Exactly what is a comfortable middle class retirement? (pensions, physically, move)

[TuborgP]

Originally Posted by texdav

I really don't think that you can just say medicare $300 as it depends too much on what happens. I know many that went from a 0 medeicine cost to 300 a month on that alone and that is low. I would say that since you say you live simply now then keep a runinng record for three months on what you spend now.Even looking at your present income to outflow. First look at your slary how and how much you save and that will give you a idea of what your cost of living is now.I's add a minimum of 3% per year and that isn't set in stone for inflation overall.

very good advice

[forest beekeeper]

Medical care is very hard to budget.

My pension is about $500 less than your projected sum/month.

Otherwise it looks about right.

Each area is different.

We have 150 acres of forest, our taxes work out to around $4/month. And our food is less, but then we grow a lot too.

We have livestock, and their feed bill comes to about $200/month; but then we sell and barter the eggs, meat and wool. So really it comes out even. [what we spend on livestock equals what we bring in, plus our freezer is stocked and frig is filled with eggs.]

On the other hand we have a high heating bill, 4 cords of wood last winter, say $50/month.

[wabanaki]

$ 1,950 would be comfortable for us, but we only get $ 1,450, the number for Medicare, Utilities have to be lower and forget about the Emergency fund.

Originally Posted by nicet4

What does it take to live a comfortable retirement life?

This will vary greatly around the country with utility costs and property taxes being so much higher in New York and California as opposed to southern Alabama for example.

I have started to lay out our budget and I am thinking we can live very comfortably on $1,950 a month and that's $300 "cushion" for emergencies and maybe some minor travel to see kids etc.

Medicare $300.00 Utilities $450.00 Property Tax $100.00 Auto $150.00 Church $100.00 Recreation $200.00 Food Budget $300.00 Emergency $300.00 Homeowners Insurance $50.00 Total $1,950.00

I know I am high on utilities but that includes gas, electric, water, sewer, garbage pick up, cable television, telephone and high speed internet. Our highest utilities are in summer (air conditioning) and they might all total $400 so I do have some cushion there. Fact be I estimated everything on the high side seeing as how we consider recreation going to McDonalds and getting a $1 ice cream sundae a high point of the week.

Recreation is $25 a month for gym dues and $75 for country club membership. Yes sir, we do live in a less expensive area of the country.

Food is high and while we do not overeat we do eat healthy with lots of fresh vegetables, fresh fish and little red meat.

So what am I missing?

[duke1946]

no matter which party is in control in the near future medical costs are going to be dealt with...everyone knows that our health care delivery and costs are unsustainable and there will be new ways of costing and delivering health care relatively soon...that is going to help the retiree with health care cost in the future...so no one needs to go bankrupt because of medical bills...however, the price will be that medical care will not be as good as the best available now for low income retirees, but it will be affordable...

[Den Mathias]

Originally Posted by MadManofBethesda

For example, a 3% COLA on $24,000 is only $60/month, but your expenses (Medicare, property taxes, utilities, food, gasoline, etc.) would likely go up more than that. And next year there won't even be a COLA, but I'm sure your expenses will still rise.

I am surprised that your SS is only $24,000/year. A friend and his wife recently retired, and since they both worked, they will be racking in $47,500/year. That seems more than enough to live on?

[TuborgP]

Originally Posted by Den Mathias

I am surprised that your SS is only $24,000/year. A friend and his wife recently retired, and since they both worked, they will be racking in $47,500/year. That seems more than enough to live on?

Depends on age they begin to draw benefits and their salary while working. 47K a year is a lot more than the average SS benefit at 66.

[jimmyP]

I am also thinking of retiring early and plan to live on approx 35,000 a year. I am looking forward to it and think it will be plenty. I like the peaceful life and need to catch up on a lot of reading and gardening. Have traveled the world many times and now want to plant myself. Good luck to you. It's all what makes you happy.

[nicet4]

Originally Posted by Paka

Yea, kinda reminds me of when my father died in 1975....my mom got $75K in life insurance. $75K sounded like "oh my God, you will be set for life" back then. Took less than 10 yrs to go from "set for life" to flat broke.

Exactly my fear. With inflation we had in the late 1970's how can anyone plan for what the dollars you have might be worth 30 years from now?

What cost $75,000 in 1975 would cost $296,926.66 in 2008.

If you were to buy exactly the same products in 2008 and 1975, they would cost you $75,000 and $18,023.78 respectively. What cost $75,000 in 1975 would cost $296,926.66 in 2008.

Reviewing the past 35 years and thinking $35,000 per year is enough to retire on today.

If you were to buy exactly the same products in 2008 and 1975, they would cost you $35,000 and $8,411.10 respectively.

[nicet4]

Originally Posted by TuborgP

Depends on age they begin to draw benefits and their salary while working. 47K a year is a lot more than the average SS benefit at 66.

If they both worked and earned equal amounts $23,500 per year each is reasonable to expect. That would be a very nice income for two people as most men raise families on less.

Here's their problem though. Should one spouse die their income would be cut in half. One could make it on $1,958 a month but would definitely have to be planned for.

[Tesaje]

Originally Posted by nicet4

If they both worked and earned equal amounts $23,500 per year each is reasonable to expect. That would be a very nice income for two people as most men raise families on less.

Not really true. The average income stands at about $50k/year. So it is a minority of people who raise families on so little. Most raise families on double that or more.

It also indicates that a couple who will each get $23.5k on SS would have been earning quite a bit more so the relative dip is large for them.