9 Ways Spending Changes in Retirement

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Another option is to sell the house and become a full-time RVer. It can be much less expensive than owning a house, especially if your house is paid for. There are many ways to save on camping and fuel expense yet still lead active, rich lives. When it is time to get off the road, there are options there too- RV resorts where you can park your RV or purchase an inexpensive park model. You can also earn money or get reductions in expenses by working or volunteering on the road.
Jaimie Hall Bruzenak
author of Support Your RV Lifestyle! An Insider's Guide to Working on the Road
http://www.rvilifestyleexperts.com

Jaimie Bruzenak of SD 1:44PM December 21, 2009

I have been early retired for nearly 10 years am not quite Medicare eligible and find that our expenses are quite less than I thought they would be. Cutting out commuting costs (especially less car maintenance, gasoline and other car replacement expenses, work clothes, work lunches, FICA taxes, savings, house payments, kid's college expenses, etc. that we live quite comfortably on quite a lot less. We've taken some big trips including a couple overseas and many here in the US. Travel is our one big increase but the other decreases far outweigh the travel expense increase. We never take tours. We travel Europe like the Europeans do and not like Americans! Seeing the world like the residents live it is so much more interesting anyway. And if you can travel at the last minute there are some real bargains out there! Luckily some of our other hobby and entertainment interests are relatively inexpensive...although golfing expense can be a bit high at times. But if one golfs once or maybe at times twice a week in the warmer months it can be a reasonable expense at the right golf courses and taking advantage of senior rates. Dining out is about the same but we never did eat out excessively and we very much enjoy eating VERY nice meals at home; often with friends and trying new recipes, etc. Eat-in meals cost us more than before but eliminating work lunches largely offset that.
Health care insurance has risen VERY fast and is much more than we planned. We knew it would increase but it has been faster than we ever imagined. All in all if your home is paid off most people would be surprised how much less you spend in retirement if you are not frivolous and know how to travel.

Retired Too of PA 6:33PM December 12, 2009

No one knows what the future holds. I retired 23 years ago. I'm 83 now. If you plan to travel after or prior to retirement, do it as soon as possible. The reason is that there is much to see in this world, assuming you are interested.
You will be surprised at how little it can cost. Do it before you get too old. Then it can be too late. Also, don't use the Tours or the Cruises. It's more fun and cheaper to just go on your own.
If you go to Europe, try not to change locations on weekends. When you reach your planned destination, you will probably depend on the local Travel Bureau for information relative to Hotels etc. They are closed on weekends.

Frank of CA 6:18PM December 08, 2009

I find your email very informative. Please give more information on the subject of retirement

Earnest DeBerry of GA 4:44PM December 02, 2009

Missing in the article is income taxes on social security, for one. When my wife and I are both retired in a few years, our other income from our retirement savings will end up with taxing our social security at the 85% rate. We already save 40% of our gross income now, spend less than .25% on dining out, do most of our home maintenance and repair, spend about $10 on dry cleaning per year, spend less than $200 a year on "entertainment", and will have lower transportation costs. If one is already doesn't have a big lifestyle before retirement, retirement is no great change to standard of living. We will be traveling a lot more simply because we can afford it.

tom of MN 7:25AM December 02, 2009

Do forget some additional saving form tax gross-ups ...
E.g. if you were at the SS max in 2009, you were putting in about $9,500/yr. But you got no tax break for this, meaning you needed to earn about 50% MORE Gross income (assuming a marginal 33% Fed. + State tax rate) to NET the $9,500.
Hence, in retirement, from this item alone, you need $9,500x150%= $14,250 less GROSS income.

Bull of NY 9:30PM December 01, 2009

Do forget some additional saving form tax gross-ups ...
E.g. if you were at the SS max in 2009, you were putting in about $9,500/yr. But you got no tax break for this, meaning you needed to earn about 50% MORE Gross income (assuming a marginal 33% Fed. + State tax rate) to NET the $9,500.
Hence, in retirement, from this item alone, you need $9,500x150%= $14,250 less GROSS income.

Bull of NY 9:29PM December 01, 2009