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/

disinfecting cleaning services Highland Park ..

In The News:

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

Microsoft warns Windows 10 users face serious security risks as 90% of ransomware attacks target unsupported systems. Learn why upgrading to Windows 11 is crucial.

Nike unveils Project Amplify, revolutionary motorized shoes developed with Dephy that add powered assistance to every step for runners and walkers.

Cybersecurity experts warn about one of the largest credential compilations ever found, urging users to check "Have I Been Pwned" and change passwords immediately.

Quick iPhone and Android battery optimization techniques help your device stay powered all day by turning off hidden features that secretly drain power in the background.

Kodiak Driver autonomous truck achieves perfect 98 safety score, matching top human fleets in groundbreaking AI evaluation by Nauto's VERA system.

New 401k catch-up contribution rules in 2026 will change taxes for high earners over 50. Learn how scammers exploit these changes and protect your retirement savings.

Kurt Knutsson's guide covers social media privacy protection through location settings, account privacy controls and two-factor authentication to prevent scams and data breaches.

Revolutionary retinal implant restores central vision in 80% of patients with advanced macular degeneration, offering hope where treatments once only slowed blindness.

Learn how to use passkeys on Windows and Mac computers without cameras or fingerprint readers. Discover secure authentication methods that replace passwords.

Tesla's FSD v14.1.2 update reintroduces Mad Max mode, enabling higher speeds and more frequent lane changes than the standard Hurry profile setting.

A phishing email scam targeting American Express customers shows how cybercriminals use fake urgent messages to steal personal and financial information.

Facebook's new Meta AI feature analyzes your camera roll photos to create polished collages automatically, but requires cloud processing and raises privacy concerns.

A New Jersey teenager filed a major lawsuit against AI/Robotics Venture Strategy 3 Ltd. over ClothOff, an AI tool that created fake nude images from her social media photos.

Microsoft reports Storm-2657 cybercriminals sent phishing emails to 6,000 addresses at 25 universities to steal payroll credentials and redirect funds.

Astronomers have discovered asteroid 2025 SC79, a skyscraper-sized space rock orbiting the sun in just 128 days. the second-fastest known.

The Fox News AI Newsletter delivers the latest developments form the world of artificial intelligence, including the technology's challenges and opportunities.

A cyberattack on SimonMed Imaging exposed personal information of 1.2 million patients, including medical records, financial details and identity papers.

Spotify's managed accounts for kids under 13 now available in at least seven countries, allowing parents to filter and block explicit content and songs.

Friendly text conversations about BBQs and social events can lead to WEEX gold trading scams that target older adults with fake investment opportunities.

California company Skyeports creates self-healing glass spheres from Moon regolith that generate solar power and support plant growth for sustainable lunar living.

Cleafy researchers discover fake VPN streaming app Mobdro Pro that installs Klopatra banking Trojan, giving attackers full control over Android devices.

Police departments across the U.S. and Canada are adopting virtual reality training to better prepare officers for high-pressure, real-world situations.

House Bill 469 would prevent AI systems from owning property, serving as executives, or gaining legal personhood in Ohio under Representative Thaddeus Claggett's proposal.

Public voter records expose retirees' personal details to election scammers who create targeted cons using names, addresses, and voting history data.

Retirement Income Needs---Less Than You Think?

Personal Finance