I spend about $26,000/year in retirement. The most I spent at 1 time was buying a new car for $36K cash. I withdrew $35K from retirement account and bought the vehicle. But it was an outlier large expense. I reduced my expenses to 13 items. 1. Food 2 electric. 3 natural gas 4 trash/recycle 5 water/sewer. 6 internet. 7 cell phone. 8 property tax 9 home insurance 10 auto insurance 11. gasoline 12 home/auto repair budget 13. entertainment budget. I can cover all of this for $2200/month. No pets, no cable, no subscriptions, no paid memberships. Having a paid off home and zero debt is a big advantage in retirement. Also brings low stress. I encourage you to add up all of these 13 expenses i mentioned and see what you need to live. Also, imagine this monthly expense with ZERO debt. It is more easily doable than most people think.
@@Markrtsoon My entertainment budget #13 I use for travel. I do local entertainment like Class A minor league baseball games for $16 ticket and Friday fireworks. Also I go to a public arbor park/forest where it costs $5 to walk the park which is full of donated plant, flower, and tree species. Medical expenses are zero because my health has been great since I retired. Virtually zero stress, I eat and cook more healthy, proper sleep, and I live life on my own time schedule.
Everyone has a different retirement age in mind which can cause a large range numbers from individuals. If I retire at 55 compared to 70 I’d need much more to feel good about retiring at 55.
I agree. I spend the same or more percentage wise on my working pay versus retired pay. All depends if there is a pension involved or not to how much is needed.
I think there are more people retired on a pension than is being reported. And the value of nearly all those pensions is a million in that you would need at least a million saved for yourself to equal the money pensioners get every month. Possibly more considering those pension checks are totally isolated from market volatility .
Is it $1.46m per person or per couple? I guess it must be per person. Also, I assume they don’t intend to leave any significant inheritance to loved ones. And this $1.46m is additional to social security. Say $2.5k a month. Yes I guess that can give a decent total of about $7.5k a month to spend. Assuming 4% returns. And 2% annual increase. Yes. Reasonable view of what’s needed.
Well, some of the expenses will be hard to budget, such as medical insurance. We have more than 2 x of $1.46 million, zero debt, paid off house, 2 pensions, low cost part of country, but still working to make sure we have enough.
Yes. Perception of what’s needed certainly does depend on who our friends are. If many of OUR FRIENDS have so much more, we might think we need much more too. 😊
I spend about $26,000/year in retirement. The most I spent at 1 time was buying a new car for $36K cash. I withdrew $35K from retirement account and bought the vehicle. But it was an outlier large expense. I reduced my expenses to 13 items. 1. Food 2 electric. 3 natural gas 4 trash/recycle 5 water/sewer. 6 internet. 7 cell phone. 8 property tax 9 home insurance 10 auto insurance 11. gasoline 12 home/auto repair budget 13. entertainment budget. I can cover all of this for $2200/month. No pets, no cable, no subscriptions, no paid memberships. Having a paid off home and zero debt is a big advantage in retirement. Also brings low stress. I encourage you to add up all of these 13 expenses i mentioned and see what you need to live. Also, imagine this monthly expense with ZERO debt. It is more easily doable than most people think.
No medical and travel expenses?
@@Markrtsoon My entertainment budget #13 I use for travel. I do local entertainment like Class A minor league baseball games for $16 ticket and Friday fireworks. Also I go to a public arbor park/forest where it costs $5 to walk the park which is full of donated plant, flower, and tree species. Medical expenses are zero because my health has been great since I retired. Virtually zero stress, I eat and cook more healthy, proper sleep, and I live life on my own time schedule.
@@Veganisbadhunter-wx5nt very glad to hear you have good health. Best wishes for enjoying your minimalist lifestyle.
I’m in a similar situation. I can subtract water/sewer and trash as I live rural. But I’m at about half your budget. Your property taxes must be huge.
Everyone has a different retirement age in mind which can cause a large range numbers from individuals. If I retire at 55 compared to 70 I’d need much more to feel good about retiring at 55.
I think you do. Health care costs, home repairs, etc.
I agree. I spend the same or more percentage wise on my working pay versus retired pay. All depends if there is a pension involved or not to how much is needed.
I think there are more people retired on a pension than is being reported. And the value of nearly all those pensions is a million in that you would need at least a million saved for yourself to equal the money pensioners get every month. Possibly more considering those pension checks are totally isolated from market volatility .
The true value of pensions are highly undervalued.
Do you need $1.46M to retire? It depends...
1.5 million was about the right amount for me, but I live in Switzerland which is quite pricey
Is it $1.46m per person or per couple? I guess it must be per person. Also, I assume they don’t intend to leave any significant inheritance to loved ones. And this $1.46m is additional to social security. Say $2.5k a month. Yes I guess that can give a decent total of about $7.5k a month to spend. Assuming 4% returns. And 2% annual increase. Yes. Reasonable view of what’s needed.
The current FU number is $2.5M per person due to inflation.
I need 3 million to not move the goal post.
Does depend....what's your expenses?...hopefully zero debt...part of country you're living in...
Well, some of the expenses will be hard to budget, such as medical insurance. We have more than 2 x of $1.46 million, zero debt, paid off house, 2 pensions, low cost part of country, but still working to make sure we have enough.
@@Markrtsoonsad
Interesting
hello
Âge 78. Still have $3.5M. Many have so much more
Many have so much less!!!
Yes. Perception of what’s needed certainly does depend on who our friends are. If many of OUR FRIENDS have so much more, we might think we need much more too. 😊
@@livinforlessinsingapore3601
You are spot on. We can retire on much less if we have to. We don’t need to keep up with the jones in retirement
Guess your saying we can trust yous guys. How much?