# Do You Spend More or Less since you retired?



## hollydolly (Apr 23, 2015)

..or began living on a reduced income after retiring or being made redundant?

It's been said that while you're at work you're not running up utility bills, and you're not shopping as often, or going on holiday as much..but then that's offset by the price of Fuel or fares to get to work if you live a fair distance away from your job as so many of us do/did..then there's the price of work clothing which again for many people means smart dress, shoes etc, hair cut regularly, nails done ( for the ladies) Cost of regular servicing on the car and depending on your job , you may have to have a  nice car and not an old runaround...and so on...but at least whatever you spend is being replenished the next month

You would think of course that if you didn't have that expense you would be better off at home, but particularly if you live in a climate like ours in the UK, Utilities  costs are high, boredom may set in which might result in trips out that you might not necessarily wish to take , holidays become expensive ( unless you have a very good pension)...outside of the UK medical bills may be more regular and higher..White goods / car and house repair costs   have to be found  out of a finite budget 

Sure there's lots of things you can do for free when you are not working outside of the home..but this is about finances specifically...do you find you spend more or less since you retired ?


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## Glinda (Apr 23, 2015)

I'm probably spending slightly less but I've always been frugal so the difference is negligible.  When I retired, I set a budget for myself and I'm happy to say it's been very easy to stay within budget and have lots of fun in the process.  :encouragement:


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## ronaldj (Apr 23, 2015)

we have been doing both.....we are spending less on things we need or want......but we have been fixing up the old house, new roof, new room, new kitchen, new carpet etc.....but the part time job has been doing most of that and I have been doing most of the work.....less gas, less eating out/ only when want to not at work etc.    this year will tell the tale, the remolding is mostly done, although  plan to replace the deck boards before summer, again have the cash ..... been retired/five years...working part time last three.....getting better all the time


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## Son_of_Perdition (Apr 23, 2015)

It's relative, I spend more now trying to clean up the results of the overindulgence of my youth when I spent too much for the idiotic useless adult toys, gadgets, autos, homes, luxury trappings, trips and unnecessary clutter that advertisements on TV or in magazines enticed me to buy using my imagined self importance and unlimited ability to acquire credit, for everything else there's Master Card.


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## Ameriscot (Apr 23, 2015)

We spend more due to very long holidays.


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## Lon (Apr 23, 2015)

Being retired for over 20 years I no longer have Tax Deductible Business Related Expenses so I am spending less plus having sold my home recently and renting a apartment has also reduced my former spending.


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## AZ Jim (Apr 23, 2015)

I am spending a bigger percentage of a reduced income.


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## Cookie (Apr 23, 2015)

Less.  Working can add up -  transportation, clothing, food, even entertainment needed to relieve stress can be costly.


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## Kitties (Apr 23, 2015)

I'm not there yet, but it's a subject that is certainly on my mind. Will what I have be enough to live on. 

I've thought I'll have time to perhaps go places but not the money. If I buy a mobile in an adult park, I'm hoping for a nice pool to utilize. I need the money the cats need for care. I'm a thrift shopper, so that helps. I don't know how all will work out.


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## Butterfly (Apr 23, 2015)

Less, but then I've always been careful with money.  This month, though, has been quite a money drain -- had to have a new water heater, new swamp cooler, and had substantial vet bills.


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## hollydolly (Apr 24, 2015)

Kitties said:


> I'm not there yet, but it's a subject that is certainly on my mind. Will what I have be enough to live on.
> 
> I've thought I'll have time to perhaps go places but not the money. If I buy a mobile in an adult park, I'm hoping for a nice pool to utilize. I need the money the cats need for care. I'm a thrift shopper, so that helps. I don't know how all will work out.




I'm the same as you Kitties, still working but really concerned that when I do retire that it will be enough to live on comfortably...there's only thing worse than being Poor, and that's being Old and Poor .


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## Bullie76 (Apr 24, 2015)

My first 7 years of retirement I spent about the same. Purchased a vacation condo a year ago and certainly spend more now. But I planned for it so not a shock to the retirement plan.


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## Jackie22 (Apr 24, 2015)

I have spent more because I remodeled the inside of my house and spruced up the outside with new screens and shutters and just repaired things all around, also bought a new car, now that that is all done, I'll probably spend less.


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## Ameriscot (Apr 24, 2015)

I had replied more, but now I'm not sure.  I really couldn't calculate.  Our income is less than when we were working, but not substantially.  An unexpected inheritance in 2008 changed things a bit. We do take a lot of holidays but we don't do extravagant very often at all.  We could use a new roof, some new carpet in the hall and guest room, and another car.  But our priorities are to enjoy taking trips like a warm winter destination.  Who knows what could happen to either of us healthwise.  Both healthy now but who knows the future?


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## Lethe200 (Jul 5, 2015)

I like to look at retirement as a series of phases. We're in Phase 1: Active Seniors. Have the time to do things and go places we wanted when we were working, but didn't have time or $$$. Now we have both. So we spend more - a lot more! I love dining out, and it's great not to count the costs of doing so. We travel midweek to avoid crowds and can spend a week in a place where previously we only had a day or two at most. 

Phase 2 is when you start to slow down. Travel gets more and more tiring. You can do it, but it takes longer to readjust and recover. Driving at night and/or busy freeways is something you try to actively avoid now.  You try to stay healthy: sometimes you can, sometimes you can't. Gotta deal with, but again, it slow you down even more.

Phase 3 is when outside expenses - travel, dining out, entertainment - really slow down but medical expenses can take a bigger bite. You may or may need outside assistance, and you better have already planned for it...because 'right now today' things don't look so good for those who haven't. Without money your options become increasingly limited. 

The first question our CFP firm (Certified Financial Planner) asked us when we brought our portfolio over to them, was, "Do you have long-term care insurance?" 

When I said, "Yes, and we've had them since our late 40's," they were impressed. They are expensive, but worth every penny. The best financial protection we ever bought!


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## Red (Jul 5, 2015)

I spend much less.  Car and clothes upkeep was high when I worked.


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## Lara (Jul 5, 2015)

Kitties said:


> I'm not there yet, but it's a subject that is certainly on my mind. Will what I have be enough to live on.
> I've thought I'll have time to perhaps go places but not the money. If I buy a mobile in an adult park, I'm hoping for a nice pool to utilize. I need the money the cats need for care. I'm a thrift shopper, so that helps. I don't know how all will work out.





			
				hollydolly said:
			
		

> I'm the same as you Kitties, still working but really concerned that when I do retire that it will be enough to live on comfortably...there's only thing worse than being Poor, and that's being Old and Poor.


Before I retired I felt the same way. It's unsettling, big time, not to know if you'll have enough. I asked a few financial advisors and each one said the same thing, "well, it depends on the lifestyle you want". That was no help. Finally, it was about a month before retirement and the anxiety built up to the point that google was my last ditch effort to get an answer, ha.  As always, google delivered Have you ever heard of Clark Howard? He's an awesome free online & radio financial advisor who knows his stuff! He made it simple to figure out. I just tried to find it and now it's different because they've updated the standards. The amount is different (less than my calculations 4 months ago)but it's more simple to understand. I would not use this as if it's the answer in stone because lifestyle changes happen and does play a roll but this is at least a ballpark to give you some assurance. Also, there are lots of "Retirement Calculators" online to use for comparison if you're concerned.  Simply this:

The guidelines state that by age 35, you should have one times your annual salary saved up for retirement. Five years later, you should have two times. And on and on, until you reach 67 when you should have eight times your annual salary saved. 
Laid out visually, the guidelines look like this:




By 35, save 1x gross annual salary
By 40, save 2x gross annual salary
By 45, save 3x gross annual salary
By 50, save 4x gross annual salary
By 55, save 5x gross annual salary
By 60, save 6x gross annual salary
By 67, save 8x gross annual salary < < < notice it doesn't say 65

(If you're younger than 67, as am I, then keep saving if you need to….and don't worry about it if you don't. Well, it never hurts to keep saving but you know what I mean.)


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## hollydolly (Jul 5, 2015)

Lara, thanks for that.... I've just added up what I have saved..I have at least 6 years before I can officially retire. I definitely did not have any savings at age 35 when I was a divorced single mum and the twins Peter and Paul Bills robbed me every single week of all my earnings ,  by the time  50 came around  the savings I did have had gone into property abroad...so now at just turned 60, I've only been seriously  saving for the last few years so I'm playing hard catch up now!!


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## Lara (Jul 5, 2015)

My pleasure, holly. I admire your fortitude. You'll be fine.


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## Josiah (Jul 5, 2015)

With my wife in a Nursing Home and all of her expenses covered either by insurance or Medicare, I only need to cover my own expenses and since I inherited two copies of the cheapskate gene from my parents....well you can see where this is going. I need to hire a personal trainer to teach me how to indulge.


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## hollydolly (Jul 5, 2015)

Thanks Lara  tbh, things are not as bad as I paint them, my o/h has a good pension available when he retires, but I'm trying to err on the side of caution a little bit having been divorced once, if it ever were to happen again, I'd like to think I'd not be in financial difficulties. 

Josiah..look no further than me I can be your personal trainer on how to spend.. :sunglass:


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## Lara (Jul 5, 2015)

Yes Josiah! Read my signature below from Ralph Waldo Emerson!

Holly, I just almost forgot that you're in London. I'm in the U.S. The retirement savings formula I gave you might be different in your country. So, keep researching for the correct formula that fits your countries currency and financial status. I wouldn't want to steer you wrong.


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## hollydolly (Jul 5, 2015)

Oh that's ok Lara, it won't be too too far different I'm sure  even though London is a very expensive part of the world,  we don't have the medical bills you folks have... but yes indeed I will research more..thanks for the advice it's all useful.


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## Josiah (Jul 5, 2015)

This is somewhat off topic, but this discussion prompts me to describe circumstances that have affected my attitude about spending money. The reason that my wife and I are well off is entirely due to my wife's remarkable talents. She started a business (rare books) and in the thirty seven years of our marriage succeeded in becoming one of the country's most successful dealers. We worked in this venture together but it was her daring business acumen and expertise in a very esoteric field that is the reason we were so successful. She had so much talent that even in the final two years of the business when it was apparent to me and most of her colleagues that her cognitive skills were seriously impaired, the business still made record profits. How tragic then that after succeeding so remarkably she had to fall victim to a disease that has decimated her brain. Perhaps you can imagine my discomfort in being the sole beneficiary of this wealth.


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## hollydolly (Jul 5, 2015)

Josiah I can fully understand your reasoning, and empathise with your situation regarding how you came to be wealthy given that you credit your wonderful wife with being the main provider of your wealth now in your retirement. Most of us know how ill your wife is, and how wonderfully you still care and look after her on a daily basis even though she is hardly aware  of her family , but I'm sure you must realise that you worked alongside her to earn and make a life for both of you in sickness and in health. Tragically one is very sick now, but her hard earned money is keeping her in the best comfort she can be at this late stage in her life , and I'm sure if she knew, she would be very sad  to think that you felt you couldn't enjoy the benefits too in the autumn of your life.


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## jujube (Jul 5, 2015)

Yes and no.  I spend more on travel and less on clothing, etc.  I no longer care if my purse matches my shoes.  I'm not even sure if I care if I _have _a purse or shoes any longer.....


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## Lara (Jul 5, 2015)

I'm deeply touched by your story, Josiah, but what a wonderful tribute you have posted to her when you said, "...The reason that my wife and I are well off is entirely due to my wife's remarkable talents. She started a business (rare books) and in the thirty seven years of our marriage succeeded in becoming one of the country's most successful dealers. We worked in this venture together but it was her daring business acumen and expertise in a very esoteric field that is the reason we were so successful. She had so much talent.." Nicely penned, Josiah.y 

Regarding Holly's reply to you, she said exactly how I feel too. And Holly said it so well.


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## Lara (Jul 5, 2015)

jujube said:
			
		

> Yes and no. I spend more on travel and less on clothing, etc. I no longer care if my purse matches my shoes. I'm not even sure if I care if I _have a purse or shoes any longer….._



Jujube, I hear ya'. We're in the season of our lives when we don't have to 
give a fig about what anyone thinks about what we wear, like this familiar quote:

"When I am an old woman I shall wear purple, 
With a red hat which doesn't go and doesn't suit me, 
And I shall spend my pension on brandy and summer gloves, 
And satin sandals, and say we have no money for butter"

.


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## LogicsHere (Jul 9, 2015)

Haven't really be retired long enough to determine amount of expense.  I know I'm buying a few more lunches out, but most of the time I'm at my mom's looking after her.  Since she suffers from syncope and can pass out at any time from standing or exerting herself, I'm pretty much stuck living a 95 year-old's life right along with her and am very depressed.


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## LogicsHere (Jul 9, 2015)

The one thing they don't tell you Lara, is how you can manage to do that and still have some kind of life even a basic one.


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## Capt Lightning (Jul 17, 2015)

We have probably spent a bit more  since we took early retirement 9 years ago.  State pension and some more occupational pensions come online in Sept.,  so we will definitely be spending a bit more.


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## Ameriscot (Jul 17, 2015)

I naively didn't even think about retirement until I was well into my 40's.  I worked for a state university (senior clerical) and realized I needed to think about my pensions.  Doh.  My plans were to try to get a job at one of the best paid state universities - two of which were NC and Cali - and work until 67.  I was at a low paid university, but the cost of living was also low. I was in the process of doing that when I met my dh and moved to Scotland. 

Fortunately, dh had always planned for retirement and has a very good work pension he earned in London, but we spend it in Scotland which has a lower cost of living.  Between us we have 6 pensions (we only expected 5).  Medical costs are never an issue here with the NHS.  But our priorities are traveling, and now the bikes we just got this year, while we are both healthy and fit.  There is no guarantee we'll both be fit and healthy next year or next month even, so we're grabbing everything right now!  Go, go, go!

In the UK the news media keeps telling us that 1 out of 3 of us will get some type of cancer.  I try not to worry about that but there was a LOT of cancer in my family - of every type.


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## 3horsefarm (Jul 18, 2015)

My retirement was kind of a forced, overnight thing just before I turned 65. At the time I still kept 24 horses, two of them stallions. In just a few months I was down to the 3 I have now, which is all I can afford to keep. So yeah, I spend MUCH less now. About $1800 a month less.


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