Retirees whatcha living on?..........

[Lawnboy]

Trying to get an average monthly amount of what everyone is living on in Retirement. I realize this is going to be all over the board based on circumstances and lifestyle choices. Talking with financial advisors is often discouraging as they more often than not say "ohh you'll need 3+ million in retirement to live on". I know too many who are retired that aren't anywhere near that so was just curious if you're willing to share what are you living on monthly in retirement. 2k,3k 8k,10k? I'm hoping you'll have in there your basic necessities along with vacation,hunting repairs ect. not just bare bones......Thanks for sharing

 

[cgasner1]

Seems like it would be a tough question without knowing someone’s housing/car situation

 

[belshawelk]

all depends on what you want to do. Stay home, very little. Want to travel etc. much more.

I think 2-4MM is a good number. At that rate many can live on basically the interest and then have fun money.

 

[hank4elk]

Advisor says $3mil so he can get his $1.2...
Free and clear off $3500, 2 trucks. 140 acres,2 wells.

 

[Lawnboy]

I realize some are going to have car payments, house payments, or other debt and some won't have any. Just wondering what it is taking number wise for them regardless of situation. This isn't going to be scientific by any means.

 

[David58]

Numbers rattle around all over. Getting ready to step in, looks like about $5500 fixed (SS+small pension), investments sprinkle in some more. Goal is to live small, we don't travel but to see kids or friends, prefer to eat what we catch/shoot/grow.

David
NM-->ID

 

[npaden]

It’s not hard to just do the math. Take your current expenses and adjust them. Take out whatever you are saving, adjust your income taxes based on reduced income, add or subtract health insurance going up or down.

My projected retirement spending is going to be less than half of my current income.

 

[Lawnboy]

It’s not hard to just do the math. Take your current expenses and adjust them. Take out whatever you are saving, adjust your income taxes based on reduced income, add or subtract health insurance going up or down.

My projected retirement spending is going to be less than half of my current income.

This is why I'm asking. You've come up with a figure of half your current income. I'm curious what others are seeing. Thanks for your response.

 

[npaden]

This is why I'm asking. You've come up with a figure of half your current income. I'm curious what others are seeing. Thanks for your response.

Yes. I think a % of current income might be more useful than a specific dollar amount. Some of the calculators use 85% of current income and I think that is too high.

 

[WyoCoalMiner]

My parents have been retired for about 15 years. 5 years ago I asked what their annual income was and they said around $75,000. They do not have a mortgage. Only 1 car payment. Live in a home that is far larger than they need but don’t want to move. Go on one big trip a year(Germany, Greece, stuff like that). Father has some health issues but nothing life threatening so I think their healthcare expenses are pretty normal. Hope this helps.

 

[TN2shot07]

I think you need to narrow down a percentage of your current income you’ll be comfortable living on and work the math backwards. Take what you bring home, subtract what you’re expecting from ss then go from there. With a 4% withdrawal rate (common number, debated if it still applies) you’d need roughly 20x your income at retirement to replace 80% of your income, 25x to fully replace it but most people aren’t getting close to that. Actually the majority of people I come into contact with have little to no additional savings (or they burned through it the first few years) and their only income is a small pension they couldn’t get at and ss. That’s been enough to keep our retirement savings goals a top priority.

 

[Dave N]

4K/month with no taxes, $500 truck payment, 2 utilities accounts, no mortgage, minimal credit card debt. Pretty conservative on groceries and other spending and haven't done much traveling so far. Bank account is actually growing. I feel pretty comfortable where I'm at and I'm able to fix or buy most things if I need to without panicking.

 

[Lawnboy]

Yes. I think a % of current income might be more useful than a specific dollar amount. Some of the calculators use 85% of current income and I think that is too high.

ohh I like this idea wish I would of thought of that. Now I'm curious of those who have or will share what is that percentage compared to pre retirement. A percentage number would be super handy as a guage

 

[Straight Arrow]

There are some helpful financial projection tools which will generate year by year income figures from savings, investments, SSI, retirement income sources (pensions) and such from your input of figures in each. Based on projected life longevity you expect and on your estimated budget, the program will tell you if income matches budget, as well as where income will come from (SSI, pension, etc.) each year.

Shortly after I retired, my wife soon asked, "What about me?" I used the powerful financial planning tool then available through USAA to generate such a retirement financial plan information, together with a budget for our retirement years, and presented it to her for her Christmas gift. We both then were retired and implementing our new budget, which by the way, was more than we really needed as we are very spendthrift!

 

[mtmiller]

I plan to be making more in retirement. It won't be a problem. Current home owner and no debt. That being said, I am eyeballing an f-250, but hope to get another 50k out of the 200k Tundra. I have a good savings already for that purchase.

 

[MarvB]

Yes. I think a % of current income might be more useful than a specific dollar amount. Some of the calculators use 85% of current income and I think that is too high.

I think npaden is pretty spot on here. If I had been sold on the 80-85% mantra I'd probably still be working. I finally said screw it after nearly 30 years with the gubmint and was around the 65-70% mark. Beginning year #5 without the shackles and we have yet to touch a dime of our savings and we play (travel, hunt, etc.) far more than we did when I was working. Hoping that the SSA will pony up some of the money I contributed back in my early years as well, but not holding my breath.

I think the real consideration for us was to have enough $$/health coverage to blanket anything catastrophic that might arise but again you roll your own dice there. Good luck in however/whenever!!

 

[BuzzH]

I just went through this exercise a couple months ago and its so dependent on a lot of things. Debt, lifestyle, etc. etc.

For my wife and I, between the following we will more than replace our income now:

1. My federal pension
2. Rental income
3. SSX2
4. TSP 4% withdrawn yearly
5. 2 IRA's 4% "
6. 401k 4% "

It sounds odd to say we have saved too much, but we have. I think the only problem we're looking at is how to invest more of the money we'll get in retirement.

Only reason I'm still working is to get the .gov health insurance for both of us for life. They continue to pay their share of my health coverage into retirement.

I have a close friend that pulled the plug right after covid, he's doing very well on 2.5-3 million.

 

[WyoCoalMiner]

USAA had a great planning tool. Not sure it still exists. Once you got through their gauntlet of insurance pitches it was useful. Lately I have been using FIcalc for planning purposes. Once you land on a monthly income number plug your data into FIcalcs simulator and have fun seeing what may be possible.

 

[Addicting]

4K/month with no taxes, $500 truck payment, 2 utilities accounts, no mortgage, minimal credit card debt. Pretty conservative on groceries and other spending and haven't done much traveling so far. Bank account is actually growing. I feel pretty comfortable where I'm at and I'm able to fix or buy most things if I need to without panicking.

That is our plan and budget amount once we officially call it. When we hit 60 that amount may go up with the wife’s 401k. Biggest part is getting debt free before calling it.

 

[Lawnboy]

Love all this thanks for sharing your numbers and thoughts. Keep it coming