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That is the same way many approach retirement. Thus when it arrives they either aren’t ready or accept less than what they had aspired for. Shouldn’t all of our lives be a process of aspiration and doing the things to achieve and live those aspirations? From little league, to college, to career, to marriage and family, to early retirement and eventually our twilight years?
Don’t we envision what our lives will be like in those stages?
You say most people want their current expenses co have their current expenses covered when they retire. Ok but many others see retirement as the opportunity to create time to do what work didn’t allow them to do.
That for them means new options, new choices and they want the opportunity to explore those options with minimal if any financial restraint. Many doesn’t equal the individual nor does average.
Some do plan with discretionary income but not to the stage where one get to spend many years in a CCRC. I’m associated with lots of older people, I don’t know one who is currently living in a CCRC. Some are living with their relatives, some have AZ and their kids are taking care of them. Some had cancer and died recently, but not in CCRC, in fact one stopped her treatment and died, a couple weeks earlier or maybe earlier she was playing cards with us.
I do know people in nursing home, maybe the last year or two, my father was there the longest, 6 years, but he was in a Medicaid facility, no cost out of pocket for him.
I have a different perspective than you because I went from a we to a me when my 49 year old husband passed suddenly in 2001 when I was 44 and am currently 62.5.
Like you I live in a high tax high COL area which is in a coastal community within a 1/2 drive from where Geoff lives. When my husband died which will be 18 years ago this coming November my salary at that time was +/- $8,000 dollars shy of what my projected age 70 Social Security benefit will be. Initially, the only way I was able to stay in my home was that the mortgage had been paid off 3 years before my husband died. And what allowed me to be able to continue to remain in my home all these years along with saving for retirement and having the extra $$ to take a nice annual vacation, buy a new fridge, etc. is that my salary grew steadily over the years and currently > 2 x what it was when my husband passed.
Although Geoff has posted that his SS benefit combined with his GF's is in the $85,000 range, he also notes that he has structured his retirement financial needs on only his portion of that combined benefit being $45,000/year which living on that amount he admits that will involve significant lifestyle changes. And no doubt the reason why he did that is because he knows that the potential is always there that he will go from a we to a me either before or during retirement.
I have no doubt that you and your husband can likely survive in your high COL area on both your combined Social Security benefits, but will that be possible for the survivor to remain in that high COL when one spouse passes and 1/2 that Social Security benefit passes with them ?? For sure I know for me who will be entering retirement with no mortgage and no other major debt and having an age 70 Social Security benefit a few thousand dollars less than Geoff's, no way could I just survive on my age 70 SS benefit living where I live. And even with adding my FERS pension to that which amount will be 75% of my age 70 SS benefit, I could modestly survive on those two income streams for the short haul but highly doubt for the long haul especially when you consider the income those two streams will produce is what I earning from my working income 15 years ago and my COL has significantly risen during those years.
From personal experience going from a we to a me drastically changed how I looked at and planned for retirement. After the grief dust settled I was certainly going to as best as I could enjoy my life again and spend money on those enjoyable things that were important to me, but to waste money on things that had no lasting value to me could not be part of the plan if I wanted to have a minimally financially worry free retirement for the long haul. And with that being my goal, instead of wasting money I max contributed to my TSP/401K so I would not have to ever consider if I could alone survive on my age 70 Social Security benefit, and if I could it would involve relocating and that would not make a very happy retirement for me.
I said in theory we could, but in reality, we have more income from 6 different sources. So I should be alright. I don’t think I have to downsize for financial reason. I might downsize for space reason, unless I get a dog.
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Career, income, marital stability, success of kids, retirement, degree achievement and university from (masters). Those are the basics oh yeah housing previously and current. We are pretty happy people but that is hard to quantify and rate. Most of the others are easier to quantify and thus lend themselves to data analysis and comparing. Heck married 48 years, same wife while not average I don’t know that divorce isn’t a turn on for some.
We have great grand kids but doesn’t everyone
This is a self selecting group that frequents this sub-forum. I’ve always kind of assumed every regular has above average income, career, academics, etc. It’s average for this group. It doesn’t take long to figure that out, imo.
Depends upon percentage of discretionary expenses vs. non-discretionary expenses.
Owning two homes has been a large part of our net worth -- particularly when the tax laws were more favorable and mortgage interest expense and property taxes were deductible and income was at a higher tax bracket.
Discretionary expenses are consuming a larger part of the budget -- cell phone and electronic upgrades, entertainment, travel, personal grooming services, pets and pet services, dining out. It's the totality of these discretionary expenses that can make the difference.
When recruiting for sales people, we looked for people who liked to live large because they were the most motivated to grow their income.
I think it's more about personal equilibrium point -- some people are not content if they are not living large; some people are content with a modest life style and there is no sense of deprivation. Everyone needs to determine their personal equilibrium point for their retirement goals.
Personally, I think it’s about self identity. With some people, if you stripped their “stuff” away, they’d be buck naked. With others (myself included), they would carry on just fine.
This is a self selecting group that frequents this sub-forum. I’ve always kind of assumed every regular has above average income, career, academics, etc. It’s average for this group. It doesn’t take long to figure that out, imo.
Bada Bing! That I agree is very clear and the self reporting threads on here tend to confirm it!
It is helpful to each other and folks like us as there are still retirement decisions to be made with multiple variables to consider. There was a time where folks like us actively discussed and shared our thoughts with each other. Those not like us other said congratulations, asked questions or said nothing. Just like over the years I never participated in frugality threads or living single. However much of that has changed in this forum and now there are in the minds of some terms of service about what you should or shouldn't share as they consider it back patting. Of course for some reason now we have folks who feel compelled to read and comment on threads that are not reflective of them and to chastise folks who share what they don't want to hear about because it doesn't reflect them.
Your situation is like ours and there are many others like us who probably lived where we did and had jobs like we did. Probably the norm around the water cooler at work. I learned a lot from those who retired before me and those planning to retire around the same time.
Things do go as planned for many, not all but life is good and blessed for many. Yes not all and the best made plans can go haywire but just because ours didn't should be a beacon of hope for younger folks with similar opportunities to stay the course, be positive and don't self destruct if possible. Poop does happen but it doesn't mean we have to do so on our own.
I know many with similar opportunities who have done well and others who blew it. I have friends in both conditions.
So what are the many decisions you made to stay as poop free as possible? Isn't that worthy of conversation and sharing? No one around here knows our income but there are others of lesser means who feel comfortable to shout theirs out and make sure the forum knows. The affluent? Not so much! Wow, just wow.
WE had much luck with timing in the housing market also. How do you replicate that luck in transplanting if a person does so. How do you help your kids and others to make it more of a plan and less luck.
You have a lot to contribute in what to look for in a job to help you secure a good retirement and is it worth the trade offs. Less compensation now for higher benefits later etc etc.
Ok. So unless I’m totally misreading this, which is entirely possible, you think you have had more success and accumulated a bigger net worth than virtually everyone except a handful of the “good ole posters” on this board.
Some do plan with discretionary income but not to the stage where one get to spend many years in a CCRC. I’m associated with lots of older people, I don’t know one who is currently living in a CCRC. Some are living with their relatives, some have AZ and their kids are taking care of them. Some had cancer and died recently, but not in CCRC, in fact one stopped her treatment and died, a couple weeks earlier or maybe earlier she was playing cards with us.
I do know people in nursing home, maybe the last year or two, my father was there the longest, 6 years, but he was in a Medicaid facility, no cost out of pocket for him.
CCRC’s tend to become their own world and community etc. that is one of the draws. Get in around 80 and you have a community to support you as you age together. I had one rep explain that discretionary income once you get in is important so you can participate in the pay as you go activities.
We get invited twice a year to social activists at the one we are currently affiliated with
This is a self selecting group that frequents this sub-forum. I’ve always kind of assumed every regular has above average income, career, academics, etc. It’s average for this group. It doesn’t take long to figure that out, imo.
How would you know this and why would you come to that assumption? This is a retirement subforum within a general forum. This thread in particular generated 11,902 views and 358 replies.
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