Average monthly expenses in retirement (supplement, social security, out of control, payments)

[granny-nanny48]

We live in Ohio presently, and our expenses for the month, include rent, food, utilities, insurance, we are debt free, and our monthly amount is $950/month, we eat healthy food, cooked at home, not at restaurants, have basic digital cable, cell phone, and a 800 sq ft apartment with heat included and we pay electric. We go out but we watch what we spend. We are moving to Nevada in June 2011, and hope to keep our expenses down. Entertainment, we belong to the American Legion, go to library, free outings, lots of walks, visit with familiy and volunteer. Our total monthly income is from pensions and SS is around $3500/month, we also work part time, strickly for fun money! I am not rich, but I am very happy with my life!

[Escort Rider]

I am 66 and a half and have been enrolled in Medicare for a year a half now. I have only Medicare coverage, as my employer retiree coverage was terminated when I reached age 65. I chose to enroll in a Medicare Advantage plan - Kaiser in Los Angeles County. This plan has a monthly premium of zero. I pay co-pays of $5 for all physician visits, $15 for lab work, $50 for out patient surgery, $50 for emergency room visits, $125 per day for the first 10 days of hospitalization, after which all hospital days are free for the remainder of the year, plus a reasonable charge for prescription drugs which seems to average about $10. There are no deductibles. I pay directly to Medicare the $154.90 per month Medicare part B premium.

I do not know why Kaiser in Los Angeles County offers such a great deal; perhaps their economies of scale (they are huge) help allow this; I know that many other Medicare Advantage Plans with similar coverage charge a substantial monthly premium, especially in other areas of the country. Also, Kaiser is not a middleman; they are the direct providers of the care. Nor do I know if this great deal will survive the reductions in Medicare funding which will kick in in 2012. I do know that I consider myself extremely fortunate, even moreso because the quality of care at Kaiser is superb, as reflected in Medicare's own rating system of patient satisfaction.

Nor is my good fortune all that rare, although it is certainly not typical on a national scale. Kaiser has tens of thousands if not hundreds of thousands of members in Los Angeles and Orange Counties (the two counties in which my specific Medicare Advantage Plan is offered).

[nicet4]

Originally Posted by Escort Rider

I am 66 and a half and have been enrolled in Medicare for a year a half now. I have only Medicare coverage, as my employer retiree coverage was terminated when I reached age 65. I chose to enroll in a Medicare Advantage plan - Kaiser in Los Angeles County. This plan has a monthly premium of zero. I pay co-pays of $5 for all physician visits, $15 for lab work, $50 for out patient surgery, $50 for emergency room visits, $125 per day for the first 10 days of hospitalization, after which all hospital days are free for the remainder of the year, plus a reasonable charge for prescription drugs which seems to average about $10. There are no deductibles. I pay directly to Medicare the $154.90 per month Medicare part B premium.

I do not know why Kaiser in Los Angeles County offers such a great deal; perhaps their economies of scale (they are huge) help allow this; I know that many other Medicare Advantage Plans with similar coverage charge a substantial monthly premium, especially in other areas of the country. Also, Kaiser is not a middleman; they are the direct providers of the care. Nor do I know if this great deal will survive the reductions in Medicare funding which will kick in in 2012. I do know that I consider myself extremely fortunate, even moreso because the quality of care at Kaiser is superb, as reflected in Medicare's own rating system of patient satisfaction.

Nor is my good fortune all that rare, although it is certainly not typical on a national scale. Kaiser has tens of thousands if not hundreds of thousands of members in Los Angeles and Orange Counties (the two counties in which my specific Medicare Advantage Plan is offered).

Retirement scares me because I am so afraid of living in poverty. Did it once, I was young (early 20's) and single with nobody but me to look out for, when I did something stupid that ended up leaving me living in a 1969 out of gas Volkswagon Beetle with a bad case of pneumonia, no money (not even a nickle) and I vowed never to do that again. It was horrible at 23 and I can not imagine having to deal with that at 75.

At 66 we estimate our total retirement income will be $3,300/month for two but if I work just 4 more years that would go up to $3,900/month so I am going to work to at least 70 and beyond if I can. At least I have the type of job that isn't physically demanding so I should be able to.

Did I tell you poverty scares me more than just about anything?

In anticipation we already "moved down" several years ago.

Monthly expenses.
Income Taxes $294
Property Taxes $100
Utilities $250 (Averaged - I know it is high but I don't want to be cold in the dark)
CableVision $83.33 (Basic plus extra for Discovery, History, Animal Planet & Lifetime)
Internet $75
Insurance $100 (Does not include Medical)
Cell Phones $75
Food $433 (We don't overindulge but we do eat healthy which takes more)
Medical $500 ($6,000/year set aside for everything medical related including a Medicare Advantage Plan. I want worse case so tell me, to low, to high or about right?)
Entertainment & Dining out $217 ($50/week for two)
Clothing $125 (I am happy in shorts, flip flops and a t-shirt. My wife is not).
Gasoline $83
Home Repairs $100 (Drain stopped up?)
Yard Service $100 (If and when I can no longer do it)
My Money $216 (pocket money)
Her Money $216 (pocket money)
Emergencies $250
Total $3,219/month

If I retire at 66 ($3,300/month) we would have $81/month left over in the budget. I think we would be safe because I think I have plenty of "extra" we could cut out if we had to and still live comfortably enough. Yard service, my money (pocket money), her money (more pocket money) and "Emergencies" that may or may not happen totals $783/month.

Matter of fact without the $783 our budget would drop to less than $2,500 for two which I think is pretty good. I am kind of proud of myself.

I work to 70 I could save half my income between 66 and 70 and then with the $3,900/month and with that much we certainly wouldn't have a problem "staying within budget".

I probably could retire at 66 but I need to keep going just for my own peace of mind... that and if something does happen to me my wife could use the extra money.

So, on my budget, did I miss anything?

PS Georgia exempts retirement income to $35,000 per person or $70,000 per couple from state income taxes.

[Escort Rider]

To Nicet4: While I have no crystal ball, I think $500 per month for medical should be plenty. You have done a lot of careful thinking - congratulations. As far as retiring at 66 versus 70, keep in mind that it doesn't have to be one or the other. Allow me to explain my thinking: suppose you reach age 66 and keep on working. When you reach 67 you will probably take stock and re-evaluate the whole situation, being the careful and aware person you are. Likewise at 68, etc. So you might decide at 67 (for example) that things are looking good enough to go ahead and take the plunge. There will be both financial and non-financial considerations; for example, how tired of working will you be at 67? No way to know that now, is the point. I can't help but think you two will be just fine.

[Robyn55]

I don't think $500/month for medical works for 2 people - especially if - as expected - Medicare Advantage disappears. Medicare Part B will run at least $110/month. Decent Medigap at least $100/month. Part D at least $35/month. Times 2 = $490. Doesn't cover drugs in the "donut hole" - or anything not covered by Medicare - like dental. Long term care is - of course - a totally different issue not usually faced until later in life. I think we'll all be spending a lot more for medical care in the next 10 years than we thought we'd be spending 10 years ago. Robyn

[Robyn55]

Originally Posted by nicet4

Retirement scares me because I am so afraid of living in poverty. Did it once, I was young (early 20's) and single with nobody but me to look out for, when I did something stupid that ended up leaving me living in a 1969 out of gas Volkswagon Beetle with a bad case of pneumonia, no money (not even a nickle) and I vowed never to do that again. It was horrible at 23 and I can not imagine having to deal with that at 75.

At 66 we estimate our total retirement income will be $3,300/month for two but if I work just 4 more years that would go up to $3,900/month so I am going to work to at least 70 and beyond if I can. At least I have the type of job that isn't physically demanding so I should be able to.

Did I tell you poverty scares me more than just about anything?

In anticipation we already "moved down" several years ago.

Monthly expenses.
Income Taxes $294
Property Taxes $100
Utilities $250 (Averaged - I know it is high but I don't want to be cold in the dark)
CableVision $83.33 (Basic plus extra for Discovery, History, Animal Planet & Lifetime)
Internet $75
Insurance $100 (Does not include Medical)
Cell Phones $75
Food $433 (We don't overindulge but we do eat healthy which takes more)
Medical $500 ($6,000/year set aside for everything medical related including a Medicare Advantage Plan. I want worse case so tell me, to low, to high or about right?)
Entertainment & Dining out $217 ($50/week for two)
Clothing $125 (I am happy in shorts, flip flops and a t-shirt. My wife is not).
Gasoline $83
Home Repairs $100 (Drain stopped up?)
Yard Service $100 (If and when I can no longer do it)
My Money $216 (pocket money)
Her Money $216 (pocket money)
Emergencies $250
Total $3,219/month

If I retire at 66 ($3,300/month) we would have $81/month left over in the budget. I think we would be safe because I think I have plenty of "extra" we could cut out if we had to and still live comfortably enough. Yard service, my money (pocket money), her money (more pocket money) and "Emergencies" that may or may not happen totals $783/month.

Matter of fact without the $783 our budget would drop to less than $2,500 for two which I think is pretty good. I am kind of proud of myself.

I work to 70 I could save half my income between 66 and 70 and then with the $3,900/month and with that much we certainly wouldn't have a problem "staying within budget".

I probably could retire at 66 but I need to keep going just for my own peace of mind... that and if something does happen to me my wife could use the extra money.

So, on my budget, did I miss anything?

PS Georgia exempts retirement income to $35,000 per person or $70,000 per couple from state income taxes.

I think you've left out certain things - like buying new stuff (a TV - dishwasher - new carpet - new car - etc.) - and perhaps been unrealistic about others (will you ever need a new roof on your house?). You haven't put down 10 cents for travel (even if you don't intend to travel - perhaps you might be expected at a family wedding or funeral?). Robyn

[nicet4]

Originally Posted by Robyn55

I don't think $500/month for medical works for 2 people - especially if - as expected - Medicare Advantage disappears. Medicare Part B will run at least $110/month. Decent Medigap at least $100/month. Part D at least $35/month. Times 2 = $490. Doesn't cover drugs in the "donut hole" - or anything not covered by Medicare - like dental. Long term care is - of course - a totally different issue not usually faced until later in life. I think we'll all be spending a lot more for medical care in the next 10 years than we thought we'd be spending 10 years ago. Robyn

Exactly why I am afraid to retire.

Who knows what it will be like 5 or 10 years from now?

Then I never thought about dental care and the last crown I got was $1,200. I could see dental for two healthy people running $80/moth easy.

Bifocals were $400 with the exam.

With two people, dental and eyeglasses I guess I can see the whole ball of wax double to $1,000/mo.

Hey, maybe we won't use that much but I'd rather have it available if needed. If not we'll save the money for the next year and go on a cruise.

Originally Posted by Robyn55

I think you've left out certain things - like buying new stuff (a TV - dishwasher - new carpet - new car - etc.) - and perhaps been unrealistic about others (will you ever need a new roof on your house?). You haven't put down 10 cents for travel (even if you don't intend to travel - perhaps you might be expected at a family wedding or funeral?). Robyn

While I am working I am fixing the house. First thing we did was put on a new roof using a 30 year shingle. Even in our climate the roof should last me until I am at least 85.

This year we're having the bathroom completely redone to include all hot, cold and waste water to the street. All new plumbing and since I am sort of in the business it will be done right.

Older house, all hardwood floors 3" thick and not a lick of carpet anywhere besides throw rugs. It's an old southern house.

Had the house treated for termites (we didn't have any but being in the south you want a treatment anyway) and as long as I have an annual inspection I never have to worry about that.

We do have an IRA account, I didn't budget anything from that though I understand I have to start taking distributions at 70 1/2 years of age. It isn't millions but it's enough to afford a new television every month for as long as we both live. That's sort of our real emergency fund.

Last spring we purchased our next to last new car and we'll probably buy our last one the day after I actually retire.

But the more I think about it working to at least 67 or 68 is in my future.

[LauraC]

Originally Posted by nicet4

Retirement scares me because I am so afraid of living in poverty. Did it once, I was young (early 20's) and single with nobody but me to look out for, when I did something stupid that ended up leaving me living in a 1969 out of gas Volkswagon Beetle with a bad case of pneumonia, no money (not even a nickle) and I vowed never to do that again. It was horrible at 23 and I can not imagine having to deal with that at 75.

At 66 we estimate our total retirement income will be $3,300/month for two but if I work just 4 more years that would go up to $3,900/month so I am going to work to at least 70 and beyond if I can. At least I have the type of job that isn't physically demanding so I should be able to.

Did I tell you poverty scares me more than just about anything?

In anticipation we already "moved down" several years ago.

Monthly expenses.
Income Taxes $294
Property Taxes $100
Utilities $250 (Averaged - I know it is high but I don't want to be cold in the dark)
CableVision $83.33 (Basic plus extra for Discovery, History, Animal Planet & Lifetime)
Internet $75
Insurance $100 (Does not include Medical)
Cell Phones $75
Food $433 (We don't overindulge but we do eat healthy which takes more)
Medical $500 ($6,000/year set aside for everything medical related including a Medicare Advantage Plan. I want worse case so tell me, to low, to high or about right?)
Entertainment & Dining out $217 ($50/week for two)
Clothing $125 (I am happy in shorts, flip flops and a t-shirt. My wife is not).
Gasoline $83
Home Repairs $100 (Drain stopped up?)
Yard Service $100 (If and when I can no longer do it)
My Money $216 (pocket money)
Her Money $216 (pocket money)
Emergencies $250
Total $3,219/month

If I retire at 66 ($3,300/month) we would have $81/month left over in the budget. I think we would be safe because I think I have plenty of "extra" we could cut out if we had to and still live comfortably enough. Yard service, my money (pocket money), her money (more pocket money) and "Emergencies" that may or may not happen totals $783/month.

Matter of fact without the $783 our budget would drop to less than $2,500 for two which I think is pretty good. I am kind of proud of myself.

I work to 70 I could save half my income between 66 and 70 and then with the $3,900/month and with that much we certainly wouldn't have a problem "staying within budget".

I probably could retire at 66 but I need to keep going just for my own peace of mind... that and if something does happen to me my wife could use the extra money.

So, on my budget, did I miss anything?

PS Georgia exempts retirement income to $35,000 per person or $70,000 per couple from state income taxes.

Unless you work from home now, I bet your gasoline and food expenses go down in retirement but your utilities may go up simply because you will be home more, using them.

Don't know what kind of job you have, but if you and the spouse have to dress up for work, dry cleaning costs could be drastically decreased in retirement because you will live in machine washable play clothes. Annual registration and inspection, car maintenance (oil changes, tire rotation, etc.), subscriptions (newspaper, magazines), licenses, computer security subscription (McAfee, Norton, etc.), postage/packages, dues for anything you belong to, and you haven't even mentioned what types of activities you like to do all should be considered. Unless your retirement income is adjusted, consider the cost of items you pay for now will only go up over time.

[mathjak107]

depending where you retire gasoline and food can go higher. i know in PA.where our retiement home is you have to drive to everything even to get the mail. everything is 15-20 min away.

as far as food im not looking for it to go down ,where as now i bring food to work if we are home and out we are always eating lunch out or picking up different things for dinners.

im not looking at spending any less in retirement.. with us time cost money and in retirement thats one thing we will have plenty of.

robyn your right abought medical. we are figuring 1,000 a month for insurance and there is loads of other stuff thats not covered.

i spent 25k for dental a few years ago... just got new lenses the other day 400 bucks including a co-pay at the opthamologist.


homes can cost an amazing amount of money if you keep up with the maintaince.

just this week restaining the deck and porch and power washing 1200 bucks...we are repainting the sheet rock in the garage 200 bucks, we fixed a septic issue this year 700 bucks, the routine bug guy 200 bucks, tree knocked down our electric service from the ice 500.00 bucks remove 2 dead trees 450.00 bucks, renewed my license and registration 250 bucks.the list goes on and on and we dont even live there full time.

[henry1]

if i move to my place in utah after retirement .. here is my basic once a year payments and tri monthly payments and monthly payments..i will be getting around $.1750.oo a month when i retire out ..i have met with a financial advisor and him and set up a plan for me to be able to set aside a amount of money about 8 years ago when i saw i was getting closer to retirement age and did not want to have to money taken out of the monthly bills to pay for items ..

so we sit down and talked about how we could build a little nestegg set up to make the big once a year payments out of the money that is collecting interest over a year time frame and you are allowed to draw off the basic interest of the money and never touching the main amount that in the account..

so we sit down and bought in all my bills for a year time frame without the rent of the house in the city and other city liveing expense that where not going to be there when i retired from my job .. then we talked about what and how much did i really need to live comfortable without haveing to try to save money from the monthly bills to pay for items ..

he showed me how to do just that with a small investment of $.25,000.oo dollars in the pot to get the fund started and i have left it alone now for 8 years keeping the amount rolling over and just sitting there in the account garthing interest on the orignal amount that was put into it ..

so here how my bills are broken down over a year..

here is my once a year payment items

once a year payment of taxs on the land -x-$.250.oo a year

car ins per year for i found that if make one lump sum payment at one time my rate goes down for a full coverage amount ..-x-$.650.oo

personal ins for dental and medical -x-$.3400.oo

costco and sam club membership-x-$.100.oo

land ins for the house and land from flooding to fire to wind to everthing inbetween as it need-x-$.700.oo

total yearly bills-x-$.5100.


tri monthly payments-

every three months of the personal meds at walmart for i can get a three month supply of the meds i need there -x-$.70.oo

meat run to costco and sam club for bulk meat buys for i break them down into smaller packageing and make my meals out of the smaller package from hambuger meat to steaks and pork chops and diff cuts of beef to boneless chicken breast for my meals plus toliet paper and papertowels and other large bulk items for i find that it easlyer to buy some items in a large bulk package than try and go to the local store and buy them -x-$.450.oo

total tri monthly bills-x-$.520.oo

monthly bills

gas for the car-x-$.70

cell phone and internet service-x-$.125.oo

food cost-x-$.70.oo

sat tv -x-$.100.oo

ins for the house and land from fire to wind to other damages if something happens ..-x-$.75.oo

misc items-x-$.300.oo

prepaid credit card for internet shoping -x-$.150.oo

total month bills-x-$.870.oo a month

that leaves me about $.1000.oo dollars a month to go into the kitty for vacations and other areas to use if the car needs to be repaired or i need to buy extras items for birthdays or Xmas shopping ..