Quinn asks. What is your experience or expectation for a change in spending upon retirement?
Read any article on retirement planning and there will be something about the expenses that go away upon retirement.
Usually the top two are no more mortgage payment or saving for retirement followed by commuting and other work related costs, less driving hence less gasoline, less spent on clothes. Some articles mention no longer paying life insurance premiums, less dining out and fewer subscriptions.
Some of these may be significant and others not so much. Certainly if a mortgage is paid off at retirement that is a big reduction and no doubt most will see a drop in their savings rate especially if saving was a significant percentage of income.
On the negative side we are told we may see health care spending increases, more travel spending, higher utility bills because you are home more, home maintenance because you can’t do as much yourself and support for children and grandchildren.
My personal experience was no significant overall change in spending upon retirement because our mortgage was finished years before, our health insurance premiums increased significantly, I had no commuting costs, we wore casual clothes at work the last few years. Our travel costs increased. My payroll saving rate in the 401k was modest and is nearly the same now as a percentage of income while spending on family increased significantly. We eat out more.
So, overall what has been your experience or what does your spreadsheet predict will happen? 😉
Noticeable decrease in spending/expenses, about the same or increased spending - including discretionary spending?
Usually the top two are no more mortgage payment or saving for retirement followed by commuting and other work related costs, less driving hence less gasoline, less spent on clothes. Some articles mention no longer paying life insurance premiums, less dining out and fewer subscriptions.
Some of these may be significant and others not so much. Certainly if a mortgage is paid off at retirement that is a big reduction and no doubt most will see a drop in their savings rate especially if saving was a significant percentage of income.
On the negative side we are told we may see health care spending increases, more travel spending, higher utility bills because you are home more, home maintenance because you can’t do as much yourself and support for children and grandchildren.
My personal experience was no significant overall change in spending upon retirement because our mortgage was finished years before, our health insurance premiums increased significantly, I had no commuting costs, we wore casual clothes at work the last few years. Our travel costs increased. My payroll saving rate in the 401k was modest and is nearly the same now as a percentage of income while spending on family increased significantly. We eat out more.
So, overall what has been your experience or what does your spreadsheet predict will happen? 😉
Noticeable decrease in spending/expenses, about the same or increased spending - including discretionary spending?
The post Quinn asks. What is your experience or expectation for a change in spending upon retirement? appeared first on HumbleDollar.
No comments have been added yet.
