Author Topic: Retirement costs that seem too high  (Read 2205 times)

tukk323

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Retirement costs that seem too high
« on: November 09, 2015, 12:30:52 PM »
http://www.stuff.co.nz/business/money/73758616/retirees-need-more-than-the-pension-gives-them-research-shows

While I respect the message of trying to encourage people to save the average costs here seem to be off a bit. I'm a NZ worker in my 30s and I only spend $450 a week, including rent and petrol, two things which presumably a retired person shouldn't need to spend on and yet they say that average one household person is $489! I can't imagine spending that much if I was retired

gooki

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Re: Retirement costs that seem too high
« Reply #1 on: November 09, 2015, 04:05:05 PM »
I'm pretty sure retired people still drive cars. And if they don't taxis would consume an equivalent amount. Owning your own home isn't free of expenses either. Rates (property taxes), insurance and maintenance on even a modest property can be $5k a year. Let alone the cost of care as ones physical abilities diminish.

With that said, yeah it seems high. My budgeted expenses for retirement is about the same $500 a week, but that's for the two of us. I guess there's a lot to be gained through economies of scale by having just one extra person living with you.
« Last Edit: November 09, 2015, 04:07:58 PM by gooki »

TheAnonOne

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Re: Retirement costs that seem too high
« Reply #2 on: November 10, 2015, 10:58:53 AM »
$500/w is only 2k a month or $24k a year. Seems pretty MMM to me...

ERE is more of the 12k/y guys.


We probably spend 3-4 a month (this year has been 4-5 avg due to wedding and housing remodel) I find that I am on the higher side here.

Jack

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Re: Retirement costs that seem too high
« Reply #3 on: November 10, 2015, 02:55:05 PM »
$500/w is only 2k a month or $24k a year. Seems pretty MMM to me...

ERE is more of the 12k/y guys.

Jacob from ERE counted only his half of the household expenses as his FIRE amount, so they're really a lot closer than the headline numbers would have you believe.