Home
>
Personal Finance
>
Retirement Income Needs---Less Than You Think?

Retirement Income Needs---Less Than You Think?

It is widely written that you need 75% of your present income to maintain your present life-style in retirement. If you make 100 thousand now, figure 75 thousand in retirement.

Fifty thousand now, figure 37.5 thousand in retirement. The average retirement income in the US is 27 thousand. See what you think after reading these ideas.

Some really significant expenses you won't have in retirement:

1. Life insurance. Usually paid up by now or it has run its course. Also there is little need for it. No premiums to pay.

2. Mortgage payments. Houses are usually paid off by now.

3. Child-rearing expenses. A big one. Unless you got a really late start.

4. College costs. You saved for it and then paid for it over many years. See #3.

5. Work expenses. Transportation, clothing, lunches, etc.

6. Large house. Selling and moving into smaller digs can add significantly to your nest-egg and reduce expenses for taxes, maintenance, insurance and utilities. A reverse double whammy for this one.

7. Automobile expense. It/they should be paid off and might be used less.

8. Credit card payments. Most everybody has learned by this time not to have this debt.

9. Some people move to an area where the cost of living is very significantly lower.

10. Last and this is my favorite. You don't have to save for retirement anymore!

Jot down a figure for each one and see what you get.

These are some further considerations that might reduce your expenses. Where is it written that you won't want to change your life-style at all? After all as we get older our tastes change, often towards those activities that cost less and we appreciate simpler things.

A walk on the beach or in the quiet woods, in the morning sun or even in a light rain can be as enjoyable as anything. Some of the best things in life really are free. A cold winter evening by a warm fire with a great book (free from the library), a visit with the grandchildren and pulling vine-ripened tomatoes from your own plants are more examples of inexpensive activities. Who needs a riotous evening in a nightclub or an expensive day at a casino?

Linger over coffee and the newspaper in the morning, have breakfast with friends, take a little nap in the afternoon or day trips to attractions like museums, planetariums and nature exhibits. Aren't there things you always thought you might like to do and explore like writing, playing music, dancing, sports (non-contact) and crafts and hobbies? These need not cost a lot.

Also remember you are free to take advantage of early-bird specials, two-for-one nights and eating out at lunchtime instead of dinner. These can save as much as half on restaurant bills. Don't forget senior citizen discounts, either.

What might cost more now that you are older? Health care, of course. Putting these in table form:

1. Health insurance premiums. Mainly Medicare supplemental insurance. Figure 2000 dollars and up.

2. Prescription drug costs, both premiums for insurance and out of pocket expense. Most medications not yet off patent (have no generic) are 800 to 1200 dollars a year each. The arithmetic here is easy.

3. General out-of-pocket expense.

4. Long term care or nursing home care. Premiums for insurance if you elect to buy it, although the jury is still out on whether or not you should according to a leading consumer's magazine. The biggest expense of all is nursing home care if you have no insurance. People who have good support can often remain at home for a long time utilizing home care facilities, which costs a lot less.

Naturally every situation is different. Hopefully these thoughts will help you in your calculations. If you add up all that you don't have to pay and what you can reasonably expect to pay and can avoid a long nursing home stay you may need less than you thought.

A recent article in Money magazine had a good idea. During the last year before retirement, try to live on what you expect to have, pretend to be retired. If it is comfortable, you are probably good to go.

Play music like you always wanted. Gain the knowledge you need to learn rapidly and cut out most of the practice drudgery. Dr. Moloney is a retired Family Practitioner with a lifelong interest in music and teaching. Empower yourself to take charge of your music learning by studying his E-book. http://www.musicsimplified.com/

Brookfield limo Midway .. Lockport Chicago limo O’Hare

In The News:

Creating an email alias can help clean up your inbox by organizing emails based on purpose, like creating different aliases for shopping, newsletters and work.

A multipurpose robotic system promises to transform how items are stacked onto pallets, aiming to maximize space utilization and reduce shipping costs.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

The number of people affected by a UnitedHealth data breach in February 2024 was actually higher than previously reported and was the largest medical data breach in U.S. history.

A phishing campaign uses Google Calendar to schedule fake meeting invitations that appear legitimate, redirecting targets to phishing sites.

Toll road text scam: Fake messages claim unpaid fees, seek payment via fraudulent links. Kurt “CyberGuy" Knutsson says this scam is becoming increasingly sophisticated and widespread.

Kurt “CyberGuy" Knutsson says these steps ensure that your friends and family get to the exact moment you want them to see. Try it out and streamline your sharing experience.

Tech expert Kurt “CyberGuy" Knutsson offers tips on how to protect your identity: Be vigilant, monitor accounts, use smart security, know theft response.

Tech expert Kurt “CyberGuy" Knutsson says cybercriminals are exploiting iMessage phishing protection, tricking users to reactivate links.

It's hard to imagine life without in-flight Wi-Fi these days – but sky-high web surfing comes with its own set of privacy concerns. Here's how to protect yourself.

Over 400,000 cases of credit card fraud were reported in 2024 to the Federal Trade Commission. The CyberGuy explains how to protect against becoming another victim.

A nondescript metal box transforms into a fully functional electric motorcycle that blurs the line between vehicle and urban infrastructure.

Many apps unrelated to location still ask users for tracking permission, and Texas Attorney General Ken Paxton has filed a lawsuit seeking to end this alleged practice by Allstate.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Melody, the artificial intelligence-powered robot, is life-sized and represents a move toward creating robots that resemble people in appearance and interaction.

Here are five easy smartphone rules from the National Security Agency that you can follow to better protect your mobile device from hackers and scammers.

A U.S. robotics company has developed "Jennie," a robotic pet powered by artificial intelligence that's designed to comfort those facing mental health challenges.

Healthcare records for more than 184 million Americans were breached in 2024, but you can take steps to minimize that risk. Kurt the CyberGuy explains.

The Skyrider X1 from Rictor claims to be the "first amphibious flying passenger motorcycle," and it combines land and air travel in one sleek design.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Home inventory and restoration apps help itemize and track every item in your home in the event you have to make an insurance claim after a natural disaster.

The White House launched a new cybersecurity safety label, the U.S. Cyber Trust Mark, intended to help consumers make informed decisions on smart device safety.

Today's tech can help make life so much easier — if you know how to use it. Here are a few tips on the quickest and best ways to make your phone, laptop and other devices work for you.

Tech expert Kurt “CyberGuy" Knutsson offers Windows 11 restart fixes: Update drivers, run system scans and check hardware.

Sony and Honda's Afeela 1 EV launches with advanced tech and entertainment for $89,900. Tech expert Kurt “CyberGuy" Knutsson gives his takeaways.

Retirement Income Needs---Less Than You Think?

Personal Finance