Changes in your retirement expenditure

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82165179#Comment_82165179

We all just assumed you spent your winters on Bondi Beach

eastcorkram

https://forums.moneysavingexpert.com/discussion/comment/82165179#Comment_82165179

That's not the comments I was talking about.

lascem

Husband and I retired on exactly the same day a couple of years ago. Both 58 at the time, with hybrid pensions and mortgage paid off. We didn’t anticipate going that early, but events persuaded us to crunch the numbers one weekend to see if we could afford to go. Husband created a spreadsheet with projected income and outgoings. We ran various scenarios and even on the worst case we thought we could make it work. The transition from working flat out to doing absolutely nothing in the space of 24 hours was the hardest thing, but no regrets.

The drop in income, while significant, has been manageable (don't underestimate the costs of being employed). We are spending less overall and it more or less matches what we predicted: more spending on travel, days out; and much less on stuff like eating out (we have more time to cook nice meals at home) and smart clothes, etc. It helps that we don’t have expensive hobbies. A lot of the things we enjoy (reading, walking, spending time with friends and family) are free (if clichéd!).

I’m happy with where we are financially – importantly, we don’t feel worse off - but we are only two years in and haven’t had to cope with any unexpected expenses yet. We believe we have sufficient reserves to manage most eventualities, but who knows what is around the corner. I anticipate that as we age, we will spend more on health, care, etc. Any change in circs would have to be really severe to make me consider going back to work. I’d cut spending to the bone first.

clairbear_3

https://forums.moneysavingexpert.com/discussion/comment/82164782#Comment_82164782

I understand not all relationships are the same ours is 100% commitment we do what we can to help the other

clairbear_3

https://forums.moneysavingexpert.com/discussion/comment/82164874#Comment_82164874

Have you asked him Why he Prefers not to retire with you (assuming you have the funds)

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82165415#Comment_82165415

The drop in income, while significant, has been manageable (don't underestimate the costs of being employed).

That depends on the kind of job. When I retired, I gave up a fully expensed company car; laptop ( and broadband contract) ; mobile phone ( and contract); life insurance and health insurance. You do not have to be high flying executive to enjoy these types of perks either, they tend to come as standard for certain roles.

Plus as I was travelling a lot, plenty of free lunches ( mainly just a sandwich etc) and free dinners and drinks in hotels.

So my costs certainly went up significantly.

clairbear_3

OH just found out Today his mate has died suddenly thats TWO in a fortnight Both aged 63 (both cancer)

a compelling case for early retirement health capital more important than financial capital

barnstar2077

https://forums.moneysavingexpert.com/discussion/comment/82165501#Comment_82165501

I have heard similar before. Always from the partner with the least assets though.

eastcorkram

https://forums.moneysavingexpert.com/discussion/comment/82165501#Comment_82165501

....and so do we.

jim8888

I used my TFLS to pay off big debts when I retired at 57 - mortgage gone, car loans gone. I also had tracked my income v expenditure for years so had a good base to work from, despite under-calling "additional monthly spend" on "this and that". You know, the things that crop up that you don't necessarily budget for - additional meals out, the new lawnmower, the Amazon purchases you didn't know you needed but bought anyway, the weekend away…. eventually I started to budget 20% a month in this area, so if all our known outgoings came to £2000 a month, I'd budget £2400 to cover the unforeseen spend. And I needed it. So whatever your income, be as sure as you can be of your true monthly expenditure and give yourself wriggle room.