Poll: Retirees, how adequate is your retirement income?

[rodi]

I selected the goldilocks option - just exactly what I need.

We have some income streams outside of withdrawals - rent, SS for DH, SS for the kids (which is fed straight into their 529's). But we're still withdrawing 3.5%. Since I'm relatively young (54) and the kids aren't launched yet... I'm nervous about taking more out. But we have a nice life with what we have. Just right.

If the market goes on a tear up or down I'll spend more or cut back more.

 

[FIREd]

Right now, things are a little tight - living in expensive San Francisco and all. Rent eats a lot of our income and we have little left to spend elsewhere. So "I have a little less than I'd prefer to spend", and "I might want to do something like kick up the LBYM", which for us means moving away from the bay area to cut our housing costs by 80%. After the move, we should be able to go up one or two levels in the poll.

 

[Major Tom]

Tom, it pains me to see you procrastinating on the RV, year after year. I understand some reluctance due to your tender age, but you have to know that the "no SS" fear isn't realistic. If SS isn't there for you in 10 years then you (and the rest of us) will have problems far greater than wishing you hadn't purchased and enjoyed using that RV for the past decade.

Thanks REW. I don't have any fear of SS not being there, and actually think I'll get most, if not all, of the amount that is currently estimated. There are a few other factors holding me back. Like most things, it's a complex equation, though some would say things are only as complicated as you make them.

I guess I'm just experiencing "OMY RV" syndrome

I won't bore y'all with the several reasons for holding back. Some are financial, and some are personal, and I'm a little weird about sharing those sorts of things - even in a semi-anonymous forum like this. In the meantime, I watch RV'ing YouTube channels and read RV'ing blogs to excess - but it still ain't quite like the real thing.

 

[splitwdw]

Thanks REW. I don't have any fear of SS not being there, and actually think I'll get most, if not all, of the amount that is currently estimated. There are a few other factors holding me back. Like most things, it's a complex equation, though some would say things are only as complicated as you make them.

I guess I'm just experiencing "OMY RV" syndrome

I won't bore y'all with the several reasons for holding back. Some are financial, and some are personal, and I'm a little weird about sharing those sorts of things - even in a semi-anonymous forum like this. In the meantime, I watch RV'ing YouTube channels and read RV'ing blogs to excess - but it still ain't quite like the real thing.

Didn't "know" that you had RV in your blood. I think I remember that you are a renter. Where would you park it? Wouldn't it be expensive to rent parking year round? Couldn't you just rent an RV on occasion? I know nothing about RV's so just ignore me..

 

[Major Tom]

Didn't "know" that you had RV in your blood. I think I remember that you are a renter. Where would you park it? Wouldn't it be expensive to rent parking year round? Couldn't you just rent an RV on occasion? I know nothing about RV's so just ignore me..

I've been thinking about it a lot ever since 2009, when I stopped working. I have never RV'ed before, and haven't done very much tent camping in my life either, but it has gripped my imagination so much that at this point, I can hardly dismiss it as a passing phase.

Yes, I'm a renter, with only street parking available, so would need to factor in the price of parking/storage. I can justify the purchase cost of an older used class C or class B, but the combined running costs (including parking and maintenance) push my budget more than I'm willing to allow at this stage.

However......my rental situation may come to an end at some point. It's a small studio in an old converted house. It's a lovely old house and a pleasant place to live, but there is a lot of deferred maintenance. The owner is elderly, and when he's either no longer able to run it, or is no longer around, I think there's a high chance that it will end up being torn down to make way for a new apartment building - or it will be bought by someone who wants to live in it and can easily afford to pay for the restoration. Either way, I'll be out of a place to live, which will be wonderful, as it will be the perfect excuse to move full-time into an RV.

So, to cut a long story short, I cannot justify the cost of an RV/motorhome for occasional use. I'd love to try full-timing though. It would be a mix of urban and rural boondocking, with the occasional stay in an RV park. Trouble is, my rent in this nice old house is so cheap in this expensive metro area, that I am not about to willingly give it up. Basically, I am sitting around waiting for my current living situation to fall through so that I will be "forced" to go live in an RV with my cats.

I haven't considered renting an RV, due to the cost. It's definitely not cheap, and I doubt they'd allow me to bring along my cats.

Apologies for the thread hijack.

 

[daylatedollarshort]

I often forget (and can hardly believe!) the prices of houses in the Bay Area. Every month or two I "go there" on realtor.com and it is just mind boggling to me. I thought houses were expensive in Berkeley back in the 1960's when I lived there, but wow - - they are just through the roof there. And SF? The prices there just make me laugh these days.

SF prices actually dropped a bit recently:
Bay Area Home Prices Drop For First Time in Four Years - Curbed SF

 

[Shanky]

I voted for "I have a lot more than I can spend", but it's more like "I have a lot more than I am willing to spend". For now since this is my first year, I am willing to spend about 50-60% of what FireCalc and other planners say I could. (My high end projection for this year is less than 50% due to the strong USD against CAD.) Believe me, I would like to spend more than I am spending right now, but I am being cautious. In a few years, once I get a hang of this, and if it all looks good, I will be spending more.

W2R, I love those polls!! Thanks for setting it up.

When someone needs an income that is half of what firecalc indicates is 100%, they can literally put it in a mattress and pull out what they need for 30+ years assuming inflation of 3%. No worries on investment risk. Just worry about roaches eating the piles of cash or very high inflation.

 

[W2R]

SF prices actually dropped a bit recently:
Bay Area Home Prices Drop For First Time in Four Years - Curbed SF

Now that's interesting! I never would have expected it. Still, real estate prices are shockingly high there and I should have thought of that before recommending a dream house to Major Tom. Oops.

 

[W2R]

Right now, things are a little tight - living in expensive San Francisco and all. Rent eats a lot of our income and we have little left to spend elsewhere. So "I have a little less than I'd prefer to spend", and "I might want to do something like kick up the LBYM", which for us means moving away from the bay area to cut our housing costs by 80%. After the move, we should be able to go up one or two levels in the poll.

Most definitely! I think you will be pleased with the decrease in cost of living after you relocate.

 

[NW-Bound]

Major Tom can have his dream house, but it just has to be out of the SF area. And maybe it should have wheels.

 

[W2R]

Major Tom can have his dream house, but it just has to be out of the SF area. And maybe it should have wheels.

Something I discovered last year, was that moving costs enough all by itself to be a bit of a strain on the withdrawal rate.

Oh well. I got what I wanted and I could afford it. I keep telling myself that.

 

[MichaelB]

Something I discovered last year, was that moving costs enough all by itself to be a bit of a strain on the withdrawal rate.

Oh well. I got what I wanted and I could afford it. I keep telling myself that.

Well, it's a one time expense, so as long as it doesn't damage your continuing withdrawal rate, no big deal. Besides, how many times in your life do you get such an opportunity?

 

[W2R]

Well, it's a one time expense, so as long as it doesn't damage your continuing withdrawal rate, no big deal. Besides, how many times in your life do you get such an opportunity?

Exactly! That's what I keep telling myself. It's just hard to change one's ways. I'll still be able to manage on a WR of less than 2.5% once my expenses settle back down to where they were. Which they will, because my house expenses are about the same now as they were at my old house.

 

[NW-Bound]

People here who managed to retire early tend to be frugal, unless they hit some kind of a jackpot like inheritance or a big stock win. So, we tend to forget that we cannot take it with us. One delays his/her gratification, but till when?

I am not that old, but I desire fewer and fewer things. I have been thinking that when I hit 70, I will not care that much about travel anymore. Even now, I am not as gung ho about travel as I was just a few years ago.

 

[Major Tom]

Major Tom can have his dream house, but it just has to be out of the SF area. And maybe it should have wheels.

Yes, wheels will be a must. I have done shockingly little travel within the US, and that situation really needs to be rectified. I want to get out and see more.

Well, it's a one time expense, so as long as it doesn't damage your continuing withdrawal rate, no big deal. Besides, how many times in your life do you get such an opportunity?

+1 - for the same reason we often tell folk who are trying to LBYM, to pay attention to their recurring expenses. It's quite surprising how a one-time expense, even if it seems fairly significant, can be accommodated by a portfolio but those regular monthly expenditures, even if moderate, make a very tangible difference over the long term.

In other words W2R, a big thumbs-up to your most recent house purchase

 

[Car-Guy]

I voted "I have just about exactly what I need, no more, no less.'". My logic is that I've adjusted my lifestyle to my net worth/income. I don't try to live below or above my means. To be honest, if I had another million, I doubt if that would change anything. However, if I had 10 more million, things might change.

Which raises an interesting question to me (maybe I'll start a poll). How much would your net worth and/or income have to go down before it would cause you to adjust your current lifestyle. 5%, 10% 25%, MORE?

 

[Walt34]

Which raises an interesting question to me (maybe I'll start a poll). How much would your net worth and/or income have to go down before it would cause you to adjust your current lifestyle. 5%, 10% 25%, MORE?

At the moment about 35% or perhaps more, the reason being that SS is just coming fully online this month. We've been fine without it and have even been saving some with just the pension, not touching savings/investments yet.

It'll be a bit over $2k/month net and we haven't the foggiest idea what we're going to do with it. But I'm sure we'll think of something.

 

[Major Tom]

It'll be a bit over $2k/month net and we haven't the foggiest idea what we're going to do with it. But I'm sure we'll think of something.

More cameras/lighting gear/lenses? (For your share of the extra money, of course!)

 

[Teacher Terry]

I think you should not put off the things you want to do because for some people tomorrow never comes. This has really hit home for me as 2 of my friends died in 50-60's and one at 64 is in a nursing home. Also studies show that most people don't want to travel very much after age 70.

 

[eytonxav]

If the current nest egg doesn't get depleted too much, DW and I, while waiting to take SS and receive a very small fixed pension, should be in decent shape. At this point I'm not sure if that will leave us with a lot more or a little more than needed, but we hope for the best. We have a DD living at home with health issues and that accounts for a big unknown future expense, although she has been doing better lately. All the money in the world doesn't mean much if family members are suffering with health issues.

 

[calico1597]

We're somewhere between the first two. My pension & SS is excess, goes into savings each month. We're living good on DH pension. As time goes on, I find myself spending more. No more thoughts of, we can't buy this, we're retired and on a pension. It took a couple years to reach this point. I'm not wasteful, but think it's awesome that I'm being paid to stay home!! Five years into retirement, haven't had need to get into our retirement savings yet.

 

[HpRyder]

Investments are generating just under 2.5 X what my wife made when she use to work.

 

[Dan4495]

I'm not retired, but not surprised at the stark difference in these survey results to many of those published by the financial analysts and the like. This poll indicates that over 94% of respondents have at least what they need to meet their needs in retirement. Contrast that to the reality that many in the populace are totally unprepared financially for retirement, many are oblivious to that fact, others perhaps victim of circumstance, while here on this board the LBYMers almost all have the life they want or at least need in retirement. What a difference planning and often frugality makes in our golden years.

 

[Lsbcal]

According to VPW we are underspending. I put in a last withdrawal age of 110 and it says this year we can spend 4.4%. Will probably be in the 3% to 3.5% area. So we are in the "have plenty" category.

By design, I want to have a good cushion to the end. Fewer worries about getting near the edge on anything. Then our son can take over. Saves me from worrying about how he'll do in his older adult years. Not that he is doing badly.

Just got back from San Diego and Maui. Have got more generous on tips. More domestic trips planned this year. Life is good.

 

[sheehs1]

While I am formally "retired", due to income sources from a family business started by our parents and that I am remain "involved" in (Board member, own stock, etc.) I have not yet had to rely solely on my savings/investments to support my lifestyle. So, I am still in savings mode because (1) I can still save and (2) I have a goal I still want to reach which makes me feel more comfortable should something happen to the business.

But, if I took 3% of current investments, I would have more than enough with that plus other income sources such as Board Fee and projected SSN. Somewhere like twice plus as much. I just can't seem to relax and get out of savings mode!

I did not vote in the poll since I am not currently living off my investments.