Exactly what is a comfortable middle class retirement?

[Minervah]

Originally Posted by carmac

No one is sure of what tomorrow will bring...all you can really do is enjoy each day and count your blessings, and be thankful for what you do have.

So very, very, true. I once had a co-worker who lived for one thing; conservation of the forests and the critters who lived within. He was one of the first to become a computer whiz in the 60's and spent his life creating programs and fixing them. He neither smoked nor drank. He never dated, married or had children; he had no social activities. His passion was the flora and fauna for which he did volunteer work in his spare time.
He worked very hard with very long hours sometimes at several jobs. His goal was to be able to retire at 55-60 and live off the land he was purchasing with his many paychecks. He would turn it into a sanctuary for animals while making certain his "forest was protected." He would live out his days there in peace and tranquility.

He finally reached his dream. He could retire and begin literally building his cabin in the woods.

Then came the cancer.

He fought it with all his might and even survived a year longer than expected but was really to ill to pursue his dream. When he died he was a millionaire and then some from all his savings and investments. He left his money to his sister; a portion for her and the rest to go to another conservation project.

This was a man who had been healthy all his life. Cancer was not in his family history. But who knows what will happen down the road? He certainly never expected this.

My point is, and please forgive the long story, is that I think some of us are polishing our crystal balls to frantically. No one could have foreseen the economic chaos that has recently befallen this country and the rest of the world. Hindsight is always 20-20, regrets are blind.

Planning for the future is necessary but in the meantime we shouldn't forget the present. People should live in the now while they are alive and breathing and not become obsessed with the future. I'm not saying let the chips fall where they may. I planned and had an ostrich size nest egg but lost it all through no fault of my own. I am rebuilding that nest but having fallen out of it once, I am also allowing for the unforeseeable.

Don't try planning down to the very last penny. Have a figure in mind for the future but don't forget to enjoy the present.

[miruca]

I have avoided this thread because I might feel like I can never retire if I know what others think is necessary for a "comfortable middle class retirement" !

I know it's going to be a shock to my system no matter what!

[Waterlily]

Here is a retirement calculator Retirement Planner - MSN Money
It's adjusted for 3% inflation. I've tried them out in the past but it won't work for our circumstances. We will be getting pensions plus S.S. and there is not place to add all that in the calculator.

A middle class retirement sure sounds good.

[MotleyCrew]

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?

Other taxes? City tax, income tax, the new and upcoming Value added tax that the W.H is considering for the new health care program.

[Gandalara]

I think nicet4's budget is very doable. I've done the same thing ...

Medical 555
Utilities 307
Taxes 128
Auto 90
Charity & Gifts 65
Food & Sundries 300
Insurance 92
Home Maintenance 180
Misc (Rec & Emergency) 282
Total 1999

If you don't use it monthly, you bank it until you need it. I'm 4 years until retirement, but I currently live on 50% to 60% of my take-home. I don't think I'll have problems living within my means. If anything, I'd expect my numbers to go down, since I live in a high tax / high-cost-of-living state and don't plan on staying here

[susancruzs]

Interesting posts! I'd venture to guess and just my opinion, folks in their 60's now, grew up where one income provided for the family can get by on smaller amounts and don't think they need big amounts.

I'm going to collect social security (I'll be 62 this month) and I'm fortunate to have a pension, too. The pension will reduce 15% August 1st but the 2 combined will give me a comfortable amount (by my standards not someone elses I'm sure)! I realize inflation, economy is a factor but who can second guess what will happen?

When I'm 65, I will have to shop for supplemental insurance I received a letter the other day they will no longer insure retirees over 65 in 2010. They will allow $2,600 a year for me to purchase insurance. They won't hand me $2,600 but will pay premiums up to that amount. I retired at 55 with 60% of my pay and insurance with them until 65 (I do pay for it). I have no health issues, no medications, but of course one never knows!

I think having a plan, making a budget is a good thing and trying to live under amount received an excellent suggestion.

[akck]

Originally Posted by snkalaska

Prior to retiring I looked at a number of retirement calculators. I found them only slightly useful.

Instead I just figured what I was spending every month and figured what would change when I retired and adjusted for it. I figured less for nice work clothes, maybe less for driving to work every day...etc. I looked at what I would make in retirement and since it was more than what I was spending while working, I retired early. For me it was exactly as I figured.

The one variable that I may not have factored is buying a new car. That's a big expense that comes along every so many years and needs to be added to the monthly car budget.

I agree too! This is what I'm currently doing for planning and it's nice to hear it has worked for others. Nice to hear about the car budget too. I was planning on using extra earnings on investments, but you know how that's gone. The other thing I need to consider is if we move to a income tax state. I assumed sales tax and state income tax would balance out (only considering states with one or the other), but now we're a few years from retirement, I need to look closer at the states we are considering.

[LauraC]

Originally Posted by nicet4

.

So what am I missing?

How far do you live from what you will be doing on a regular basis? You will have to fill a 35 - 40 hour work week with something. What does your area offer retirees? That is, are there enough of you, that week day daytime activities are available in your immediate area or do you have to travel to do things during the daytime? Think gasoline. I know so many people who love living in rural areas (I would, too) but that means they have to do serious mileage for regular activities. How far are the stores, supermarket, country club, place you exercise in, movie theater, library, post office, etc., from where you live? You'll be doing those things more than you did when you were in the workforce when you only had time for them on the weekends.

Do the activities you enjoy include paying for parking? I was surprised when I went to visit two other states this month that even though the beaches were free, I had to pay to park. I've never had to do that in my state, county, local parks. So, if the game plan is to go to the beach/state parks a lot, consider parking fees. If you plan to go into some big city more often, think parking fees.

You may have to see your doctors more as you get older. Think co-pays.

If you are home more, you may use utilities more than when you were in the workforce. You know, if you live in a very hot area, you'll be home more in the daytime, when it is the hottest, and cranking up that air conditioning more. If you are eating lunch in, you'll be cooking more (and needing more food in the house) than you did when you were working.

When I retired, I found there was a whole different world in the daytime and there were a lot of free events that I never had the time to notice when I was working. I think you may be pleasantly surprised.

[deckdoc]

the retirement calculator at AARP is good.
Aftedr reading these posts decided to add mine~ good retirement is having as much as you are used to! you will not be comfortable with much less than that even if you have more than others who feel they are going fine. By carefull planning and saving I am able to retire on an income that is about 150% of what I spent when I was working and I am definitely enjoying it~ although I can see I make less than a few others that have posted on here~ they claim SS payments over 2 grand and mine is only 1000~ and wife's is less than that. But SS payments only are a supplement to your retirement~ if you are counting on SS only for your retirement you are in for a shock!

[mysticaltyger]

Originally Posted by 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...

It remains to be seen whether the reforms to health care will actually reign in costs or will merely hide them better.

Even though it's true our medical system is wasteful, I would not hold my breath on government reforms making it cheaper. Obama is proposing spening over $1 Trillion (that's Trillio with a "T", no exaggeration) on so-called health care reform.

Why we need to spend a trillion to reform an already cost bloated system defies logic, but that is the direction we're headed.