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I don't really know. Mortgage with taxes and insurance is $1337 a month, but I always paid more. No car payment, driving the same 2010 car. This might be the year I replace it. It's too small and uncomfortable.
Got whacked this past year with having to go on Medicare and pay those premiums. Never had to pay for health insurance before except my last four years of work when they told us we had to contribute. But then for seven and a half years after retirement from that job, it was paid for until I hit 65 and had to get Medicare. Still don't pay for the employer-provided secondary, but it's not as good. I got bills this year for the first time for an ultrasound and a biopsy. They were small, but still. I was spoiled.
The good news is that my former employer reimburses us once a year for the Medicare premiums, so I will get that back.
But last year I needed dental work (80% is reimbursed through insurance) and will need more this year.
I had to get both a new water heater and furnace in Q4 of last year. That was fun. Besides that, I finally got the same plumber who replaced the water heater to move the water heater over so that I could access my unit shutoff valve, which the brainiacs that build the complex put BEHIND the water heater where it could not be reached. If something ever happened in my unit, I had no way to shut off the water. Turned out the valve handle was broken off and the valve itself stuck, so rather than try to force it, the plumber drilled a new hole in the pipe just above the old valve and put in a new one with a handle and moved the WH over so I can reach it easily.
But the bigger expense last year was just under $10K to update the kitchen. New cabinets, counters, backsplash, new sink. Kept my floor because I like it. One of these days I'm going to sell that condo, and it needed updating. Still a few things to do like closet doors and carpet replacement in the bedrooms, but the major things are done.
Now, as I've mentioned elsewhere on here, I've taken a second home (apartment) to check out the city where my daughter lives, so I'm paying a rent plus a mortgage, but rents are still reasonable here. I've been asked to work on a major project for a while, though, so I'll have the money to pay for it. If worst comes to worst, I can always take SS, but I'd rather wait to FRA or later to do that. But generally speaking, I'm in better shape financially than I ever was in my working years. No debt except the mortgage.
I have no idea what I spend on food. I guess I could track that, but it seems like an unnecessary chore. I'm frugal with buying the food that I keep at home and cook, but I also eat out or order food fairly regularly.
You may know this but if you still have major dental work to be done, you may want to schedule it for the end of Dec & Beginning of Jan when insurance rolls over to the new year and you have that new amount of $. I had to go toothless for 3 days until Jan 2nd. Can't imagine what I would've done had i not been told that by the receptionist, just wait a few months and we'll schedule all your dental work together within a couple of weeks.
I spend around $50K for a typical year in retirement. House and cars are paid off.
Food is the biggest single expense at around $10K a year.
Medicare and supplemental insurance costs and prescriptions are around $4K a year.
Property tax is around $4K a year.
Around $4K a year for travel, vacation and entertainment.
Dental care is around $1K a year.
Auto maintenance is at most $1K.
All the rest are normal recurring bills for electric, water, Internet, cable, phone, garbage and so forth.
Upcoming expenses will be a new water heater this year, estimating $2.5 K.
New roof ($15K) in about 10 years.
Myself:
About $20k property taxes and maintenance of 3 condos (soon to drop to about half this figure because one condo is getting sold).
A little over $6k health insurance, but I get a tax credit (refund) for more than half of it on account of ACA.
About $5k food & minor things like vitamins, socks, small household etc items. About $4k various taxes other than property taxes.
About $8k various travel.
No car.
The largest unexpected/emergent expense in retirement so far wasn't very large: a $1.8k special assessment from the condo association for some problem recently discovered in our 130 year old condo building that the city demands we fix.
Does the bold include federal and state income tax obligations?
I really don’t know, most of my expenses are regular year-to-year type expenses that can’t be reduced and I don’t keep track of regular bills or groceries. I have no loans or mortgages.
Expenses in 2023 that stood out -
Rental apartment expenses 30K
Gifted 15K
Paid for my daughters college expenses (she went back to college and is finishing her degree. She'll be done in May), also her gas, car insurance, health insurance monthly premium and dental work - about 30K+.
Biggest expense since retirement that stood out - retrofitting apartment building ($80K) and new apt roof and paint exterior all in one year.
2024 will include more gifting, new roof, fencing and landscaping.
Note that I did not include Federal/State Income taxes in the non-discretionary expenses because significant portions were due to Roth convesion and investment incomes. Our income taxes have ben around $50k-$60k a year and I expect it to go up significantly when I have to take my RMD!
New 2400 sq. ft roof and windows for the shop (2023): $30k.
New 2500 sq. ft roof for the house (currently): $25k
Dental work (Implants/crown for my 2 cracked teeth and one of husband's teeth, replaced 3 crowns): $25k (spread over 3 years 22-24 to get max insurance reimbursement of $1.5k/person/year)
$12k for a rowing dock in 2021
$12k for a wood stove in 2021.
$6k Hawaii vacation in 2022
$16k vacations (Netherlands, Italy, Croatia, Greece) in 2023.
Summary:
'Typical' annual expenses: $54k
Average annual income taxes: $60k
Average annual unexpected/'unbudgeted' expenses $32k
Total 'average' annual expenses in retirement $146k
Starting from this year, I expet to pay around $65k in income taxes (no Roth conversion!) and spend around $10k/year for vacations. We are not planning to do any big home improvements/repairs projects in at least 5 more years. We also hope there will be no more unexpected dental expenses.
So our projected annual expenses should be around $130k. Note that half of it is in income taxes. Oh well, it is a nice problem to have in retirement.
P.S. I reread previous responses and did not see anyone mentioned inome taxes. Maybe they should be parts of non-discretionary expenses.
Status:
"Smartened up and walked away!"
(set 22 days ago)
11,769 posts, read 5,785,673 times
Reputation: 14188
Many of you spend more than what I've saved. Always said many on this forum are out of touch with the little guy. Not taking your hard work and amt saved away from you but I now understand why some are looked down on.
Many of you spend more than what I've saved. Always said many on this forum are out of touch with the little guy. Not taking your hard work and amt saved away from you but I now understand why some are looked down on.
I'm a "little guy". Spend about $40K a year. House/car paid off..no debt at all.
I lead a boring life....and love it
I buy my food with a credit card, and in the months when I don't buy any plane tickets or anything travel related (which is maybe 4 months in a year), my entire credit card bill is approximately 100% for food. Since I know what my bill is in such months, that is how I know how much I spend on food.
I could figure it out, I'm sure. I just don't care enough at the moment.
I also buy my food with my credit card. It's one of those that you can set with your highest cashback at 3% and choose from categories like groceries, restaurants, gas, etc. I have that card set for groceries, and I always use it to get the cash back. When the cashback amount hits $100, it automatically credits the balance.
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