How much do retired people spend per year

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1982vett

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Been “retired” for 16 years. Wife has been retired for 6. Been dipping into “retirement” funds for about 8 years now. Taxes used to be our biggest expense, now it’s medical expenses.
 

Ridgefarmer63

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That makes sense and all, but I find it hard to believe that once you make it to 65 your life expectancy jumps up to 85. Of course I don’t know the average age that retired people die, but I don’t think its 85.
I had a buddy that I spent a fair amount of time in the man cave with on work trips. He was a fairly successful intelligent fella. His theory is if you can make it out of your 50's, you should be GTG until your 80's. He said "if you're a lemon, you'll know about it in your 50's" I'm 58, lol !!
 

Ridgefarmer63

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Been “retired” for 16 years. Wife has been retired for 6. Been dipping into “retirement” funds for about 8 years now. Taxes used to be our biggest expense, now it’s medical expenses.
I think that is the issue for sure. Medical expenses. Even if you have insurance, they still seem to get their cut of you (no pun intended)
 

Caustic Burno

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I had a buddy that I spent a fair amount of time in the man cave with on work trips. He was a fairly successful intelligent fella. His theory is if you can make it out of your 50's, you should be GTG until your 80's. He said "if you're a lemon, you'll know about it in your 50's" I'm 58, lol !!
Cemetery has a lot more 40 year olds than 80’s.
Your check engine light usually comes on by your late forties.
Even with today’s modern medicine life expectancy was lower last poll I read. Obesity is the new smoking.
Medical expenses do rise with age, titanium replacement parts are expensive.
In all seriousness I don’t see how younger people today will ever be able to retire. Your earning potential goes down with age, you can’t carry a lot of debt in retirement and live comfortably as they have been programmed.Most today the only thing the own is a note.
Once you retire you are on the road to being forgot.
First five I was retired job offers every few weeks, next five every few months, now a couple a year.
 

TexasRancher

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Obviously, I am in total poverty. Good thing my cows make me some money to live on.
If you haven't paid for your home/farm and are debt free - you better have a better retirement than just SS (which is all I have for "income")
Yeah, looking at those huge numbers...most of us are in poverty. Poverty is better than being ultra wealthy, we all want to fit threw that needle and give back to our fellow man/woman. Where in upstate N.Y. are you located?...I used to live in Mannsville, N.Y., there were a lot of farms and cattle in the 1800's up until 1950's, then everyone left-quit farming and cattle....Dick Hughes was the only one left up there with Holsteins- a Dairy. Rough winters up there....Blizzard of '77 was easier to step out the second story window rather than push the front door open, dig snow and crawl up past the porch roof. Agreed everyone really should be debt free before age 50. I haven't made any money on my cows yet, started and grew my breeding herd...maybe my 3rd year break even and 4th year I'll make a little.
When i was 4, 5, 6...I used to sneak into our big three story barn to explore. i used to get my chin on the ledge and have to use my arms to lift myself up on the barns foundation rock to crawl into an opening in the barn's siding. I would attempt this feat several times a day until i got inside more than once a day....it was rough work...from chin to getting my first knee on the ledge. Anyway, I became the parallel bar champ in high school...walking my arms back and forth on the length of the bars 22 times. I'll never forget that barn rock to wood sill ledge. The slivers in my small hands if i messed up. Growing up in the country was great...not much socialization and friends...but you become one closer to nature and an introvert, knowing yourself well.
 

jltrent

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I spend a lot on junk.
Cemetery has a lot more 40 year olds than 80’s.
Your check engine light usually comes on by your late forties.
Even with today’s modern medicine life expectancy was lower last poll I read. Obesity is the new smoking.
Medical expenses do rise with age, titanium replacement parts are expensive.
In all seriousness I don’t see how younger people today will ever be able to retire. Your earning potential goes down with age, you can’t carry a lot of debt in retirement and live comfortably as they have been programmed.Most today the only thing the own is a note.
Once you retire you are on the road to being forgot.
First five I was retired job offers every few weeks, next five every few months, now a couple a year.
I couldn't agree more.
 

Dave

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Cemetery has a lot more 40 year olds than 80’s.
Your check engine light usually comes on by your late forties.
If the average life expectancy is 75 when someone dies at 50 someone else need to live to be 100. Or two live to be 87.5. A lot of it is genetics. My grand parents live to 75, 88, 89, and 93. My Dad made it to 89 and was a worker up until a month before he passed. His brother is 93 and other than some memory issues is pretty fit. 9 cousins on Dad's side are all alive and healthy ages ranging from 72 to 62. My mother's youngest sister struggled with obesity all her life died around 50. Her daughter who had the same issues I don't think made it to 50.
I worked with some very old 40 year olds. And some men in their late 60's and into their 70's who would work men half their age under the table. I think it is a combination of genetics, attitude, and drive.
 

coachg

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Been retired since ‘09. ; 30 years teaching high school and community college. My wife and I only have utilities to pay for and our food , much of which I grow in our gardens . I hunt and provide venison for us and we both love to fish and eat fish often .We tithe to our church and support our local schools with their fund raisers and other civic groups in our community. I have a landscaping/ mowing business in the summer and most of that income plus a little off our cattle usually goes back to the expensive hobby of raising cattle.I started drawing SS 2 years ago and with that money bought a newer truck and a cab tractor. The Lord has really blessed us with excellent health and 6 healthy grandchildren, ages 11 through 2 months old. Other than the payments on the truck and tractor we live on less than 50,000 a year for both of us . We did some traveling when we first retired but with grand babies that has ended for now . $100,000 a year to live after retirement ? Must eat out every night and drink expensive liquor.
 

Jeanne - Simme Valley

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@TexasRancher I live 30 miles South of Syracuse, 10 minutes off I-81.
Now, NY is the 3rd largest dairy state. Agriculture is the number 1 business in NY.
We learned that it was really important to have a door that opened IN. It's one thing to have to shovel your way out the doorway, it's another when you can't PUSH the door open!!!
 

TexasRancher

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@TexasRancher I live 30 miles South of Syracuse, 10 minutes off I-81.
Now, NY is the 3rd largest dairy state. Agriculture is the number 1 business in NY.
We learned that it was really important to have a door that opened IN. It's one thing to have to shovel your way out the doorway, it's another when you can't PUSH the door open!!!
That makes me happy to hear about N.Y. returning back to agriculture....forefather's fencing being rebuilt...lots of nice stone field perimeters....I can see people re-clearing the trees off for farming. Sure got over-populated with deer last 20 years....all the hunters from the 1970's are pretty much dead now....don't think we have the replacement hunters of yesteryear.
 

Stocker Steve

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I thought a couple could live well on U$S 32,000 per year and have been doing that until late 2021. Then we started getting some 5 figure medical bills that we are discussing with the insurance company.
 

Son of Butch

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I'm just curious. This article says, "At age 65, Americans are expected to live an average of another 19.4 years, and the typical retirement-age American spends $50,220 a year."
Update:
Read an article today by Motley Fool contributor Maurie Backman.
"Generally speaking, to maintain a similar lifestyle in retirement, the equivalent of 70-80% of former paycheck is required."

70% of $71,740 = 50,220

80% of 62,775 = 50,220
80% of 60,000 = 48,000
80% of 50,000 = 40,000
80% of 40,000 = 32,000
 

shaz

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Update:
Read an article today by Motley Fool contributor Maurie Backman.
"Generally speaking, to maintain a similar lifestyle in retirement, the equivalent of 70-80% of former paycheck is required."

70% of $71,740 = 50,220

80% of 62,775 = 50,220
80% of 60,000 = 48,000
80% of 50,000 = 40,000
80% of 40,000 = 32,000
That's been conventional wisdom for a good while now. I think the bottom line is don't retire until your house is paid off. Obviously, medical expenses are the elephant in the room. There's just no way to predict what will happen.
 

Caustic Burno

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That's been conventional wisdom for a good while now. I think the bottom line is don't retire until your house is paid off. Obviously, medical expenses are the elephant in the room. There's just no way to predict what will happen.
The ticket is to retire debt free until you adjust your lifestyle to being retired.
What usually happens is in the first two years you’re hitting that bucket list. That’s about the time you realize you can’t maintain this pace. You are still going to have expenses just don’t have them going into retirement.
If you draw 100k a year and spend it your going to be in trouble.
After I retired I really saw the value of Social Security for so many elderly that couldn’t manage finances.
This is all about management, there is no job to get a raise or overtime to make.
I bought a new 21 Chevrolet Z71 and 17’ Mako last year.
Until this month the Mrs and I were drawing 3K a month from the retirement account. That’s not what gets paid into the account. I called this month and told the custodian of the account to increase our monthly payment by 200 dollars.
Mrs and I still are saving a substantial chunk of our retirement income our account continues to grow.
You don’t know what is coming at you and your earning potential in the workforce isn’t good.
 

shaz

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I've heard that if you withdraw 5% annually from your 401K your money will last forever. Makes sense based on a 7% return every year.

Better be one fantastic account balance when you retire I guess.
 

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