What do your (projected) post retirement expenses look like?

Pythagorous

As it says, I'm keen to hear what people think they will need in the early days of their retirement (the go-go years!) to cover expenses, assuming the mortgage is paid and kids are through uni etc?

Or if you are currently retired, what it looks like.

My own quick back the envelope calculations, show monthly expenses as follows (this is for a married couple). Not sure if I've missed anything other than maybe health related expenses?

Cloth_of_Gold

I'm not sure that looking at others' expenses has much purpose as not only is there a great diversity of needs/wants, there is also a great diversity of income, and ultimately whatever your needs/wants you have to cut according to your cloth, in the long-term at least. 

Also, things can change quite quickly so if, for example one of you develops a health problem you might spend a good deal less on travel and eating out but more on care/aids & adaptations/private health care, and if you are at home more, more on heating.

maisie_cat

I've just been looking at the coming year's budget compared to my 2019 forecasts.
My forecast for 24/5 was £22k for two adults and my new budget is £25k but pensions are higher by the same difference.
The largest costs differences are energy as you'd expect, cat costs (cancer)  and medical because we can't rely on the NHS and we self fund £2k a year ongoing treatment/supplies.
We spend less on travel and going out that we'd planned, but hubby has discovered astrophotography and it's an expensive hobby. 
A lot will also depend on whether you are also moving, we downsized to a property with land and trees (lots of trees) and have invested in polytunnels, chainsaws, wood splitters, shredder, climbing/safety equipment, but we do have free wood and home grown veg.
I'd say your numbers are healthy and there is non essential to flex with if needed.

westv

Why four columns? Surely one (annual) is enough?

Linton

Based on nearly 20 years since stopping work :

Best in my view to assume you will would like to continue the same standard of living. that you have become used to over the past few decades rather than try to budget bottom-up.  Does your budget match you actual total spending after taking off the costs which wont apply in retirement?

 - Missing items - mobile phone, water/sewage,, insurance, healthcare (eg dentist, glasses, hearing aid), one off replacements and repairs.  We spend rather more on travel but less on Food/Household  I dont think your figures are seriously out.

 - dont assume that your later years in retirement will be any cheaper.  If you remain healthy you may well want to continue doing the things you have always enjoyed.  If not you may have extra expenses eg gardener, home help.

SouthCoastBoy

We budget for 2,650 per mth, however that leaves us with a small surplus of around 2 to 3k per year. This doesn't include large capital expenditure such as cars. Realistically once kids move out I think 2,300 would be plenty.

Pat38493

My current main planning scenario is based on net expenditure of £67K per year for the both of us.  This is after removing costs that will stop either before retirement or one or two years into retirement (latter factored in separately).  Reduced by about 5K from age 73 onwards.

However as Linton mentioned, this is largely based on maintaining the same standard of living we have now with a few adjustments - i.e. it's based on historical actual spending data.  If I was to calculate the amount we actually couldn't live without (basic expenditure) it would be more like £30K.

I would anticipate we can save at least a few grand as when we are both retired, I will have more time to optimise and find bargains on various significant items like cars, TV subscriptions and so on.

dunstonh

I would be surprised if, in the real world, a single person uses 50%of what the couple uses.     That would be far too simplistic.  For example, heating, electricity, travel, council tax wouldn't be 50% on the loss of one.

Many people spend more than their working income in the early years after retiring as they have more time on their hand and fill it with travel and dining out.   Others haven't prepared for retirement and have a massive shock in living standards when reality sets in.

Where you are in the country matters (in terms of cost of living) and also activities you can do that do or do not cost much.  

Broadly speaking. Take your current spend during your working years.  Remove debts that will be repaid and after that, you will be in the broad ballpark of what you spend to maintain your living standards  (if you have things like train tickets for commuting, then remove that as well).

Peterrr

Here's the list on our spreadsheet, which appears a little more granulised than yours but broadly similar

Albermarle

Pythagorous said:

As it says, I'm keen to hear what people think they will need in the early days of their retirement (the go-go years!) to cover expenses, assuming the mortgage is paid and kids are through uni etc?

Or if you are currently retired, what it looks like.

My own quick back the envelope calculations, show monthly expenses as follows (this is for a married couple). Not sure if I've missed anything other than maybe health related expenses?

This survey would put you approx in the middle. However as others have pointed out you have missed a few items.
You should also include an estimated annual amount to cover one off expenses that occur every few years.
Such as the cost of 'new' car ( minus what you get for yours) - the cost of major household repairs/improvements etc
Many will have a separate fund for these, but to get a true picture of annual spending you should include a figure for them.

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