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we all do it, I imagine. I just thought it might be time to clarify.
like you I've been able to grow my savings in retirement. I still have a mortgage but low interest/managable payments. that's about it besides the usual utilities and other monthly discretionary bills which are totally in my control.
as you note, I also have medical through my former employer which I am eternally grateful for.
If I remember correctly, you stuck with your BCBS and did not take Part B on top of it? Or is that another Old Fed?
Groceries, Car Gas, Recreation, Entertainment, Clothing, Gifts, Miscellaneous*: $14,400
Medicare/Med Supplements, Dental and Co-Pays: $10,800
Utilities, including phone and internet: $6,240
Property Taxes: $4,440
Major Expenses**: $2,000
House Insurance $1,500
Car Insurance: $1,080 TOTAL: $41,060
*Everything that we don't have an automatic deduction or receive a bill
**These are irregular expenses of more than $300, such as getting a new major appliance, but I would say these average a total of about $2,000 per year. If it is less than $200, it is included with the first 'miscellaneous' category.
We have only been retired for about 3 1/2 years, and so far, the only unexpected expense was some major dental work that cost about $2,500 out of pocket (total).
This is my budget except my housing is higher and medical lower and two cats typically add another $9k-$10k per year to that. I have been trying to narrow down those expenses so that I can make an allocation for their care and feeding in the event I die ahead of them. Their medical insurance is $1.8k a year, food and snacks are $1.5k, litter and litter supplies run $1.6k, Exams and shots, etc $1k, Dental work and cleanings, $4k (they have a specialty dentist), medication is mostly covered, but, supplements are not (add another $300ish). I'm not sure why, but, this pet aspect has gotten so expensive? Except they hosed us. I am not retiring until I am down to one cat (my exceedingly healthy rescue cat whom has still cost me thousands in dental bills with his bad teeth from having been out on the lamb). Bunny is 17 and has been circling the drain for a couple of years. She could still go on another couple of years (who knows - she's always been spoiled rotten). Bailee the rescue, muted orange tabby boy is somewhere between 11-14 and is so healthy now that we stabilized his mouth (it took from 2017-2022) poor guy. He has no other health issues (though probably arthritis is developing - because it does). Expect to have Bailee around until I am 70ish. No more cats after that because I cannot assure them I will not die on them.
I do not expect to spend much less than $50k in retirement. Some years a little more and some years a little less.
I can easily project our retirement Expenses in a decade when we retire. I know what we'd be doing.
To be safe, I'll add on a little extra expenses as a buffer
Prop tax- $150 (we live in a barn on property in a Tiny Home inside the barn)
Healthcare- $275 (Part B for him + our $50 a month retiree healthcare benefits)
Transport- $300 (E-car, E-bikes, pick up. AAA Towing, insurance, gas, tires. Solar most of the year)
Utilities- $175 (DIY Solar)
Food- $700. Grow 30% of our food via a garden. Eat out at an Organic Restaurant(s)
Pets- $100
Garden- $50
Clothes, accessories- $100
Unexpected- $150
Giving- $175
Memberships- $25. Youtube, etc
------------------------------
$2200. Combined Social Security- $2300 a month. $150k+ in IRA by age 65. About $250k by age 75
When we are 75 years old and RMD's are required, it's time to start withdrawing and consider renting a small dwelling instead of living off-grid, I'll estimate $1600 a month for a small dwelling including utilities.
I am likely working one shift a week until age 70-75, health dependent, to put away cash. An 18-24 hr sleep shift is my goal for in retirement. We could sell the land if in a bind ...but we want our son to inherit it along with the car and whatever cash I have left stashed in the house.
Last edited by TruckeeTami; 03-10-2024 at 08:07 PM..
This is my budget except my housing is higher and medical lower and two cats typically add another $9k-$10k per year to that. I have been trying to narrow down those expenses so that I can make an allocation for their care and feeding in the event I die ahead of them. Their medical insurance is $1.8k a year, food and snacks are $1.5k, litter and litter supplies run $1.6k, Exams and shots, etc $1k, Dental work and cleanings, $4k (they have a specialty dentist), medication is mostly covered, but, supplements are not (add another $300ish). I'm not sure why, but, this pet aspect has gotten so expensive? Except they hosed us. I am not retiring until I am down to one cat (my exceedingly healthy rescue cat whom has still cost me thousands in dental bills with his bad teeth from having been out on the lamb). Bunny is 17 and has been circling the drain for a couple of years. She could still go on another couple of years (who knows - she's always been spoiled rotten). Bailee the rescue, muted orange tabby boy is somewhere between 11-14 and is so healthy now that we stabilized his mouth (it took from 2017-2022) poor guy. He has no other health issues (though probably arthritis is developing - because it does). Expect to have Bailee around until I am 70ish. No more cats after that because I cannot assure them I will not die on them.
I do not expect to spend much less than $50k in retirement. Some years a little more and some years a little less.
You can make your own home-made dog/cat food. This will cut down on food AND vet bills dramatically but. maybe it's too late. Dog & cat food, even the cheap stuff, costs more than making your own wholesome homemade Vet approved food. A holkistic vet told us of her experience moving to homemade, she loves animals and they saved thousands per year. ust a thought.
You can make your own home-made dog/cat food. This will cut down on food AND vet bills dramatically but. maybe it's too late. Dog & cat food, even the cheap stuff, costs more than making your own wholesome homemade Vet approved food. A holkistic vet told us of her experience moving to homemade, she loves animals and they saved thousands per year. ust a thought.
I bake organic chicken breast for Bunny; Bailee does not like any human food (he will take a bite here and there). But, it supplements about 50% of their cat food. My vet is okay with what I am doing; but, does not recommend feeding a raw diet.
My fur aliens are just expensive. That's all. Everything about their regular stuff just shot up in price.
Wilie, everything pet related has gotten really expensive. My groomer doubled their prices in 5 years. Luckily I found a good one that was significantly cheaper but it took me a year to find her. I think it’s worth it to feed high quality food and one is on an expensive special diet. My yearly pet expenses are between 5-10k/year. The big variable is vet expenses.
I bake organic chicken breast for Bunny; Bailee does not like any human food (he will take a bite here and there). But, it supplements about 50% of their cat food. My vet is okay with what I am doing; but, does not recommend feeding a raw diet.
My fur aliens are just expensive. That's all. Everything about their regular stuff just shot up in price.
Supplementing 50% of their cat food sounds good to me
over drawing each year will allow someone to have the money , but eventually they can be very short later on .
so at least knowing what you spend vs your balance is a good idea
Fortunately, I don't have to worry about what my balance is to draw on, since I have lifetime income streams from 3 pensions, one annuity, Social Secuity, and my OPM retirement account. The total isn't huge, but it's sufficient for my needs. My vehicles are paid for; the mortgage is just over $1,000 monthly for a 3 BR/2BA in a nice, safe location; and I have no other debt. I lead a very low-key lifestyle, with pet supplies/care, new plants, and occasional antiques being my largest expenses. However, there's always funds to cover them with a monthly surplus. I'm good with that.
Interesting to read all the posts in this thread, although one can't actually compare unless locale and cost of living there are taken into account.
I have recently downsized and have much more in income and savings than I ever expect to need, but in no rush to spend it. Happy to leave my kids each a bundle. Not that any of them need it.
But there is a good feeling just living comfortably within one's means and having money in savings if it is needed.
One of the smartest decisions I made was leaving HCOL northern Virginia after retirement and moving to a relatively LCOL area ( rural southside Virginia and then the Raleigh area ).
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