

Can't speak for anyone else, but we're planning for no change in living expenses with retirement.

 

[Rustic23]

Rich,
I think our case is similar to what you expect. We have less expenses in some area, and more in others, however our total expenses are within 2% retired to what they were before we retired.

 

[Amethyst]

We, also, expect no drop in expenses after my retirement (husband is already retired). That is why we are LBYM-ing now, to pay off the mortgage before I retire.

Property taxes, medical expenses, and services (anything you pay others to do, rather than doing it yourself) all go up steadily; in some years, exponentially. Common sense tells us we will require ever more services as we age.

And as long as I'm in cautionary mode, here's another cautionary note: My husband's Federal Govt pension gets the same COLA as the Social Security recipients get. In other words, NO COLA in 2010, and likely none in 2011 either. When he retired in 1995, his pension (including the survivor benefit reduction) was one and one-half GS-grade equivalents higher than it is now. He's effectively been demoted 1.5 grades in 14 years of retirement! To me, that spells: 1) My anticipated Federal pension will not hold its value over time; and 2) Survivor benefits won't, either. Inevitable conclusion? Save and invest! Be glad about your pension, but don't count on it funding a 30 or 40-year retirement.

Good luck! Good for you, getting your ducks in a row at age 30.

 

[Bimmerbill]

You must be law enforcement, or some other special retirement plan. I'm under FERS and can only get 30 or 35% of my salary as pension.

Also, remember that you have a time frame of 30 years, and A LOT of things can happen. They could change the pension system, benefits, etc.

 

[ziggy29]

I'd say to plan for the possibility (likelihood is more like it) that your personal rate of inflation will significantly outpace the CPI.

 

[Rich_by_the_Bay]

The other point that has come up before on the board: it is fantastic that you have such clear plans for retirement, but a 25 or 30 year time span is such that most of the details will change (some many times over) in that period of time. Pensions and compensation will change, health care costs will change, social security and medicare will change, etc. And then there are your personal life changes, family, kids, other suprises.

So in your shoes I'd focus on saving early and amply, getting into the stock market broadly, and avoid p*&*#ing your youth away by over-doing the LBYM thing. Your early insight and obvious discipline will assure that the details fall into place.

 

[IndependentlyPoor]

What Rich said!

There are some things that are much better done when you are young, if not downright impossible later. Touring Europe with a knapsack and staying in hostels when you are in your 20s is very different than when in you are in your 60s or 70s and staying in hotels. Hiking/skiing the alps, snorkeling in the Caribbean, boogeying in the boîtes of Cap d'Agde: all very different (and I would claim better) when you are young.

LBYM, but don't forget to live a little.

Auntie mame signing off.

 

[bbbamI]

My version of....

Need an Idea of what to look forward to.

Forgetting where you put your keys...
Falling asleep in your chair...
Hearing various body parts snap, crackle and pop...
Falling asleep at the table...
Getting cranky....