How has your spending changed after retirement?

[HI Bill]

In the last year before ER, I was saving 51% of my income, so our spending was super low.

% of last w$rking year spending in ER:

2021 - 341%
2022 - 275%
2023 - 455%
2024 - 540%
2025 - 569% (estimate)

Blow that dough! Seriously, though, I had a 62-year old friend die last year. I thought, what am I waiting for! VPW all the way for us!

 

[street]

We have increased spending in the 8 years I have been retired. I would say not as much as when we were both working. It casts money when you are working on things you need and raising a family etc..

But, in ER the first few years we were pretty careful on spending but after the first few years our spending has increased.

 

[MC Rider]

Retired less than 2 years, so careful or nervous is still the word. Spending less on gas, less on restaurants, less on property tax. The big one is spending zero on mortgage, which I love.

 

[zangbao]

Spending in my second year of retirement is on track to be most I will have spent in my life so far. Over half will be on travel expenses.

 

[Midpack]

Comparing spending before and after retirement is kinda meaningless. All that really matters is how comfortable you are that your WR will see you through, not what % over/under you are.

All amounts without taxes because Roth conversions temporarily distort total spending:

• 2008-2011 (both still working) - $59.8K/yr average
• 2012-2018 (me retired, DW still working) - $60.9K/yr average - up 2%
• 2019-2023 (both retired) - $88.9K/yr average - up 49%

But we planned to spend more, moved and bought a bigger home in a higher COL area in 2019. Our WR is still 1-2% year, and it will be considerably lower once I stop Roth conversions and we start Soc Sec and RMDs. That's all that matters...

 

[Koolau]

Sometimes I wish I'd tracked my spending before and after FIRE. I guess it doesn't much matter, but it would be fun. I just know by how much we're taking out of the 401(k) and receiving from SS we're spending a lot more! YMMV

 

[motley]

Not sure if this merits another thread or not, but I'm curious how people's spending relates to what's coming in, like spending less or about equal or more than what's coming in? If more, about how much? etc.

My retirement estimates have me spending less than just SS and pension alone, but I'm paranoid that my estimates are too conservative.

 

[Koolau]

Not sure if this merits another thread or not, but I'm curious how people's spending relates to what's coming in, like spending less or about equal or more than what's coming in? If more, about how much? etc.

My retirement estimates have me spending less than just SS and pension alone, but I'm paranoid that my estimates are too conservative.

My parents survived on their SS which was nothing close to the max. Several (probably a small percentage) of people on the Forum survive on SS and pension. I'm sure I could do it myself, but it would change my life style considerably. YMMV

 

[motley]

I'm confident I could, but I want to do more than survive....also somehow I feel I'm underestimating my monthly costs in retirement.

 

[Teacher Terry]

When I was married we spent half of the total that we earned as a couple. We traveled and did the things we wanted to. Now divorced with my income cut in half things are much tighter.

 

[Gumby]

It's about the same. In fact, I checked my 2012 spreadsheet (which was 7 years before we retired) and we're up only about 15% from there. Of course we were paying on a mortgage then and we spend on different things now, and prices have gone up. But, in general, I conclude that we have had a very consistent lifestyle for a very long time.

 

[NeilDH]

We are spending about the same as we did pre-retirement, though we have spent more this year due to some major home repairs.

We retired April 2023, so this will be our first "full" year of retirement. I won't know until the end of the year what our total spending came too, but my mid-year estimates put us just slightly above our planned expenses, which was about what we were spending while working. We spend far less on gas and a few work related expenses, but make up for that with more recreation and eating out now. Everything else is roughly the same.

Our situation is similar to this. We’re on track to spend nearly equal to our previous take-home pay. That’s much less than our w*rking gross income, because we were contributing to 401K and HSA, and health insurance and other premiums were coming out of our check, as well as taxes of course, etc. IRA contributions were coming out of our take-home pay; now that’s basically replaced by ACA, dental and eye insurance premiums — actually those are less than the IRA contributions. We’ll have to worry about income taxes, though those I don’t expect to be so high (if I can help it and plan it all correctly). Other little differences like that, but in the end our current out-of-pocket is running the same as before. We’re cautious so far, spending on travel what we did before, but I’d like to worry less about that. We’ll see how it goes.

 

[RobLJ]

As posted somewhere else, we have increased spending on travel, grandkids' college funds, etc.
I have recalculated spending twice and it is up 50% from 2015, which was admittedly conservative. We don't spend it all, though. I told dear wife, she could up it another 20%, which probably won't happen, since she is frugal. We're sending my 92 year old mother money (for the last 20 year), so at some point, theoretical spending will increase even more. And my mother took care of my progressive myclonic twin for 30 years, so helping her is not a burden. She is a saint; she gave up her teaching career for that.

 

[Hyper]

Blessed by the great Lord! 125% spending now over before RE. I have an amount (in mind) of monthly $ x amount of years we might live? We rarely hit that amount and were getting close to "saving", unintentionally?
We didn't factor ss or DW pension in. So it will be like hitting the lottery when that starts.
We live in what can be a harsh environment so feeling the beginning effects of aging, decided to spend all we can on things that we make our lives, hopefully, much easier as we age.
Food is atrocious in our area so have been spending on different appliances for specific types of meals.
We won't travel for " belief" reasons. So that's a huge savings.
Again extremely blessed beyond belief!

 

[jdnd9091]

Not really, just on different things. Before we retired, we probably spent about $300K a year, yeah, gulp. We made about $500K to 750K a year for the last 15 years or so before we retired. We ate out 3 meals a day as we were both in very high stress jobs/work and working 7 days a week. We travelled alot and were on work vacations while we were always connected and working. We owned 2 homes in different states before we retired. We sold one home and moved a year after we retired.

After we retired, we have settled into lunch out everyday but the other 2 meals at home, except for some dinners out and entertaining friends at our home. We travel more now, 3 months a year, getting away from cold winters and hot summers. Expenses saved from not eating out all 3 meals a year have been replaced by golf. We belong to a country club and golf 4 to 5 days a week, even when we travel and play outside of our home course.

We are 61 (almost 62)/76.

You didn't mention if you're still spending 300k a year? We have spent similar to that, but plan on knocking that number down 40% or so, so I'm curious if you feel the need to live on that still?

 

[unclemick]

Ballpark 12k to over 120k , 30 years plus - Jan 1993 to Jan 2024. Two spikes - remodeling and new house post Katrina, second wife (first passed), moved 1000 miles inland, overly frugal in the early years, now - older than dirt. Grin.

Heh, heh, heh - live long and expect the interesting! Stay flexible.

 

[RetiredHappy]

You didn't mention if you're still spending 300k a year? We have spent similar to that, but plan on knocking that number down 40% or so, so I'm curious if you feel the need to live on that still?

It still ranges from about $250k to $300k per year, not counting lumpy expenses like a new home and then followed by a major renovation. We started our retirement by setting aside about $1m before all income streams kicked in. Blew through that in about 4 to 5 years. We did not count that as withdrawal percentage against investments. Then we got to about 6 to 7 percent withdrawal. In another 3 years, we should be able to get to about 2.5 percent withdrawal, 12 years after retirement. Three years' time I go from expensive health care to Medicare, so it is going to feel like getting a raise.

 

[Jeffman52]

DW and I retired at the end of May this year. So our spending has stayed the same as when we were working. We have a specific budget that we want to stay in. We planned and paid for a couple of vacations that would happen after we retired so that wont impact our current budget.

All that being said, I keep everything in spreadsheets so I can see what our spend is, how much we are getting from our investments. Since we have an automatic amount going from investments to our bank account, I also track how much is in our bank account at the beginning of each month. That also helps me do a "quick check" of how we are doing on our budget without having to download our bank statements each month and line item each transaction. Which is a bit of a pain.

We are also looking at downsizing and moving soon, so we are putting off big spends until we see what that looks like. But nothing crazy, we are still going skiing this winter a couple of times. We are pretty healthy now, but want to take as many of those as we can because there will come a time.....

 

[DayDreaming]

I retired at age 48. Not counting occasional major purchases (car, furnace, roof, etc), my expenses remained about the same as pre-retirement. In my 60's now and still not much has changed. I lead a boring life.

 

[Ballhawker]

As posted somewhere else, we have increased spending on travel, grandkids' college funds, etc.
I have recalculated spending twice and it is up 50% from 2015, which was admittedly conservative. We don't spend it all, though. I told dear wife, she could up it another 20%, which probably won't happen, since she is frugal. We're sending my 92 year old mother money (for the last 20 year), so at some point, theoretical spending will increase even more. And my mother took care of my progressive myclonic twin for 30 years, so helping her is not a burden. She is a saint; she gave up her teaching career for that.

Curious if you factored inflation in the spending changes from 2015? Inflation has raised prices about 33% since 2015.

 

[Rianne]

Our spending increased b/c of travel. We have no debt. Part of it is inflation. This year with approx. 35k in travel we'll be around the $90 k spend including taxes. I suspect future years when health declines, we'll travel less. Then we'll have to think about healthcare, and whatever living considerations like CCRC. Health will be a big factor in determining spending in the future. Right now, it's fun, food, and travel.

 

[jollystomper]

Edit: I should have clarified- what I'm interested in is percentage change from pre-retirement spending. My question (more accurately) to you is: on a percentage basis, how did your spending change following retirement and by what age? For example, I retired at 55 and spent 90% of pre-retirement, at 60 that changed to 80%, etc....

Thanks!!!

I retired at 60. Comparing the six years pre-retirement to my six years of retirement, I am spending about 70% of the pre-retirement amount. If taxes are removed, it is 80% of pre-retirement spending.

 

[aja8888]

My spending took a big change when DW passed away. I sold the big house and downsized. Losing her SS income wasn't much of a big deal, but the house expenses were not appropriate for a single guy. Also, her medical expenses vanished. One item that has increased is my gifting to my daughter and that's been increasing each year. She could use the money now, so why not give it to her?

 

[RE2Boys]

Our spending has constantly changed during retirement, mostly due to retiring with two pre-school sons. Spending on kids activities, to teen agers and cars, to college expenses, etc.

We always travelled some with the boys but recently our travel arrangements have moved upscale and we fly more often rather than taking road trips with our pop-up camper. But I sure miss those trips as a family, but not the driving part so much as I can no longer drive at night.

 

[brett]

Not certain how any other person's spending patterns can be relevant. We downsized and travel extensively. Friends of ours are happy to stay in their home and follow their hobbies.

All based on personal preference, health, hobbies, travel, lifestyle, retirement incomes, investment income,..etc.