As of last November, I have been retired for five years.
I would have stayed in the work force a bit longer, but I decided that given my parents' medical history after my dad's retirement, I decided to retire at 62 while my health was still good.
It was a good thing I did, since I had my little coronary episode almost three years later.
Upon retirement, one had to budget more carefully since income will be lower. Some expense will be lower upon retirement, while others will go up.
Kiplinger has an article on ten things you'll spend more on retirement.
They begin with:
You may not realize it, but you’re already practicing retirement, even if your real retirement is years away.
Many of us have been working remotely over the last year, tucked away at home because of the pandemic. Except for the part where you’re actually working, life has changed much as it does for retirees.
So take a step back and ask yourself: How’s the spending coming on this retirement test drive?
Because before you can determine how much you need to save for a fulfilling retirement (and you should), you first need to know how much you will spend in retirement.
Financial planners have traditionally estimated that retirees need 80% or more of preretirement income to maintain their standard of living, though individual situations vary greatly. Another data point: According to the latest Bureau of Labor Statistics’ annual survey on consumer spending, the average retired household spends 25% less than the average working household each year.
That said, retired households do spend more than working households on many items, including big-ticket expenses such as health care and travel. Here’s a look at 10 budget categories where retirees are likely to spend more.
To see what they are, go here.