# Costs in Retirement



## Ramblin Wreck (Jun 10, 2005)

As a part of my retirement planning I developed a simple budget comparison of what I thought my finances would look like in retirement verses what they were while working. For example, I predicted/projected that my automobile expenses, retirement contributions (both the pension plan and FICA payments), clothing outlays, and meal/entertainment expenses would go down. And they have. A pleasant surprise was that I was able to reduce my county taxes by placing my property in a "farm covenant". It ties the land up for ten years, but God willing, I'm not going anywhere so no biggie. My utilities have remained stable, which is good, since I thought they might go up a little. I underestimated the costs associated with farm projects that I now have time to do. Also, I've bought some adjoining land, which wasn't planned at the time I retired.

How has your budget changed in retirement verses when you were working?


----------



## where I want to (Oct 28, 2008)

Well- yes.............
I did some figuring and found that my income in retirement would cover my living expenses with a bit to spare. And that worked fine for two-three years.
Then I had one month in which I had to repair the water system that a neighbor destroyed, my almost new fridge died and I had a horrendous vet bill for my dog. Ok- that's why I have a saving account.
Then the next year, I needed surgery outside of the area to the tune of $10,000 extra expenses. It took me quite awhile to get everything lined up again.
So now I have decided that "unexpected" expenses need a savings plan too and have been living closer than I was before these things happened so I can build up an emergency account to tap without eating into my planned use of my savings.
Oh- and the banks stopped paying any real interest too. That meant a recalculation too as the higher interest CDs expire.
Oh well- lucky I had some wiggle room to start and was able to make adjustments when I realized I had not quite thought though as well as I could. I forgot "unexpected."


----------



## Old Swampgirl (Sep 28, 2008)

Yes.....and the changes in costs have always gone higher. Especially fuel costs, both for my home, propane gas, as well as for my diesel tractor & small truck(reg. gas). Oh, & I forgot to mention the rise in the food cost, both for me & my chickens. I have had to go into my savings to make ends meet every month. The one amount that has gone down is the interest earnings on savings--almost down to nothing.


----------



## Ramblin Wreck (Jun 10, 2005)

The significant drop in interest earned on savings is hitting a lot of folks hard around here (and everywhere I suspect). I'm suggesting to some of my friends to look at rental property in lieu of interest bearing savings. Houses are available for prices not seen in 40-50 years, but rent has not gone down. It's to the point here that you can pay someone (usually 10% of income) to manage the properties for you and still earn a good return. If you can manage them yourself, you make even more. I was never "mean" enough to make any money renting, but some folks have the knack/tenacity for it.


----------



## Micheal (Jan 28, 2009)

The way I looked at retirement etc - before I did retire - was that I planned to be debt free and have enough money available (between SS, pensions, etc) to equal the gross amount I was making while working.
Two almost three years before I retired I went and replaced many of the major (old) things that may have needed replacing anyway such as the furnace, water heater, garage and entrance doors, all the windows, even bought a newer car, etc. 

With all that said, I like others have been feeling the rising costs of "just living" in these so called non-inflationary times that we all find ourselves in. Guess there are just some things no-one can foresee..............


----------



## stillhere (May 28, 2007)

Our plan is the same; fix stuff and be debt free. We are on the fast track plan now and trying to get DH healthy. Oh the vet bills !! I promised DH I would not get another pet for a while.


----------

