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I'm getting ready to retire. I will have a defined benefit, and will get social security, plus have some invested...
I will have plenty to live on, but am wondering what you folks think is a reasonable retirement monthly budget based on some assumptions.
1. My health care will cost $400 month. Good health care.
2. My dental, eyeglasses, etc. i will have to pay out of pocket.
3. Rent I assume will remain around 1200 month. I don't own and have no plans to.
4. Fixed costs are the usual and I'm assuming internet, maintenance of 10 year old car...probably 10,000 miles a year...
5. Food of course with s ome eating out, but generally nothing too extravagant...
6. I do like to take several domestic trips a year...let's assume 3 trips at 1,000 apiece and one abroad at 3,000 .
I don't have all expenses listed, but I think you get the idea...
What, to you, is maybe a minimum, moderate, high budget.....??
Thanks for your help. I have a number in mind, but am curious as to what others think....
What about utilities, entertainment, life insurance maybe, renters insurance maybe, pets?, co pays, gas, medical over the counter stuff, shopping, credit cards, and other stuff that just happens?
With a $1200 a month rent budget and $400 in health care, I would think you would need $4000 a month. Or maybe more. Alot of maybes in this. I could do it on $50000 and have some left. JMHO
ever notice your expenses actually clock in sooooo much more than the ones you think of?
we set our retirement budget at 2x our non-descreationary spending. we like going places and doing things and time cost money. in retirement the one thing we will have plenty of is time.
I'm getting ready to retire. I will have a defined benefit, and will get social security, plus have some invested...
I will have plenty to live on, but am wondering what you folks think is a reasonable retirement monthly budget based on some assumptions.
1. My health care will cost $400 month. Good health care.
2. My dental, eyeglasses, etc. i will have to pay out of pocket.
3. Rent I assume will remain around 1200 month. I don't own and have no plans to.
4. Fixed costs are the usual and I'm assuming internet, maintenance of 10 year old car...probably 10,000 miles a year...
5. Food of course with s ome eating out, but generally nothing too extravagant...
6. I do like to take several domestic trips a year...let's assume 3 trips at 1,000 apiece and one abroad at 3,000 .
I don't have all expenses listed, but I think you get the idea...
What, to you, is maybe a minimum, moderate, high budget.....??
Thanks for your help. I have a number in mind, but am curious as to what others think....
This can not be answered with the info. I would say you will at least spend what you spend now. Don't forget inflation
Search Talk of The Villages - The Villages, Florida for budget info. You should get some insight from the posts.
Look at your credit card and bank statements to see what you are now spending.
Be sure to budget a new car and any other big expense you will have. Also an emergency fund.
You might need more help as you age.
I'd look for budget to be near same as now .You will save some here and spend more there. Otherwise not really possible over internet. If you need to make cuts then record ALL spending over three months then look at what you can cut. from the list.
I'd guess at least $4K a month before taxes based on the expenses you listed. Maybe $5K or more, especially if you include big expenses like replacing a car and dental expenses (dental expenses can be significant for older folks). And if you are single and most of your retirement income is taxable, federal income taxes in retirement will not decrease significantly unless you are low income. The average pre-tax income for a single person in their 60's is less than $40K a year but your rent and travel expenses alone are greater than "average." I'd recommend tracking your expenses for a year prior to retirement or do a good scrub of last years's spending to get a handle on how much you spend, what expenses might decrease, and what expenses might increase in retirement. Based on your listed expenses, my vote is:
Minimum $4K a month
Moderate $5K a month
High $6K a month or more
I'd guess at least $4K a month before taxes based on the expenses you listed. Maybe $5K or more, especially if you include big expenses like replacing a car and dental expenses (dental expenses can be significant for older folks). And if you are single and most of your retirement income is taxable, federal income taxes in retirement will not decrease significantly unless you are low income. The average pre-tax income for a single person in their 60's is less than $40K a year but your rent and travel expenses alone are greater than "average." I'd recommend tracking your expenses for a year prior to retirement or do a good scrub of last years's spending to get a handle on how much you spend, what expenses might decrease, and what expenses might increase in retirement. Based on your listed expenses, my vote is:
Minimum $4K a month
Moderate $5K a month
High $6K a month or more
Exactly what I'm thinking. And I'll be able to afford 6k a month. Not necessarily a whole lot more than that though. And I do have some cash stashed for things like a car replacement, etc...
The thing is...this would happen at 62..and I'm including early Social Security...Waiting for an increased social security benefit and $300 a month increased take home per month from my defined benefit doesn't seem worth it given the tradeoff of not working..or choosing to work part-time, etc...not sure I want to sacrifice the next 4-5 years working and then be 67 but only have increased my take home to maybe 7.5k a month instead of 6k...
I mean I'm thinking to go ahead and enjoy the time between 62-67 even though it will mean less for a lifetime, but not "significantly" less...by the time I"m 67, many things can happen healthwise, etc...and I don't want to regret having the five years between 62 and 67 of financial freedom and doing what I want...
I'm getting ready to retire. I will have a defined benefit, and will get social security, plus have some invested...
I will have plenty to live on, but am wondering what you folks think is a reasonable retirement monthly budget based on some assumptions.
1. My health care will cost $400 month. Good health care.
2. My dental, eyeglasses, etc. i will have to pay out of pocket.
3. Rent I assume will remain around 1200 month. I don't own and have no plans to.
4. Fixed costs are the usual and I'm assuming internet, maintenance of 10 year old car...probably 10,000 miles a year...
5. Food of course with s ome eating out, but generally nothing too extravagant...
6. I do like to take several domestic trips a year...let's assume 3 trips at 1,000 apiece and one abroad at 3,000 .
I don't have all expenses listed, but I think you get the idea...
What, to you, is maybe a minimum, moderate, high budget.....??
Thanks for your help. I have a number in mind, but am curious as to what others think....
I think min of $4K.
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