9 Ways Spending Changes in Retirement

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