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Old 07-29-2017, 06:48 AM
 
Location: Tampa, FL
27,798 posts, read 26,244,921 times
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Quote:
Originally Posted by TuborgP View Post
Yes in our case. Much more discretionary spending
My little way of supporting the American economy. Everybody has to do their part.
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Old 07-29-2017, 07:33 AM
 
Location: Forests of Maine
30,704 posts, read 49,495,894 times
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"The report didn't measure actual spending, but how much income an individual had left after taxes. It included salary and wages, Social Security benefits, and distributions from retirement accounts and pensions."

My pension is a lot less than how much I was earning before I retired.

I did not pay income taxes before, and I do not pay into income taxes now. So my ratio of pre-tax income to after-tax income has remained the same, comparing working income to retired income.
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Old 07-29-2017, 07:57 AM
 
Location: Kalamalka Lake, B.C.
3,044 posts, read 4,021,588 times
Reputation: 3898
my spending has nose-dived. There's no commuting, eating out for lunch, less wear and tear on vehicles, 10% at least off everything, and what clothing I do have last forever now. The women I date all have mo' money than me and a nicer car! And, of course, I'm in Canada so the medical thang doesn't need input.

It's all good. But if you had really bad spending habits while working and continue to be a compulsive shopper in retirement it's problematic. I got a senior 38,000 in back due benefits and every door she walked by she bought some trinket/useless counter space thing: the extra money was just gone in two years.
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Old 07-29-2017, 09:12 AM
 
Location: Loudon, TN
5,807 posts, read 4,854,199 times
Reputation: 19522
We spend more on some things, less on others. We've never been big spenders. We took about a 40% hit in gross income overall when we retired. On the other hand, almost half of that 40% had been going into retirement savings, which ceased at retirement. We no longer have to pay FICO, and other deductions from our paycheck, so our net is probably only about 15% lower than our net was while working, not counting the money that was going into retirement savings. We moved to a lower COL state and we save a lot vs living in our old state, so in the end we are actually ahead financially. I never thought I would say that we are actually able to save money during retirement for big ticket items like remodels, etc. We are not taking SS yet, so when we do we will definitely increase our spending on travel, etc. We will be losing one annuity soon, but we have a plan to replace that income, so it's all good.

Articles like this one that try to give generalized advice are next to useless in my opinion. Every case is so different.
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Old 07-29-2017, 09:15 AM
 
6,653 posts, read 3,764,565 times
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Quote:
Originally Posted by borninsac View Post
They probably spend more because they have the funds and planned on doing certain things. I think it's a matter of choice and ability to pay.
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Old 07-29-2017, 09:41 AM
NCN
 
Location: NC/SC Border Patrol
21,135 posts, read 21,904,692 times
Reputation: 23218
I wouldn't know how to answer this since I don't know how much I made before retirement. I did not bring much home since there were so many deductions from my check. I bought our timeshare and borrowed the money from our credit union and had that taken out of my check too. Car payment was usually taken out of my check so the interest rate would be lower. I used to joke that if I had any more deductions taken from my check I would soon be paying them.

Now we are using the timeshare to travel for about a third of what it would normally cost. We stay in condos for less than we would pay at a hotel. Once we came home from vacation and realized we had spent less money than when we are home.

One person mentioned 10 years in which I am and life is still good. Biggest expense every month on our end of the month pie chart is still taxes and second biggest is usually for charity. Sometimes food tops charity but not usually. Our tax preparer tells us we will always have to pay taxes. I guess that is better than not having to pay.

Last edited by NCN; 07-29-2017 at 09:51 AM..
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Old 07-29-2017, 11:32 AM
 
10,819 posts, read 8,077,208 times
Reputation: 17034
Quote:
Originally Posted by bpollen View Post
They probably spend more because they have the funds and planned on doing certain things. I think it's a matter of choice and ability to pay.
This is true for us.
During our working years we always set aside a huge chunk of our income for retirement. Now we're no longer saving for retirement and our fixed essential expenses (housing & utilities, auto & gas, taxes & insurance) are the same or less so in effect we have more discretionary income.
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Old 07-29-2017, 03:43 PM
 
5,347 posts, read 7,231,629 times
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I think a lot of people spend more money on travel and hobbies when they retire but perhaps less on material goods. Eventually most of us end up spending more on health care or care giving.
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Old 07-29-2017, 03:57 PM
 
1,949 posts, read 1,340,408 times
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I can see the first few years spending might be up because having everday off is a new thing. So many things to do, so many places to go eat out and travel. After a few years I see the novelty wear off, body is older, less travelling and you have to watch what you eat, maybe less hobbies because of all the wear and tear.

Different for everyone.
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Old 07-29-2017, 04:29 PM
 
Location: Location: Happy Place
3,701 posts, read 1,878,296 times
Reputation: 11344
I anticipate to have about the same expenses when I retire in December. We will make some road trips, but we like just staying home. Maybe go to more movies on senior day (Tuesday - $4). I won't need a current wardrobe, no more competing with those employees younger than me. Shorts, tee and flip flops will suffice.
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