Average Spending in Retirement

[Blue Collar Guy]

Medicare will cost you 10K/year for 2 people (DW pays $134 for part B, $180 for a medigap supplement, $32 for part D prescription and around $50 drug co pay). When you add dental cost it could run you about 15K/year (for the last three years since I retired we've averaged 8K/year in dental work).

We get slapped around in the dental department too. The last time I came home and tried to cry to the bride about it being 4K. I figured I would get some sympathy. She told me "If we didnt have the money, then you could complain", "Thats why we saved it right?". I feebly answered "yes Dear". I then went down stairs to my mother to cry about it. Hahahaha, mom felt bad for me

 

[ER Eddie]

Wow, I guess the discussion about money is off the table here at FIRE. What's the point of signing on?

Sorry, I was a bit obnoxious, in return for what I perceived as obnoxiousness on your part.

Money is hardly off the table as a discussion topic here. In fact, it tends to get talked about extensively. Obsessively even.

 

[street]

We live nicely on 3300 a month. I budget 4000 and could easily get be less then 3300 but no need too.

 

[Danmar]

It's all relative. There's really no absolute.

I've been saying this here for years to little avail. People always seem to have strong opinions on how much and on what other people should spend their money.

 

[Danmar]

I always try to find ways to blow more dough.

I don't have to try very hard, they seem to present themselves on a regular basis.

 

[Nightcap]

I read some MR money Mustache posts, I stopped when I read some of them dont shower regularly to save on hot water. Thats not my style.

The attitude I get from MMM's devotees is that you're a voluptuary if you replace a car while it still rolls and you can still bribe your garage to issue an inspection sticker.

My "thus far and no further" amount is $8K per month, all in. I was a little above that in 2013 and 2014 (maintaining two houses and lots of driving), but well under ever since retiring.

 

[Fermion]

We get slapped around in the dental department too. The last time I came home and tried to cry to the bride about it being 4K. I figured I would get some sympathy. She told me "If we didnt have the money, then you could complain", "Thats why we saved it right?". I feebly answered "yes Dear". I then went down stairs to my mother to cry about it. Hahahaha, mom felt bad for me

Since ACA really makes no provision for dental care (which is weird because they all advertise that dental care is tied to your general health), what do truly poorish people do?

If someone actually only had SS income and not some 2% SWR from a big portfolio, how do they handle a $4k or $8k a year dental bill in addition to the other stuff?

 

[MichaelB]

Lower income people go without dental care and lose their teeth. From the CDC https://www.cdc.gov/oralhealth/publications/factsheets/adult_oral_health/adult_older.htm

About 25 percent of adults 60 years old and older no longer have any natural teeth. Interestingly, toothlessness varies greatly by state. Roughly 42 percent of Americans over age 65 living in West Virginia are toothless, compared to only 13 percent of those living in California

 

[wyecrabber1]

Not sure DW and I could live on $2800 a month, we dine out too much. We both worked too long to be able to enjoy our retirement.

Bureau of Labor publishes expenditure data every couple of years -- it is to be update at the end of the month.

Below are to links for the US population and the segment 55 and older;

https://www.bls.gov/news.release/pdf/cesan.pdf

and

https://www.bls.gov/opub/btn/volume-5/pdf/spending-patterns-of-older-americans.pdf

 

[Corporateburnout]

If someone actually only had SS income and not some 2% SWR from a big portfolio, how do they handle a $4k or $8k a year dental bill in addition to the other stuff?

Medicaid covers dental work if they qualify for it. If not they will have the tooth pulled and live without the implant or the crown.

 

[Blue Collar Guy]

Since ACA really makes no provision for dental care (which is weird because they all advertise that dental care is tied to your general health), what do truly poorish people do?

If someone actually only had SS income and not some 2% SWR from a big portfolio, how do they handle a $4k or $8k a year dental bill in addition to the other stuff?

They get their tooth pulled. Maybe get a bridge, implants are out.

 

[jkern]

Home is paid off, Living in SF Bay Area, Retiree health insurance $5k/yr and wife is still working with health insurance $0/yr.

For me:

Essentials (house, utilities, food, health, transportation):~ $25k per year

Spending (routine, travel, gifts, recreation and entertainment, clothes,
non-routine, buying new stuff, replacing old stuff, home and garden, kids getting
married and other stuff): ~$25k per year

Add wife:

Essentials: ~$15k per year
Spending: ~$20k per year

Total: ~$85K per year (not including tax)

 

[Blue Collar Guy]

Home is paid off, Living in SF Bay Area, Retiree health insurance $5k/yr and wife is still working with health insurance $0/yr.

For me:

Essentials (house, utilities, food, health, transportation):~ $25k per year

Spending (routine, travel, gifts, recreation and entertainment, clothes,
non-routine, buying new stuff, replacing old stuff, home and garden, kids getting
married and other stuff): ~$25k per year

Add wife:

Essentials: ~$15k per year
Spending: ~$20k per year

Total: ~$85K per year (not including tax)

This is how I like to do a retirement budget. Lump things together, get a ballpark figure. If its less than the amount Im allowed to spend Im good till next year.

 

[Rianne]

Ok, I broke down monthly fixed expenses:

Cable/Internet/landline phone and 2 cell phones - $225
Utilities on average - $200
Life insurance and property insurance - $521
Health and dental - $623 (does not include deductible or copay)
YMCA - $72
Garbage removal - $21
Sewer - $25
Water - $60
House, Car, Umbrella insurance - $134
Well Fargo no interest loan for remodel - $132
Own home, own cars
Total - $2013

So where does 3000-4000 go? Dogs, food, travel. I hate to shop, rarely buy clothes (buy good clothes that last). Dam it's the little things that just add up. I volunteer at forest preserve which is free fun for me. I love it. I take classes that are super cheap through university for seniors. We do the cheap movie time $5.75/ticket. We do splurge on fresh flown in fish and grass fed, free range meat. Have a garden and both of us are fairly healthy.

I guess we're pretty normal. No one I know, family or friends talks about money. They're so anal about sharing info. So I'm here

 

[W2R]

Since ACA really makes no provision for dental care (which is weird because they all advertise that dental care is tied to your general health), what do truly poorish people do?

If someone actually only had SS income and not some 2% SWR from a big portfolio, how do they handle a $4k or $8k a year dental bill in addition to the other stuff?

Lower income people go without dental care and lose their teeth. From the CDC https://www.cdc.gov/oralhealth/publications/factsheets/adult_oral_health/adult_older.htm

About 25 percent of adults 60 years old and older no longer have any natural teeth. Interestingly, toothlessness varies greatly by state. Roughly 42 percent of Americans over age 65 living in West Virginia are toothless, compared to only 13 percent of those living in California

Oh gosh... this is so sad! I feel so fortunate to be able to afford keeping my teeth. I am 69 and have all of them, though some are implants. My perception is that Louisiana is kind of a poor state, so I would imagine that our percentage of toothless seniors is probably closer to that of West Virginia, than to that of California.

A few times I had to go on a soft diet briefly, due to tooth extractions prior to implants. It's awful after a day or so. I can't imagine spending the rest of my life eating mushy stuff.

 

[Moemg]

I could live on less a month but why ? I am not getting any younger and I hate to burden my daughter with a large inheritance .

 

[Blue Collar Guy]

I could live on less a month but why ? I am not getting any younger and I hate to burden my daughter with a large inheritance .

I love it!, Enjoy

 

[Nemo2]

I hate to burden my daughter with a large inheritance .

You are obviously a noble and benignant woman.

 

[W2R]

Ok, I broke down monthly fixed expenses:

Cable/Internet/landline phone and 2 cell phones - $225
Utilities on average - $200
Life insurance and property insurance - $521
Health and dental - $623 (does not include deductible or copay)
YMCA - $72
Garbage removal - $21
Sewer - $25
Water - $60
House, Car, Umbrella insurance - $134
Well Fargo no interest loan for remodel - $132
Own home, own cars
Total - $2013

So where does 3000-4000 go? Dogs, food, travel. I hate to shop, rarely buy clothes (buy good clothes that last). Dam it's the little things that just add up. I volunteer at forest preserve which is free fun for me. I love it. I take classes that are super cheap through university for seniors. We do the cheap movie time $5.75/ticket. We do splurge on fresh flown in fish and grass fed, free range meat. Have a garden and both of us are fairly healthy.

I guess we're pretty normal. No one I know, family or friends talks about money. They're so anal about sharing info. So I'm here

There are so many expenses. Not only dogs, food, and travel, but also income tax and gasoline. Overall it looks like your expenses are pretty reasonable.

 

[Rianne]

Medicare will cost you 10K/year for 2 people (DW pays $134 for part B, $180 for a medigap supplement, $32 for part D prescription and around $50 drug co pay). When you add dental cost it could run you about 15K/year (for the last three years since I retired we've averaged 8K/year in dental work).

Really? Medicare is that much?

 

[REWahoo]

Really? Medicare is that much?

Our medicare runs about 60% that amount. We have high-deductible Medigap plans which save us a couple of thousand a year over the numbers quoted.

 

[MissMolly]

Really? Medicare is that much?

Ours is much less also. Medicare - 134.00 x 2. PPO Advantage Plan for husband ($320 deductible/MOOP - $1,000) - $67. Mine paid by pension plan. Total for the year - $4,020.

 

[NW-Bound]

I always try to find ways to blow more dough.

I don't have to try very hard, they seem to present themselves on a regular basis.

I only started to track expenses since 2010 using Quicken. We have always been LYBM, but coming here to this forum I saw that when your means got curtailed in retirement, you needed a better handle on expenses.

My expenses have been running higher than I initially expected, but still lower than what FIRECalc said it could be. I believe that having that upperbound in mind, I permitted myself to spend more on non-essential items, such as home upgrades, my daughter's wedding, travel, etc... So, they are not really surprises.

Lower income people go without dental care and lose their teeth. From the CDC https://www.cdc.gov/oralhealth/publications/factsheets/adult_oral_health/adult_older.htm

You beat me to it.

... A few times I had to go on a soft diet briefly, due to tooth extractions prior to implants. It's awful after a day or so. I can't imagine spending the rest of my life eating mushy stuff.

Implants may work out a lot better than dentures in old age. My late FIL's dentures no longer worked for him when he got older. Several dentists said his gums shrunk and nothing could be done. So, he ate soft food for his last few years.

The nursing home would put everything through a blender. Everyday, my wife brought him a specially made home-cooked meal that was soft enough for him to eat. He also had problems swallowing, as most older people do. So, it was more than just not having teeth.

Arghh! Talk about this depressing stuff with old age makes me want to go out and blow more dough, like Robbie does.

Hey Robbie, you need to check out that real Japanese certified Kobe beef, not just American Wagyu-like beef. If it is not available in the US, that's an excuse for you to travel to Japan, and blow even more dough.

I could live on less a month but why ?

People are usually afraid that they may spend too much then run out in their old age. I have been thinking that if that happens, I will find a way to cope.

My problem is that I love to "count" my money, and to see it grow. Looking at that increasing number at the bottom left of my Quicken screen brings a warm and fuzzy feeling to this heart. Any enjoyment obtained from luxuries will be countered by the unpleasantness of seeing that number shrinks.

It's not the fear of running out. It's the sadness of seeing it diminishing.

 

[daylatedollarshort]

My problem is that I love to "count" my money, and to see it grow. Looking at that increasing number at the bottom left of my Quicken screen brings a warm and fuzzy feeling to this heart. Any enjoyment obtained from luxuries will be countered by the unpleasantness of seeing that number shrinks.

It's not the fear of running out. It's the sadness of seeing it diminishing.

I like seeing the portfolio grow as well. I think of my bargain hunting and expense optimization in the same light as having a hobby job for extra income only I don't have to have set hours, take classes to stay current or pay taxes on most of the money I save and it is a fun hobby. DH and my friends like it because we go out often to interesting events and it doesn't cost much.

 

[Blue Collar Guy]

My mother pays 104.90 a month for medicare. $3.13 a month for the 20 % gap insurance. She went to work after my Father died. Retired from cooking in a public school at age 73, her pension check takes the $3.13 a month out of her check. She also has I think $147 co pay for one of them and I think $165 deductible for the other. Prescriptions are usually $5 or 30 % each, she spent about 800 on prescriptions last year. So between the 2, my widowed mother is at $2400 a year. My dead broke uncle thru marriage is at zero. He pays a big fat nothing. They even pay his cab fare to the hospital.