Is it Less expensive or More expensive..

[Thevail]

to be retired?

I was thinking about this the other day.

Most people make more money when they're working, but all the big expenses like buying a house and raising kids also happen when you're that age too. Also, a lot of the budget wrecking emergencies tend to happen in the child raising years (ER visits, etc.).

On the other hand...with the house paid off (or close) and the kids gone, no need for work clothes, no daily commute...even if your retirement income is lower you'd think the bills would be too.

But..with more free time (that'll be novel) to spend together...wouldn't you end up going more places and doing more things (that you'd been waiting 20 years to do) and thus spending more money. And I've heard that health care expenses really begin to mount up after you've retired.

So anyone have any ideas...is being empty-nesters or retired more or less expensive than working and raising a family?

[dcompton]

I'm not yet retired so I don't know, but unfortunately, I expect that they may be more - and how they will be paid for is going to be interesting. My work related expenses are minimal - very short commute, casual clothing - but I expect my health care costs to rise. But that's very hard to predict, and who knows what will happen to the health care system over the coming years. At any rate, I really don't see that I would have much that would be cut out by retiring.

As for going more places and doing more things - that's just not me. I don't expect my lifestyle to change much on that score. Just more time to read, crochet, and play around. I imagine my yarn bill will increase!

[Thevail]

My mom says healthcare goes way up because it's no longer employer subsidized...as well as many health problems like high cholesterol, high blood sugar, arthritis, etc. that tend to hit after 50..

[Must-Stash]

I think it would depend on many things. Do you downsize and/or relocate to an area where the cost of living is less? Do you qualify for a pension, social security or medicare? Do you maintain your previous lifestyle or live much more simply and frugally? Does traveling, entertaining and golfing make you happy or are you just wanting to enjoy the simply pleasures home and family have to offer?

Health care, as we know it, is the most frightening, and prohibitive component to retirement for many of us IMHO.

[Thevail]

Sometimes I really wonder if anyone will ever get to retire again between inflation, healthcare costs, and the boom and bust bubble cycle where everyone loses all their investments every 10 years or so.

[forHISglory]

We are retired, and our lifestyle has not changed except I get to sleep in and don't have to go to work every day! Wheeeee.......

There are trade offs, and I urge you to plan carefully as you approach retirement. I no longer have a long commute, which saves much on gas and car expenses. I never ate lunch out, always brown-bagged, so no saving there. I had a professional wardrobe, which I no longer need, so I'm saving there. I no longer have professional dues, or have to do professional travel. I had to buy supplies for my classroom, and not all were reimbursed, so that expense is now gone. I no longer contribute to my retirement fund, and that was a big chunk of change!!

On the other hand, we now pay all of our insurance costs, even though we are fortunate to still belong to the school insurance group. Our utilities have gone up slightly since we are home more.

We both still teach part time, which brings in some nice extra money. But I only have to drive 10 minutes to the campus twice a week, teach and then go home. Hubby goes in one hour a day, and two hours on some days. It's a great schedule!

We live cheaply, always have. So our standard of living has not dropped at all. We just have more time to enjoy it!

[cau]

We are luck enough to have decent insurance to pay what Medicare doesnot but generally we do fine. I find retirement is more about finally having time to do what you want not what you have to do.