How many $$ will you need when you retire to live on?

[ladytoysdream]

Not sure the answer here...

Plan here is to have the vehicle paid off end of this year, and then that payment goes snowball after the HEL. Mortgage was paid off years ago. We did some upgrades and put in a outside wood furnace. So plan is to only have the utilities, fire and vehicle insurance, groceries and gas.

Hubby wants to early retire in 2 yrs. Then work part time for a farmer truck driving. I put a plan into place last year for some extra part time money.

Then, the monkey wrench hits. Hubby fell a few weeks ago, and it appears he is looking at some kind of surgery on his knee. We hope it is minor, and won't affect his working. Good health insurance. But if he has to go out on disability for 4 to 6 weeks to heal from his surgery, that is going to dent his income. I reminded him again today, that I will start the sinking fund for taxes this month, and it will not be used on other things. It's there, but it's not there.

We're going to be poor in retirement. The less bills we have, the better off we will be.
We have simple needs....so we will make it ..........

[frugalman]

I'm still working. DW hasn't had a job in 4 years now. We just make do with less. Currently working hard to pay off our mortgage, our last debt. Spreadsheet shows it pays off by April of 2013, if nothing untoward happens. I'm shooting to retire on my 66th birthday. Social security projects $2,507 a month for me, $1,254 for DW plus we will get a small pension of $800 a month. Total retirement income therefore $4,561 per month. We haven't saved as much as we'd like, but have about $250,000. Plus whatever we can save between now and retirement. Our needs are simple, but we'd love to do some traveling. I'm figuring roughly $900/mo for property taxes, auto and home insurance and utilities, plus $300/mo medicare costs. Figuring $300/week for groceries, gas, general living expenses makes a total of $2,400 living expenses. So we would have available savings of $2,161/mo after expenses. One of my friends works for Enterprise Rentacar part time while retired. I might like to work for a golf course principally to get free golf (we love it) and a few extra bucks would be nice too.

[forHISglory]

I'm still working. DW hasn't had a job in 4 years now. We just make do with less. Currently working hard to pay off our mortgage, our last debt. Spreadsheet shows it pays off by April of 2013, if nothing untoward happens. I'm shooting to retire on my 66th birthday. Social security projects $2,507 a month for me, $1,254 for DW plus we will get a small pension of $800 a month. Total retirement income therefore $4,561 per month. We haven't saved as much as we'd like, but have about $250,000. Plus whatever we can save between now and retirement. Our needs are simple, but we'd love to do some traveling. I'm figuring roughly $900/mo for property taxes, auto and home insurance and utilities, plus $300/mo medicare costs. Figuring $300/week for groceries, gas, general living expenses makes a total of $2,400 living expenses. So we would have available savings of $2,161/mo after expenses. One of my friends works for Enterprise Rentacar part time while retired. I might like to work for a golf course principally to get free golf (we love it) and a few extra bucks would be nice too.

Congrats on a plan! Depending on where you live, your projected income should do you nicely. You may not use as much gas after you retire. We found our usage fell dramatically after retirement. Working part time is good, even if it were not for the money. It gives social contact, and a reason to be up in the morning, and mental stimulation. We like to travel also, so we spend time planning a trip, and then saving towards it. We make it work! You may need to rethink medicare costs, plus other medical costs. I imagine medicare and supplement policies are going to soar far beyond what we think, and as you age, medical costs seem to keep going on and on. When you pay off your mortgage, if you can, snowball that amount into your savings. Boost it as much as you can now. My best to you, and hope you enjoy retirement as much as we do!!

[frugalman]

Good thoughts, forhisglory. We work hard on staying healthy. That's no guarantee, but it's all we can do. For example, i work out 45 mins a day, 5 days a week. We have switched over to primarily a plant based diet after watching the movie Forks over Knives twice on Netflix instant streaming. I've lost 70 pounds in the past two years and feel great.

Theoretically, medicare should take care of any major medical expenses. And we'll have some savings. That's all we can do.

[Spirit Deer]

We've been discussing this lately. We think we'll be okay financially, for reasons I don't care to discuss online. We won't be rich, but should be able to cover our medical and living expenses unless something catastrophic happens. We've always been cheap and are getting moreso as we get older. After all, we've had decades to acquire the things we need, so we already own most of what we're likely to need for the rest of our lives.

If we decide it's too expensive to remain in Minnesota, we've talked about biting the bullet and moving back to South Dakota which is one of the most retiree-friendly states in the country due to the tax situation there. We'd hate it since we hated it the last time, but I think we could do it. We'd look for a smaller house and we're already working on downsizing our possessions.

We'll see what happens over the next ten years or so.

Time sure flies. Retirement will be here before we know it.

[peanut]

The more I look at our situation, the better it looks for us. DH is leaning towards not retiring early, due to changes in CPP and OAS.

I agree you don't need as much as the 'experts' say. I also had a financial planner look over our financial situation and exclaim how little we spent per month. I didn't think so, but he did! Compared to some of you here on the Village, I'm a positive spendthrift! Still, we expect our income in retirement to be about 60% of what we get now. And, seeing as salary deductions are 30% and won't be there in retirement, we will really only see a net drop of 10%. We are already saving 30%-50% of net, so we think we will be okay.

Worst case scenario is medical expenses take over any extra cash. This is Canada and we have universal health care, but drugs are another matter altogether. I'm already looking at over $200/mth...with 80% coverage. One reason I am altering lifestyle now and using alternative medicine to nail down the underlying causes of some of my health issues. I've also switched to a more plant based diet.

ETA: Last resort is to sell the house and downsize. Could easily free up cash to live on for another 200 months doing that...

[annymoll]

I think we will continue to have employment income throughout a percentage of our golden years. My husband is a workaholic and he loves his work. I expect him to continue until he is forced out. His father worked until he was 78 years old, then worked three days a week for the next 2 years. Still sharp as a pin, light on the feet, and productive.I think we will be fine. After retirement we will still have an income producing farming corporation, investments and property. I want to sell the house and land that goes with it, move to Arkansas in a smaller home and have an active lifestyle . Swimming, golfing, gardening, fishing....... a person can dream, can't they?I hope I'm not in a nursing home wondering where in the heck I am.

[Sophiasmama]

We did this exercise with our financial planner...and we need 50,000 net a year to retire the way we'd like(this is including $12000 a year for vacations). We are socking away $30000 a year for retirement and are on base to retire in 15 yrs with over 3 million(conservatively). As our home will be paid off in 3 yrs, we'll bump up savings to 36000 a yr. Hoping for the best,planning for the worst.

[nuisance26]

We did this exercise with our financial planner...and we need 50,000 net a year to retire the way we'd like(this is including $12000 a year for vacations). We are socking away $30000 a year for retirement and are on base to retire in 15 yrs with over 3 million(conservatively). As our home will be paid off in 3 yrs, we'll bump up savings to 36000 a yr. Hoping for the best,planning for the worst.

~Even inflation adjusted, you're probably saving more than you need to. In your projected scenario you will be living off the dividends in a conservative or even recessive economy. And only the net dividend since your payouts will be so high that the government will want a huge share. You will never need to pull from the balance. Which means someone else is going to inherit your 3 million. After the government get their inheritance taxes that is. Of course, if you're socking that $30K into an IRA, which is already taxed, and not a 401K or other investment plan that taxes during withdrawal, you may come out ahead. Did your financial planner figure in any SSA benefit into your projected income during retirement?
You're in a unique position by being someone who might be saving too much. If you're perfectly happy with your lifestyle now then by all means, save. However, I think traveling while you are younger is a better option even if it means you don't save as much. And you won't see so much of your stock profits go to taxes. You'll be healthier to enjoy your travels as well.
Even though our SSA benefit won't be all that impressive, I figured we'd need just $800K for a 25 year retirement. Of course we plan to and are on track to save much more. Especially since I'd like DH to retire 10 years early.~

[Sophiasmama]

~Even inflation adjusted, you're probably saving more than you need to. In your projected scenario you will be living off the dividends in a conservative or even recessive economy. And only the net dividend since your payouts will be so high that the government will want a huge share. You will never need to pull from the balance. Which means someone else is going to inherit your 3 million. After the government get their inheritance taxes that is. Of course, if you're socking that $30K into an IRA, which is already taxed, and not a 401K or other investment plan that taxes during withdrawal, you may come out ahead. Did your financial planner figure in any SSA benefit into your projected income during retirement?
You're in a unique position by being someone who might be saving too much. If you're perfectly happy with your lifestyle now then by all means, save. However, I think traveling while you are younger is a better option even if it means you don't save as much. And you won't see so much of your stock profits go to taxes. You'll be healthier to enjoy your travels as well.
Even though our SSA benefit won't be all that impressive, I figured we'd need just $800K for a 25 year retirement. Of course we plan to and are on track to save much more. Especially since I'd like DH to retire 10 years early.~

I agree with you...and we are also travelling while young...our hopes of retiring around 15-17 yrs from today...Maybe in 10 yrs we'll work on building our cabin,instead of waiting until we retire to do it. Our lifestyle is very relaxed and comfortable. We don't believe in buying brand new cars, or upgrading to a $600,000 house which we thought about recently...but we wouldn't be living our true life. Thanks for posting!!!!

[Spirit Deer]

We already have the cabin. Well, it's a house on the lake, but the idea is the same. Living in the country near a small town at the end of the road is one reason we are discussing moving elsewhere when we retire.

We absolutely love where we live. Love it, can't say enough good about it. We live in a place that makes other people green with envy because it's so beautiful here. But having had to deal with my mom's health issues over the past five years, we've come to realize that aging somewhere where serious health care isn't nearby is not a good idea.

We have a hospital here, but they offer limited services such as delivering babies. Our other options for health care for more serious health issues are 110 miles away at the main clinic/hospital complex, or at another satellite clinic/hospital seventy miles away. Neither of these is a good option for elderly people who are sick.

If you have family who can drop everything and drive you to your medical appointments like my mom has, then it's not as much of an issue, although it does take a physical and financial toll. But if you have no one to help you, then it becomes a huge problem. That's what we're facing. As we age, health problems become more likely and more difficult to deal with. After having dealt with my mom's problems and seen up close and personal what a burden it is for everyone involved, we're now realizing being miles from town and lots more miles from full-service medical care is probably not our best retirement plan.

I'm really not happy my mom got sick and I was glad to help her out, don't get me wrong, but it's been a good reality check for us. It will kill us to leave our current home, but that option is definitely on the table, and I'm glad it came up before we actually have to decide where to retire. And now that it has come up, nearby access to good medical care is the #1 priority for anyplace we look at for retirement. It's not where we want to live, but it seems like the most practical consideration.

Just some food for thought.

[Sophiasmama]

We already have the cabin. Well, it's a house on the lake, but the idea is the same. Living in the country near a small town at the end of the road is one reason we are discussing moving elsewhere when we retire.

We absolutely love where we live. Love it, can't say enough good about it. We live in a place that makes other people green with envy because it's so beautiful here. But having had to deal with my mom's health issues over the past five years, we've come to realize that aging somewhere where serious health care isn't nearby is not a good idea.

We have a hospital here, but they offer limited services such as delivering babies. Our other options for health care for more serious health issues are 110 miles away at the main clinic/hospital complex, or at another satellite clinic/hospital seventy miles away. Neither of these is a good option for elderly people who are sick.

If you have family who can drop everything and drive you to your medical appointments like my mom has, then it's not as much of an issue, although it does take a physical and financial toll. But if you have no one to help you, then it becomes a huge problem. That's what we're facing. As we age, health problems become more likely and more difficult to deal with. After having dealt with my mom's problems and seen up close and personal what a burden it is for everyone involved, we're now realizing being miles from town and lots more miles from full-service medical care is probably not our best retirement plan.

I'm really not happy my mom got sick and I was glad to help her out, don't get me wrong, but it's been a good reality check for us. It will kill us to leave our current home, but that option is definitely on the table, and I'm glad it came up before we actually have to decide where to retire. And now that it has come up, nearby access to good medical care is the #1 priority for anyplace we look at for retirement. It's not where we want to live, but it seems like the most practical consideration.

Just some food for thought.

We discussed this too...the closest town is 5 miles w/ a grocery store,gas station,and a health centre...but one day we'll be old(if lucky) and as of now to get to a DR's app. it is a 45minute drive. Maybe there will be more services in the area in the coming years.

[Spirit Deer]

My mom lives fifteen miles from the local clinic in our town. It's getting harder and harder for her to drive herself. (She's in her eighties.) All her friends are elderly, and many are in worse physical condition than her, so there's no one to help her. She will not even consider moving even to our town where there are a lot more services for her and where we could help her much more easily. Why? Because she does not want to give up all the stuff she's collected over her lifetime.

FIL lived on a farm nine miles out of town. He reached a point where he was heavily dependent on the neighbors to help him, as in they pretty much did everything for him. My husband is an only child and we were 350 miles away. In a practical sense, we could do nothing for him. He eventually became so ill he was hospitalized and the doctor told him he would not release him if he was going back to the same bad home situation. FIL relented and allowed my husband to move him up here. We did everything for him, ran his errands, handled his banking, took him to his appointments, etc. He died a mean, bitter old man who made us pay for it every single day because he had to leave the farm and that was our fault, somehow.

We are determined not to be like either of them and be so stubborn we refuse to see the writing on the wall before things are so far gone there's no opportunity to make a plan we can live with. We're working hard not to be so in love with our stuff we can't part with anything, either.

We are seven miles out of town and we can see how it is with elderly drivers and how difficult it could become even to go that far. And if either of us ends up alone, we're also aware how long it might be if we fell or were sick, for anyone to check on us. Scary thought.

It's a lot to consider. I don't know what will happen. Who knows, we might both be dead by then or one of us may be and the other wouldn't want to stay out here or one or both of us might be deathly ill before retirement. So for now, we're just discussing options and thinking about possibilities and advantages and disadvantages. Mostly, we're working on changing our mindset about what living conditions will be acceptable. That's a tough one when you're living in your dream spot that took decades to achieve. So it's a good thing we have a few years to change our attitudes.

[forHISglory]

We already have the cabin. Well, it's a house on the lake, but the idea is the same. Living in the country near a small town at the end of the road is one reason we are discussing moving elsewhere when we retire.

We absolutely love where we live. Love it, can't say enough good about it. We live in a place that makes other people green with envy because it's so beautiful here. But having had to deal with my mom's health issues over the past five years, we've come to realize that aging somewhere where serious health care isn't nearby is not a good idea.

We have a hospital here, but they offer limited services such as delivering babies. Our other options for health care for more serious health issues are 110 miles away at the main clinic/hospital complex, or at another satellite clinic/hospital seventy miles away. Neither of these is a good option for elderly people who are sick.

If you have family who can drop everything and drive you to your medical appointments like my mom has, then it's not as much of an issue, although it does take a physical and financial toll. But if you have no one to help you, then it becomes a huge problem. That's what we're facing. As we age, health problems become more likely and more difficult to deal with. After having dealt with my mom's problems and seen up close and personal what a burden it is for everyone involved, we're now realizing being miles from town and lots more miles from full-service medical care is probably not our best retirement plan.

I'm really not happy my mom got sick and I was glad to help her out, don't get me wrong, but it's been a good reality check for us. It will kill us to leave our current home, but that option is definitely on the table, and I'm glad it came up before we actually have to decide where to retire. And now that it has come up, nearby access to good medical care is the #1 priority for anyplace we look at for retirement. It's not where we want to live, but it seems like the most practical consideration.

Just some food for thought.

And some more to think about: We moved to Iowa from MO to help care for aging parents. We took quite a hit in many different ways with that move: property taxes are triple what they were in MO for a similar size and age of home, license fees for vehicles were about 5-6 times higher, income tax is much higher (we would not have had much state income tax in MO because it came from pension), utility bills are much higher, gasoline is higher, and the list goes on. We knew those things before we moved, but felt that we needed to move, anyway. So it wasn't a surprise. However, the surprise came with our health care. We knew that the town we were moving to had a good hospital, and we knew that the hospital was covered by our insurance plan. We also had researched to make sure that there were doctors there on our plan. But what we did not realize was that there was a huge doctor shortage in the area. I was without doctor care for 9 months after we moved because no one would take me on their caseload. The town is begging for doctors to come, but there are very few takers. So a nice hospital is great.... as long as there are doctors to staff it. And there are few specialists. When I had a recent problem, I had a choice of traveling to Omaha or St. Louis to get a specialist to treat me. So look carefully into the health care before you move!

[Spirit Deer]

Excellent point.

I think I'll start a new thread about this topic, so as not to further hijack this one.

Thanks!