Author Topic: What's your retirement annual spending?  (Read 11879 times)

albireo13

  • Bristles
  • ***
  • Posts: 490
  • Location: New England
What's your retirement annual spending?
« on: September 28, 2017, 05:00:34 AM »
Working on a retirement budget and am depressed by the numbers.  I want to get to <$80K.
Problem is we will be carrying a healthy mortgage, that means $2550/month.  Also, am assuming health insurance of maybe $1500/mo.

WE have no shot at paying off the mortgage but, plan on down sizing again in the 5+ year time frame.

What do other folks have for retirement annual burn rate?

Fishindude

  • Handlebar Stache
  • *****
  • Posts: 2135
Re: What's your retirement annual spending?
« Reply #1 on: September 28, 2017, 06:51:58 AM »
Just retired a year ago, budgeting for +/- $140K annual spending.   Not very Mustachian I know, but that's how we operate.  Could live a lot cheaper if we had to, but no plans to do so unless financially forced into a corner.   Have invested in a number of things that churn out steady income streams to support this spending.

lifeanon269

  • Bristles
  • ***
  • Posts: 337
Re: What's your retirement annual spending?
« Reply #2 on: September 28, 2017, 07:47:11 AM »
I am ten years out from my FIRE date, so I have a long way to go still, but I am targeting about $35k give or take a couple thousand. I'm in a pretty LCOL area though and my mortgage is only about $760 and we have no debt other than that. I could see my lifestyle inflating to maybe $40k if my investments do well and I keep my FIRE date the same, but I'm remaining both conservative and flexible. So we'll see how it goes!

wenchsenior

  • Handlebar Stache
  • *****
  • Posts: 2209
Re: What's your retirement annual spending?
« Reply #3 on: September 28, 2017, 07:59:59 AM »
I find this a bit tough to project as well.  Also, I'm quite risk averse.

We currently spend between 65K and 80K/yr, but that includes owning two houses and support for an adult in that separate household. That support is likely to overlap our retirement for at least 10 years, possibly longer.  In addition, we are in an extremely low COL area that we do not want to stay in.

So, right off the bat, I feel more comfortable projecting 80K/yr rather than 65K.  Add to that the fact that we do not have kids, and we are therefore unlikely to be downsizing or otherwise reducing housing costs (see cheap COL that will not last).  I expect we will carry a mortgage well into retirement, and possibly more or less forever (or pay rent instead).  We have one car, and our work expenses are negligible, so the usual advice about clothes/dry cleaning/extra cars/commuting expenses reducing do not apply to us. Also, we currently work nearly all the time and don't spend much money for anything fun, so I hope/expect at least some more money will be spent actually enjoying ourselves.

In short, I expect our retirement costs to INCREASE, based on increased COL costs and increased health care costs.

So I aim for 80K/yr as our desired baseline, and hope/plan for income more in the 90K to 100K range.

DarkandStormy

  • Handlebar Stache
  • *****
  • Posts: 1162
  • Age: 30
  • Location: Midwest, USA
Re: What's your retirement annual spending?
« Reply #4 on: September 28, 2017, 08:13:11 AM »
What are ya'll spending $50K+/year on?  Just curious...either pre-FIRE or post-FIRE peeps, if you have a high-level budget/idea of your monthly spend.   Not anywhere close to FIRE, but just can't imagine, even if I go crazy, spending $4k+/month.

Laura33

  • Handlebar Stache
  • *****
  • Posts: 2390
  • Location: Mid-Atlantic
Re: What's your retirement annual spending?
« Reply #5 on: September 28, 2017, 08:25:10 AM »
Well, when your mortgage and healthcare alone cost almost $50K/yr, it's going to be hard to fit in everything else under $80K.  Especially since a house with a $30K/yr mortgage likely also has higher property tax/insurance/utility bills.

Can I ask, what is the impetus for the $80K target?  Most specifically, is this something that you are doing to try to make your wife more comfortable with your retirement ideas, or is this something you are doing on your own without her input?  My recollection is that one of your recurring issues is your wife's insecurities about ever having enough to retire vs. your desire to quit as soon as possible, which is leading to recurring disagreements/fights over money.  So if this is part of an effort to help her work through the actual money and budgets to ease her anxiety and prove you have enough, then go forth and conquer that budget.  But if she isn't involved and this is something else you want to present to her as a fait accompli, you might want to consider engaging her in the process -- both for the value of doing the analysis/making the decisions together, and because you and she will inevitably have different ideas about what it's reasonable to cut and by how much, so presenting her with an answer that requires her to make cuts she doesn't like is not likely to be well-received.

wenchsenior

  • Handlebar Stache
  • *****
  • Posts: 2209
Re: What's your retirement annual spending?
« Reply #6 on: September 28, 2017, 08:37:27 AM »
What are ya'll spending $50K+/year on?  Just curious...either pre-FIRE or post-FIRE peeps, if you have a high-level budget/idea of your monthly spend.   Not anywhere close to FIRE, but just can't imagine, even if I go crazy, spending $4k+/month.

To repeat: "...that includes owning two houses and support for an adult in that separate household."

DarkandStormy

  • Handlebar Stache
  • *****
  • Posts: 1162
  • Age: 30
  • Location: Midwest, USA
Re: What's your retirement annual spending?
« Reply #7 on: September 28, 2017, 08:49:12 AM »
What are ya'll spending $50K+/year on?  Just curious...either pre-FIRE or post-FIRE peeps, if you have a high-level budget/idea of your monthly spend.   Not anywhere close to FIRE, but just can't imagine, even if I go crazy, spending $4k+/month.

To repeat: "...that includes owning two houses and support for an adult in that separate household."

I wasn't talking about your example.  Just the generic "$100+K/year to be safe" I've read here and other topics.

Mortgage(s) can complicate things since it won't be around forever.  Really should only skew your first few (or however many years left to pay it off) of RE.

NotJen

  • Bristles
  • ***
  • Posts: 416
Re: What's your retirement annual spending?
« Reply #8 on: September 28, 2017, 08:52:44 AM »
My goal is $33,000 annually in retirement.  That's been my approximate spending for the last two years, and this year is shaping up to be less.  Healthcare is the big unknown I'm not sure how to plan for.

charis

  • Handlebar Stache
  • *****
  • Posts: 1771
Re: What's your retirement annual spending?
« Reply #9 on: September 28, 2017, 08:55:34 AM »
What are ya'll spending $50K+/year on?  Just curious...either pre-FIRE or post-FIRE peeps, if you have a high-level budget/idea of your monthly spend.   Not anywhere close to FIRE, but just can't imagine, even if I go crazy, spending $4k+/month.

To repeat: "...that includes owning two houses and support for an adult in that separate household."

I wasn't talking about your example.  Just the generic "$100+K/year to be safe" I've read here and other topics.

Mortgage(s) can complicate things since it won't be around forever.  Really should only skew your first few (or however many years left to pay it off) of RE.

Mortgage, kids, daycare, health care.  I know some of that won't be around after retiring but more could be added (college, traveling, expensive health care, etc), but we call it a win if we can stay under 4K - which is rare this year.  There is no "going crazy" involved.   

Fishindude

  • Handlebar Stache
  • *****
  • Posts: 2135
Re: What's your retirement annual spending?
« Reply #10 on: September 28, 2017, 08:58:41 AM »
What are ya'll spending $50K+/year on?  Just curious...either pre-FIRE or post-FIRE peeps, if you have a high-level budget/idea of your monthly spend.   Not anywhere close to FIRE, but just can't imagine, even if I go crazy, spending $4k+/month.

We have no debt, but own three houses and a whole bunch of real estate.
Honestly, just piss away a lot of $$ having fun.

wenchsenior

  • Handlebar Stache
  • *****
  • Posts: 2209
Re: What's your retirement annual spending?
« Reply #11 on: September 28, 2017, 09:00:12 AM »
What are ya'll spending $50K+/year on?  Just curious...either pre-FIRE or post-FIRE peeps, if you have a high-level budget/idea of your monthly spend.   Not anywhere close to FIRE, but just can't imagine, even if I go crazy, spending $4k+/month.

To repeat: "...that includes owning two houses and support for an adult in that separate household."

I wasn't talking about your example.  Just the generic "$100+K/year to be safe" I've read here and other topics.

Mortgage(s) can complicate things since it won't be around forever.  Really should only skew your first few (or however many years left to pay it off) of RE.

Mortgage, kids, daycare, health care.  I know some of that won't be around after retiring but more could be added (college, traveling, expensive health care, etc), but we call it a win if we can stay under 4K - which is rare this year.  There is no "going crazy" involved.

Yeah, we're on track to hit 10K of out of pocket spending on health care this year, and nothing life threatening has happened.  And we aren't close to retirement age yet.

DarkandStormy

  • Handlebar Stache
  • *****
  • Posts: 1162
  • Age: 30
  • Location: Midwest, USA
Re: What's your retirement annual spending?
« Reply #12 on: September 28, 2017, 09:57:57 AM »
What are ya'll spending $50K+/year on?  Just curious...either pre-FIRE or post-FIRE peeps, if you have a high-level budget/idea of your monthly spend.   Not anywhere close to FIRE, but just can't imagine, even if I go crazy, spending $4k+/month.

We have no debt, but own three houses and a whole bunch of real estate.
Honestly, just piss away a lot of $$ having fun.

Ah, ok.  I guess I should have added the qualifier "with only one mortgage" or something like that.
« Last Edit: September 29, 2017, 06:56:53 AM by DarkandStormy »

albireo13

  • Bristles
  • ***
  • Posts: 490
  • Location: New England
Re: What's your retirement annual spending?
« Reply #13 on: September 29, 2017, 05:14:14 AM »
My goal of $80K is more a comfort level thing for us.
I did a retirement budget and 1st cut spending was $100K/yr.
We live in a high COL area unfortunately.

The house and all utilities and services runs $3500/mo.  I also budget $1500/mo health insurance.  Just that, without any food, travel, living, etc is $60K!
Need to knock that down somehow.  The mortgage is new and we have 29 years left on it.  We could possibly downsize again to a smaller mortgage.

Hopefully the $1500/mo can go away once we get to 65 and Medicare.

We also both have life insurance, totaling $2200/yr.  Maybe it's time to ditch that??

  The good news is that once SS and pensions kicks in for both of us, we can meet $100K budget with < 1% WR on our retirement savings.
That won't happen until I reach 66yo+ so we have to bridge about a 5 year gap to get there.


BTW, my wife is OK with me doing the budget work.  She doesn't enjoy working numbers and spreadsheets so, leaves that to me.
I'm an engineer by trade so I am well used to obsessing about excruciating detail.






DarkandStormy

  • Handlebar Stache
  • *****
  • Posts: 1162
  • Age: 30
  • Location: Midwest, USA
Re: What's your retirement annual spending?
« Reply #14 on: September 29, 2017, 06:58:46 AM »
^Thank you, Albireo.  I haven't gone through what a full FIRE budget looks like, so I was genuinely asking.  Seems like health insurance is a big (the biggest?) obstacle to tackle for FIRE.

Pigeon

  • Handlebar Stache
  • *****
  • Posts: 1202
Re: What's your retirement annual spending?
« Reply #15 on: September 29, 2017, 07:03:49 AM »
We are about 3-6 years out from RE.  We are planning about $80K/year.  The first few years should be more expensive as the kids are still finishing up college and grad school, and we pay for college and will provide some support in terms of insurance and possibly room and board for grad school if they choose to want to live at home.  We'd like to do a little travel.  By the time we RE the mortgage should just about be gone.

Capt j-rod

  • Bristles
  • ***
  • Posts: 339
Re: What's your retirement annual spending?
« Reply #16 on: September 29, 2017, 07:11:06 AM »
Wow! WTF happened to being a mustacian? I no longer read about being hardcore. My 30 year mortgage will be paid off in 10. First we max out 401k and all other investments. Rentals are set up on a 15 year note that will pay off for FIRE day. The only wild card is healthcare. I'm looking to make $60k post fire and travel heavily with the wife and camper throughout the year. If it's the HCOL area holding you back then consider moving. FWIW we can live off $40k, but that extra $20k buffer is for healthcare. I don't know what happened in this forum, but $60k used to make me feel like an asshat around these parts and now I look hardcore. Maybe that other thread was right, have we all gone soft? Is the mission of MMM lost?

Pigeon

  • Handlebar Stache
  • *****
  • Posts: 1202
Re: What's your retirement annual spending?
« Reply #17 on: September 29, 2017, 07:20:24 AM »
Wow! WTF happened to being a mustacian? I no longer read about being hardcore. My 30 year mortgage will be paid off in 10. First we max out 401k and all other investments. Rentals are set up on a 15 year note that will pay off for FIRE day. The only wild card is healthcare. I'm looking to make $60k post fire and travel heavily with the wife and camper throughout the year. If it's the HCOL area holding you back then consider moving. FWIW we can live off $40k, but that extra $20k buffer is for healthcare. I don't know what happened in this forum, but $60k used to make me feel like an asshat around these parts and now I look hardcore. Maybe that other thread was right, have we all gone soft? Is the mission of MMM lost?

Like any message board that espouses an extreme idea, you're going to get people who are all in at first, and over time you get people who take what they need and leave the rest.  The OP asked a question and people answered.  If you want to FIRE on $25K/year, go for it.  We also want to absolutely be done working when we are FIRE.  No side gigs, no landlording, no part time work.

We've always been pretty frugal, but not MMM frugal.  I've learned some things here that have helped with that.  With our savings, the hardcore MMMs would have been FIREd by now.  We choose to do more for our kids than most here do.  That's important to us, much more so than RE a few years earlier.  We also don't live in an area where it would be manageable without cars as there is no public transport and we work in opposite directions.  We could possibly do with one car when we are retired, depending on what we choose to do for volunteering.

slappy

  • Pencil Stache
  • ****
  • Posts: 808
Re: What's your retirement annual spending?
« Reply #18 on: September 29, 2017, 07:28:41 AM »
I was surprised by the high numbers as well.  I'm shooting for $40k max, but of course healthcare is still an unknown, as others have said. 

boarder42

  • Walrus Stache
  • *******
  • Posts: 7849
Re: What's your retirement annual spending?
« Reply #19 on: September 29, 2017, 01:51:31 PM »
I was surprised by the high numbers as well.  I'm shooting for $40k max, but of course healthcare is still an unknown, as others have said.

are you single or married you said "I" so that number would be the same as the OPs doubled for 2 people.

slappy

  • Pencil Stache
  • ****
  • Posts: 808
Re: What's your retirement annual spending?
« Reply #20 on: September 29, 2017, 01:58:38 PM »
I was surprised by the high numbers as well.  I'm shooting for $40k max, but of course healthcare is still an unknown, as others have said.

are you single or married you said "I" so that number would be the same as the OPs doubled for 2 people.

actually married, but I do all the planning.

bacchi

  • Magnum Stache
  • ******
  • Posts: 4031
Re: What's your retirement annual spending?
« Reply #21 on: September 29, 2017, 02:13:10 PM »
<$35k. It does include some landlording but it'll go away if we move to a LCOL city.

Capt j-rod

  • Bristles
  • ***
  • Posts: 339
Re: What's your retirement annual spending?
« Reply #22 on: September 29, 2017, 03:00:53 PM »
I decided I have to revise my numbers... I left out $5,000 for pumpkin spice lattes and my yoga membership fees😄

albireo13

  • Bristles
  • ***
  • Posts: 490
  • Location: New England
Re: What's your retirement annual spending?
« Reply #23 on: September 29, 2017, 05:23:23 PM »
Haha.
  I guess I need a few face punches.  I've been here maybe 1 year and I've dug out of some tight spots.
I did include >$4k/yr travel in the budget and some slack for eating out.

I wish I had a paid-off house but, that ain't happening.

Raising 5 kids, a few major medical events, etc put a dent in financial planning. 
Still, I am grateful for finding this site and the help from y'all.




boarder42

  • Walrus Stache
  • *******
  • Posts: 7849
Re: What's your retirement annual spending?
« Reply #24 on: September 30, 2017, 04:55:23 AM »
Haha.
  I guess I need a few face punches.  I've been here maybe 1 year and I've dug out of some tight spots.
I did include >$4k/yr travel in the budget and some slack for eating out.

I wish I had a paid-off house but, that ain't happening.

Raising 5 kids, a few major medical events, etc put a dent in financial planning. 
Still, I am grateful for finding this site and the help from y'all.

Not having a paid off house is a good thing. Don't ever wish for bad things

Ocinfo

  • Bristles
  • ***
  • Posts: 313
Re: What's your retirement annual spending?
« Reply #25 on: September 30, 2017, 06:57:29 AM »
I’m planning on $60k but will likely telecommute part time for more than my budget. That being said, will likely be hard to spend that much given I plan to spend time in several LCOL areas.

I’m more interested in what % of working income folks are planning for in retirement. If income is $250k and retirement budget is $75k. Retiring on 30% of income is pretty impressive...


Sent from my iPhone using Tapatalk

life_travel

  • Stubble
  • **
  • Posts: 165
  • Location: Australia
Re: What's your retirement annual spending?
« Reply #26 on: September 30, 2017, 04:11:32 PM »
Iím planning on $60k but will likely telecommute part time for more than my budget. That being said, will likely be hard to spend that much given I plan to spend time in several LCOL areas.

Iím more interested in what % of working income folks are planning for in retirement. If income is $250k and retirement budget is $75k. Retiring on 30% of income is pretty impressive...


Sent from my iPhone using Tapatalk
Not really if pre FIRE savings are 50% ish ... We are also paying off a mortgage that hopefully will be paid off so actually will retire on 25-30% of current income .

MonkeyJenga

  • Walrus Stache
  • *******
  • Posts: 8556
  • Location: the woods
  • resting up for 2020
Re: What's your retirement annual spending?
« Reply #27 on: September 30, 2017, 04:45:24 PM »
Expecting around $15k a year, which I'm at now. That includes some buffer for unnecessary travel.

If I stay in NYC or another high rent city, that could go up a few grand.

Healthcare is of course a wild card. I don't expect large monthly expenses, though.

aspiringnomad

  • Pencil Stache
  • ****
  • Posts: 819
Re: What's your retirement annual spending?
« Reply #28 on: September 30, 2017, 05:36:24 PM »
Expecting around $15k a year, which I'm at now. That includes some buffer for unnecessary travel.

If I stay in NYC or another high rent city, that could go up a few grand.

Healthcare is of course a wild card. I don't expect large monthly expenses, though.

Unbelievably badass to be under or around $20k in NYC. Rock on!

Anniemaygo

  • 5 O'Clock Shadow
  • *
  • Posts: 24
  • Location: Massachusetts
Re: What's your retirement annual spending?
« Reply #29 on: September 30, 2017, 07:28:46 PM »
Did you say $2,200 a year for life insurance?  That seems like an area to get some quotes.  I pay $176/yr for $500k of coverage on a 20year term policy.

MonkeyJenga

  • Walrus Stache
  • *******
  • Posts: 8556
  • Location: the woods
  • resting up for 2020
Re: What's your retirement annual spending?
« Reply #30 on: October 01, 2017, 12:33:22 PM »
Expecting around $15k a year, which I'm at now. That includes some buffer for unnecessary travel.

If I stay in NYC or another high rent city, that could go up a few grand.

Healthcare is of course a wild card. I don't expect large monthly expenses, though.

Unbelievably badass to be under or around $20k in NYC. Rock on!

Thanks! I was much higher before I moved into my current place and got $450 rent. That dropped my baseline expenses to $1,000/mo. Then a few grand more for unusually high travel and medical expenses.

I like your screenname. My original FIRE plan was to couchsurf the world. Where are you hoping to go first?

Cassie

  • Walrus Stache
  • *******
  • Posts: 5789
Re: What's your retirement annual spending?
« Reply #31 on: October 01, 2017, 01:26:33 PM »
We semi-retired 5 years ago. We spend between 62-72k/year.  We spend 12k on health insurance and 10-12k/travel.  At 63 we intend to travel now because we have had 3 good friends die.  We have a low mortgage (650/month).  We also eat out twice a week and go to local events.  When we were working we did not have the time or energy to do this stuff.

Dragonswan

  • Bristles
  • ***
  • Posts: 362
  • Location: Between realms
Re: What's your retirement annual spending?
« Reply #32 on: October 02, 2017, 07:49:28 AM »
My after tax projected retirement budget comes in around 75K.  I've got 8 years to retirement so I've inflated the numbers to reflect what I think inflation will do to the expense.  It's not even close to mustachian but here's how it shakes out (for OP and Dark and Stormy):
21.6K mortgage & prop tax (33K now, got a late start so will have a mortgage for the rest of my life unless I live past 90)
10K for in country travel, no more squeezing into cattle coach and I don't own a backpack
4.8 K cable, internet, cell, netflix (yep I said cable)
2.4 K utilities (plan on moving to a hot state in retirement)
4.8 K groceries (I eat well - lamb, shrimp, lobster, fussy cheese - and entertain often)
5.4 K dining out (I am a foodie and I don't want price to factor into my experience if I can help it) this is a main form of socializing in my circle
6K spa and hair (I am so soft)
3.6 K theater, community college, clothes, housewares (I am not an outdoor person)
7.2K health care - includes gym memberships, inflated to include possible pricey medications as I age
8.4K car and related expenses (if there's a true self driving car in the future I plan to be able to afford it to be independent longer)
The rest is charity and house maintenance.
 

FiguringItOut

  • Pencil Stache
  • ****
  • Posts: 752
  • Location: NYC
Re: What's your retirement annual spending?
« Reply #33 on: October 02, 2017, 10:32:44 AM »
I am about 10-13 years out from retirement.  Right now living in a very HCOL area I spend between $45K and $50K per year after taxes and savings for 3 people.  $29K of that is just rent (not including utilities).  So living expenses for 3 people come to between $16K and $21K per year. 

I plan on moving to LowerCOL area once kids are in college and then to LCOL area once I am retired.  I am guessing needing about $40K/yr in retirement income gross for myself once I am in LCOL area and not supporting kids anymore.  Of course this will be revisited once I am closer to that point and have a better picture of what health insurance would cost and what LCOL are I will end up in.
So far my projections at my current savings rate (at 6% growth) and $40K/yr spending (indexed for inflation at 3%) starting at age 55, and starting receiving SS at age 62, my FIRE projections show that I will have about $2.9M at age 100.  So it seems that I can increase my spending some if needed.  But I will be recalculating this many times between now and when I actually retire to make sure I am on track.
None of this takes into account any future possible relationships, but I have no plans on getting married again, and any kind of living arrangements with a partner should not affect my numbers too much since I have full intentions on keeping finances separate.



rdaneel0

  • Pencil Stache
  • ****
  • Posts: 874
Re: What's your retirement annual spending?
« Reply #34 on: October 02, 2017, 10:45:50 AM »
We're shooting for around $20k post-retirement (with paid off housing) or $40k with housing.

We currently live in NYC and spend $32K to $38k a year total (family of two, renting so most of that is rent). Some of the numbers on here blow my mind.

wenchsenior

  • Handlebar Stache
  • *****
  • Posts: 2209
Re: What's your retirement annual spending?
« Reply #35 on: October 02, 2017, 01:45:35 PM »
We're shooting for around $20k post-retirement (with paid off housing) or $40k with housing.

We currently live in NYC and spend $32K to $38k a year total (family of two, renting so most of that is rent). Some of the numbers on here blow my mind.

That's ok...numbers like yours blow MY mind LOL.  That is seriously impressive for a major city.

I suspect a lot of the number discrepancies are health care related. Considering we've spent almost 10K out of pocket on co pays and premiums for health care this year, about 7K last year, and expect to spend at least another 7-10K NEXT year (and this is with good employer based insurance and no surgery or emergency room visits)...it starts to add zeros to your projected retirement spending real damn quick.  When we were in our 20s and 30s, we lived ok on 30-40/year.  But back then it would have blown our minds that we'd be spending this much on health stuff in our 40s and 50s, let alone possibly when we are older.

aspiringnomad

  • Pencil Stache
  • ****
  • Posts: 819
Re: What's your retirement annual spending?
« Reply #36 on: October 02, 2017, 03:45:54 PM »
Expecting around $15k a year, which I'm at now. That includes some buffer for unnecessary travel.

If I stay in NYC or another high rent city, that could go up a few grand.

Healthcare is of course a wild card. I don't expect large monthly expenses, though.

Unbelievably badass to be under or around $20k in NYC. Rock on!

Thanks! I was much higher before I moved into my current place and got $450 rent. That dropped my baseline expenses to $1,000/mo. Then a few grand more for unusually high travel and medical expenses.

I like your screenname. My original FIRE plan was to couchsurf the world. Where are you hoping to go first?

Southern Europe is the plan, Portugal specifically to start.

FIREySkyline

  • Stubble
  • **
  • Posts: 101
Re: What's your retirement annual spending?
« Reply #37 on: October 04, 2017, 09:21:55 PM »
I'm feeling totally BA. My wife and I are planning to retire on ~$30k. No time to sit at a desk for more of my life! We, like MMM, will probably make money in retirement doing things we want to do, but the $30k number should be sufficient for us in an MCOL area. Anything over $50k seems insane to me and means trading your life for excesses. I'd focus on getting to FIRE and doing what you find most valuable. It's easy to supplement your income by $10k in a year if the need arises, but it's impossible to get your time back and life is short.

elaine amj

  • Magnum Stache
  • ******
  • Posts: 3116
  • Location: Ontario
Re: What's your retirement annual spending?
« Reply #38 on: October 04, 2017, 10:34:35 PM »
I had originally hoped to get down to $46k/yr. Been tracking expenses for a year and have had a bit of a reality check. Looks like a more realistic (if extravagant) budget is $60k/yr. Our household is 2 adults, 2 teens, and a grandparent. We're in a LCOL area and have a fully paid off house. Plus live in Canada so free health care.

Sent from my STH100-1 using Tapatalk


frugaldrummer

  • Pencil Stache
  • ****
  • Posts: 709
Re: What's your retirement annual spending?
« Reply #39 on: October 04, 2017, 11:32:09 PM »
I'm close to regular retirement age, and technically could retire now if I wanted, but I enjoy my career and also want to work a bit longer to ensure my kids will be ok.

I look at my current after-tax income and subtract the things I won't be spending in retirement. By that time I won't be paying for kids in college - that's over a third of my take home budget right now as a divorced mom. My fixed rate 4% mortgage is only $1120 a month, so while my original plan was to pay it off before retirement, I may choose to invest that money instead. Other daily living expenses should not change significantly if I keep the same lifestyle - I expect to spend a similar amount in retirement on travel, clothes, car, eating out as I do now. Once I reach Medicare age my insurance costs will drop by 2-300 a month (I have a bronze plan now) but expensive dental work may increase as I age. Property taxes are pretty stable in my state and run me about $450 a month. I drive an 8 year old Toyota Matrix, buy my clothes at Ross and  Marshalls, got to local rock shows at $20-30 a pop, eat out occasionally but not at expensive restaurants ( my city has abundant good cheap restaurants).

So - overall, if I want the same lifestyle in retirement that I have now, I figure I need $5000 a month. I want extra money set aside for major house repairs as they come up. In a tight year I could probably trim that $5k a month down to $3.5 a month ( including mortgage and property taxes) by simply skipping vacation and eliminating frills. I will also have the options of renting out bedrooms in my house for extra income, or downsizing to eliminate my mortgage.

boarder42

  • Walrus Stache
  • *******
  • Posts: 7849
Re: What's your retirement annual spending?
« Reply #40 on: October 05, 2017, 10:26:20 AM »
I'm feeling totally BA. My wife and I are planning to retire on ~$30k. No time to sit at a desk for more of my life! We, like MMM, will probably make money in retirement doing things we want to do, but the $30k number should be sufficient for us in an MCOL area. Anything over $50k seems insane to me and means trading your life for excesses. I'd focus on getting to FIRE and doing what you find most valuable. It's easy to supplement your income by $10k in a year if the need arises, but it's impossible to get your time back and life is short.

the problem every time this question comes up is this varies greatly depending on if you rent or own ... and if you own is your mortgage included or is it paid off.  the best way to ask this question is to ask what people plan to spend in retirement including rent/mortgage if you plan to be mortgage free take out a 30 year mortgage at 4% on your house and add that in OR everyone who has a mortgage or rent plans should remove it.  i assume at 30k you have no mortgage or rent ... but many have posted here including that

no mortgage we spend around 50k-55k still with a mortgage we spend around 75k.

RetirementDreaming

  • Stubble
  • **
  • Posts: 109
Re: What's your retirement annual spending?
« Reply #41 on: October 05, 2017, 11:39:01 AM »
$72k spending in FIRE.  We will have a mortgage of $1700 and don't plan to pay it off.  We will move after the kids graduate from high school (~10 years).  We also are thinking of moving out of State (CA) after we launch the kids.  $72k should cover all scenarios and includes some padding. 

Fire2025

  • Stubble
  • **
  • Posts: 234
  • Location: LA LA Land
Re: What's your retirement annual spending?
« Reply #42 on: October 05, 2017, 02:57:36 PM »
32k in LA with mortgage.

FIREySkyline

  • Stubble
  • **
  • Posts: 101
Re: What's your retirement annual spending?
« Reply #43 on: October 05, 2017, 04:54:16 PM »
I'm feeling totally BA. My wife and I are planning to retire on ~$30k. No time to sit at a desk for more of my life! We, like MMM, will probably make money in retirement doing things we want to do, but the $30k number should be sufficient for us in an MCOL area. Anything over $50k seems insane to me and means trading your life for excesses. I'd focus on getting to FIRE and doing what you find most valuable. It's easy to supplement your income by $10k in a year if the need arises, but it's impossible to get your time back and life is short.

the problem every time this question comes up is this varies greatly depending on if you rent or own ... and if you own is your mortgage included or is it paid off.  the best way to ask this question is to ask what people plan to spend in retirement including rent/mortgage if you plan to be mortgage free take out a 30 year mortgage at 4% on your house and add that in OR everyone who has a mortgage or rent plans should remove it.  i assume at 30k you have no mortgage or rent ... but many have posted here including that

no mortgage we spend around 50k-55k still with a mortgage we spend around 75k.

This is with at least $1000/month toward housing. The details of how that looks are TBD. We are selling our current house and do not require an expensive house in the future.

SailorGirl

  • Stubble
  • **
  • Posts: 128
Re: What's your retirement annual spending?
« Reply #44 on: October 06, 2017, 07:43:35 AM »
I expect to come in at around $8000 or maybe a bit lower.  Current spending is less than $700 a month.

Traveling the US in an RV..

elaine amj

  • Magnum Stache
  • ******
  • Posts: 3116
  • Location: Ontario
Re: What's your retirement annual spending?
« Reply #45 on: October 06, 2017, 09:14:14 AM »
I expect to come in at around $8000 or maybe a bit lower.  Current spending is less than $700 a month.

Traveling the US in an RV..

That's pretty awesome!

Caoineag

  • Pencil Stache
  • ****
  • Posts: 534
  • Age: 38
  • Location: Denver
    • My Journal
Re: What's your retirement annual spending?
« Reply #46 on: October 06, 2017, 09:34:28 AM »
Planning between 20-30k for 2. We will be traveling the US in an RV

geekette

  • Handlebar Stache
  • *****
  • Posts: 1883
Re: What's your retirement annual spending?
« Reply #47 on: October 06, 2017, 09:48:43 AM »
We've been FIRE'd for 4 years.  Annual spend has been right around $45-48k, with medical accounting for $15k to $20k per year.  No rent/mortgage, but there's upkeep on the house, of course!

Blissful Biker

  • Stubble
  • **
  • Posts: 241
  • Location: BC
Re: What's your retirement annual spending?
« Reply #48 on: October 06, 2017, 10:18:39 AM »
We are targeting an annual spend of $68K CDN which includes a healthy allowance for travel and outdoor gear.  The house is paid for thankfully so the $68K excludes housing costs.  We could get by on less, and I admire those of you FIREing on lower numbers.  But I am enjoying my part time work and want to make sure we are in a position to see our kids successfully launch. 

honeyfill

  • Stubble
  • **
  • Posts: 231
  • Age: 62
  • Location: Tucson
Re: What's your retirement annual spending?
« Reply #49 on: October 06, 2017, 11:26:57 AM »
This is probably a lot more detail than anyone cares about but I find it helps us to write it out.  Right now we are still on a OMY basis and plan to Retire June 1 after we pay off our new car, the kitchen remodel, and all our daughters student loans.

Our retirement  budget is 120k
We are targeting about 84k base.
24000 for housing includes 20k PITI and 4k maintenance budget
24000 for health insurance and out of pocket 
12000 for all utilities, house cleaners , yard workers, phone, insurance etc
24k for food, clothes, local travel, eating out, wine, entertainment, etc

That leaves about 36 thousand cushion, in good years; nice international travel, maybe the occasional new car or home remodel.  In bad years, we can cut all or most of this 36k. 

We are 60/58 so sometime in the next 10-12 years we will ramp up SS between 36k and 60k depending on start date. This will be strictly for buffer. The plan is to wait til we are 70, barring some brutal market downturn. 
In 5 to 7 years we go to medicare, which should help the health insurance costs a little. 

The first two years are strictly cash and capital gains so taxes should be minimal.  After that , the taxes will  ramp up gradually until we hit 70 and start the RMD's.