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1) Thank you Perryinva for this quote which prompted me to start this thread. I hope the discussion is informative and helpful. So, thanks.
Quote:
Many people save and plan to have far greater net DISPOSABLE pay in retirement than while working,
So all, do you have more or less discretionary income in retirement?
Some people say they make (have) more disposable money in retirement than they did while working.
In all my figuring I'm NOT necessarily expecting that…I don't think. I'm also not retired yet so I also, just don't know yet.
Let's say "bills" or necessities are: food, clothing, utilities, and other housing costs, if any, health costs, premiums and prescriptions, if any, and any other allied needs.
So my question is really about discretionary money that you get to spend how YOU want: travel, gifts, eating out, whatever..…even whims, if you want.
So do you have more of THAT kind of money to spend retired -- than when you were working?
One thing I DO know for sure my GROSS income will definitely be waaaaay less. The issue for me is will my "needs" spending go down enough so I actually have more DISPOSABLE AND DISCRETIONARY money?
My retirement budget is including for travel a bit less than what I'm paying now on my mortgage - it'll be paid off before I retire. So that's quite a big chunk that also will include some eating out of course while traveling.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Considering the amount that comes directly out of my pay (direct deposit) for the Health Savings Account, 401K, Pension Plan, and car payments my pension plus SS in 4 years will actually be well over what I take home now. Of course the cars will be paid off before then (2-3 years left on them). Since we plan to sell and use the equity to pay cash in a lower cost area, our expenses will also go down, plus no more commute and more time to do things myself rather than paying others. My wife will also get a pension and SS, which will be less than mine but still more than she takes home now. The great unknown is the cost ofsupplemental medicare premiums then. Hopefully only take only the minimum 401K disbursement and use it for more fun things.
I do plan to try to live off my pension…which WILL be tight. In order to delay Soc Sec. So those years my disposable income will definitely be less. once I get Soc. Sec. then the purse strings can loosen up.
I think more or less the same. No new savings to IRA and 401k. But we pay significantly less tax and I'm only planning on one SS. So when I'm 70, there will be significantly more, plus RMD from my husband's IRA. All bonuses. I don't count on them until I get them.
Assuming you have no expenses related to your children or other family members I would expect your spending to be the same (not considering work related expenses) or increasing if you do a lot of traveling or eating out.
I will have more discretionary income in retirement when not contributing to SS, Medicare, 401K, IRA, etc. But I will also have more time to spend my money. For example, finding time to take vacations has been an issue while working and I end up working long hours both before and after to make up for the time that I am out of the office. This also makes my vacations less enjoyable knowing that I will pay when I return to work.
we are spending more in retirement than working . why not , we were committed time wise before . now we are on the go daily
Um You are no longer saving for retirement but living in retirement and your fat portfolio is growing. Oh yeah and you still have income streams to kick in. Takes awhile for it all to sink in but when it does
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