34% of Retirees Say Expenses Higher Than Expected

More than one third of retirees said they found their expenses in retirement to be higher than they had expected before retirement, according to a recent survey taken in March 2020.

The survey, conducted by the Employee Benefits Research Institute, asked retirees were how their expected lifestyle and expenses compared with what they actually are.

When asked how their overall lifestyle in retirement was now compared with how they expected it to be before they retired, 28 percent of retirees said it was much better or somewhat better than expected.

Source: 34% of Retirees Say Expenses Higher Than Expected

4 comments

  1. I guess I am very lucky. I never made more than $25,000 during my working years, so I know how to find bargains. In retirement if it is not necessary do not buy it. No credit card debt has been a big boost to my disposable income. I cut cable TV and now for $11.99 Hulu per month and a $25 TV antenna I have plenty of stuff to watch. Savings $600 per year to put towards vacation costs. Only eating out for birthdays and anniversaries. Besides, my wife and I can cook better meals at home anyway. I now have a $10,000 emergency fund, a first for me. I do live in Montana which has no sales tax, cheap hydroelectric and cheap natural gas, a big help. My utility bills average $75 per month. I even picked up a reel type push mower almost new at a local pawn shop for $35 to cut my small lawn, Great exercise. I never pay full price for anything always looking for quality used items at yard sales; or wait until it goes on sale. I have been able to save 30 to 50 percent on auto parts by using amazon, ebay or rockauto.com..I am living way better in retirement than I did while working. Even with a new 2020 Ford Edge lease, I am still able to save $800 per month on income of just $3,092 per month. Life is great!

    Liked by 1 person

  2. Not surprised. When I started working I was told that I would only need 60-80% of my gross income to retire. I found that it is closer to 100 to 110% of my working net income if you want to do all the things that you now have the time to do. The type of expenses change too. Paying mortgages and high tax rates and transportation costs becomes paying for trips and more in medical costs as you age. Some people get too generous with helping their kids and grandkids too and leave themselves short.

    60% of my gross income is less than 100% of my net income when I was working. We did lower our income tax rate being retired and paid everything off so that was a big help. We also stop contributing to our 401k and Roth IRAs. But we are still living and doing things l like when I was working and we are using other sources to supplement my pension to get back up to a 100% of my net working pay.

    Like

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