Thinking about retirement?

[Sal1950]

I initially considered doing some freelance work, but the further away I got from it, the more I realized I wanted nothing to do with it anymore. The house is paid off, the cars are paid off, no debt and plenty of savings.

SO happy to be away from the grind. I now spend time with my hobbies, my community, my wife, my pets. Love it!

Do to unseen business issues during the early 2000s I was forced into an early retirement.
It did take a while to get used to all the free time after nearly 5+ decades of working daily but it didn't take long to seem like heaven.
Don't let idle time get on your nerves, fill it doing things you enjoy.

 

[RickS]

Last few posts got into political speculation and were deleted.

Please avoid provocative political posts. Thanks!

 

[kifeep]

Referring back to the article shared in the OP, I can imagine how it might be hard for some folks to get out of a saving mindset. But OTOH, I assumed that with so much more free time to fill with hobbies/activities/experiences, that there would be considerable opportunities/reasons to spend more money.

So for those of you who are already retired, how did your regular discretionary spending change when you stopped working? Changes in housing, insurance, etc. are, to me, easier to imagine and account for than this kind of general "doing stuff" spending.

 

[JeffS7444]

Referring back to the article shared in the OP, I can imagine how it might be hard for some folks to get out of a saving mindset. But OTOH, I assumed that with so much more free time to fill with hobbies/activities/experiences, that there would be considerable opportunities/reasons to spend more money.

So for those of you who are already retired, how did your regular discretionary spending change when you stopped working? Changes in housing, insurance, etc. are, to me, easier to imagine and account for than this kind of general "doing stuff" spending.

I'm still pretty new to the notion that I might not simply be between jobs, and that maybe I'll be okay.

It's not as if I'm suddenly dealing with a lifetime's worth of pent-up longings: I've had fun along the way too! But somehow, I managed to avoid the most bonehead ideas involving lots of monthly payments: "This Maserati will be great once I fix the rust, give it new paint, new upholstery, and figure out where the burning smell is coming from".

And while I now have more time to pursue my various interests, I also have greater know-how than I did in my younger days. Over the years, I've assembled my own speakers, preamplifiers, power amplifiers, a DAC, even an FM tuner, and it sure has taken away a lot of the high-end mystique. If I were to buy a pricey piece of equipment today, it would be because I liked the design, build and features, and not because I believed in the sonic wonders of age-annealed six-nines silver or that it would transport me to The Next Level, whatever that is.

Photography's been a passion of mine for years, but I feel as if my gear expenditures have actually been decreasing since the early aughties and I've been spending more time photographing stuff, and less time shopping or strategizing future purchases.

 

[respice finem]

Referring back to the article shared in the OP, I can imagine how it might be hard for some folks to get out of a saving mindset. But OTOH, I assumed that with so much more free time to fill with hobbies/activities/experiences, that there would be considerable opportunities/reasons to spend more money.

So for those of you who are already retired, how did your regular discretionary spending change when you stopped working? Changes in housing, insurance, etc. are, to me, easier to imagine and account for than this kind of general "doing stuff" spending.

In my case (migrating back from Germany to my native Poland in 2022), yes, there are changes, but nothing big on the spending side, really.

Housing: Sold the house in Germany, renovated my old house in Poland (the largest single spending point so far). Insurance etc. - way less expensive than in Germany. General spending opportunities are plenty, but no desire, so to speak. Since I sold the house in Germany as it was, with furniture and all, I had to replace what was missing in the new old home, some furniture had to be replaced, partly new audio stuff, TV etc. - but all this together was about 15% of the renovation cost. I never valued luxury "for its own sake", which is a major saving point, leaving me with enough "breathing space" for the unexpected things that can happen in life - such as health problems, which may become very expensive sometimes. Another saving point is avoiding subscriptions, apart from the inevitable, as power, water, Internet...

 

[Peterinvan]

Question for no one in particular: How much $$ would you need to feel comfortable about retiring in the USA, or anywhere else for that matter?

Suggestion….
First, start recording your income and expenditures for a couple of years. Use a spreadsheet. Be diligent.
Then, subtract “wants” from “needs” in that budget = essentials.

Estimate retirement income from your savings and investments. Add pension income. If it exceeds “essentials”, you can enjoy some retirements “wants” like travel or that end game audiophile gear

If not, be ruthless with improving your savings and investments. Once you retire, your risk profile should be conservative. Don’t be tempted by get-rich-quick schemes.

They say you should not deplete your savings/investments by more than 5% per year in retirement.

In my case we downsized from a nice big house with room for guests, to a one bed + den condo with a view. That capital is the basis of our retirement income.

 

[Soandso]

…how did your regular discretionary spending change when you stopped working?

I'd like to answer with 2 part personal retiree observation. First off one's idea of what activities and hobbies will be doing can not be assumed as constant. Second discretionary social plans are subject to inflationary scale of economics and let's just say patterns of illness among your circle.

For example: while retired I moved from my rural home to a series of urban rental apartment in a pleasant small town/city with an excellent hospital. Rental increases caused me to downsize periodically and inflation has led me rely on home prepared meals to the near exclusion of dining out.

When began my urban lifestyle to keep physically active would walk everywhere for about 2 hours daily including up and down the hilly parts of town, as well as to and fro carrying grocery shopping. Over the years my regular walking exercise has dropped to about 1 hour along mostly level streets wearing orthopedic knee braces using a walking stick and often taking grocery purchases home via the excellent public city bus system (using my senior citizen greatly reduced and/or free fares making it unnecessary to own a private vehicle).

At first my urban hobby was retrieving a juice bars' spent pulp on foot and processing that to raise earthworms, black soldier flies and mealworms back at my apartment indoors on racks and habitats I built. That incurred some materials expenses which I'll deem discretionary spending. However, in a couple of years handling the wet weight of pulp became physically demanding and I gave up that hobby.

Instead when moved I discretionary spent on building an indoor hydroponic array and enjoyed that hobby (no didn't grow cannabis). Again eventually managing indoors the water weight led me to give that hobby up.

So I started the hobby repairing vintage audio headphones, speakers and amplifiers bought used on-line. This entailed much more ongoing discretionary spending but didn't task me physically. Except over the years my hand coordination hasn't remained suitable for fine detail work like soldering and parts handling so for hobby purposes have stopped.

Which has led me to the latest mostly passive hobby of culturing food to consume at home. I've largely managed to re-purpose used items for the assorted arrays and keep discretionary upgrades limited. Although now want to culture an old favorite project which would require buying additional equipment and meaning new discretionary hobby spending.

Over the years my social and familial circle has also changed. Those with children at home and those retired have had their own cycles of finances and personal health problems that have developed limitations for our mutual interactions.

[As for myself: I am not on any regular medication; although have had recourse to some timely medical interventions at no cost via USA Medicare ("Advantage" plan) which would not have had I retired out on my rural home. However, I have formulated a plan if ever decide my mental capabilities should be progressively deteriorating which would necessitate up-front discretionary spending.]

 

[Kuma]

I've no regrets about retiring early. I was a cog for many, many years.

 

[JeffS7444]

My spending has decreased since I stopped working, because I no longer need as much business-casual attire, no longer have a commute, and prepare more of my own meals from scratch versus eating out or microwave-ready meals.

 

[Soandso]

How much $$ would you need to feel comfortable about retiring in the USA …

This USA graphic below demonstrates where in the different USA States your money goes comparatively farther or less.

Shelter is one of the significant continuous concern during retirement. Similar to the graphic's relative relationships can generally be ascribed to USA dwelling rentals . For example: you can still find urban USA apartment rentals not located in a city slum for under US$1,000 per month in some States. [Comparatively: in my town/city a 1 bedroom unit now-a-days rents for at least US$2,000/month (my next door neighbor moved out yesterday and landlord wants at least US$2,995/month for that unfurnished 2 bedrooms with 2 bathrooms unit).

 

[JeffS7444]

This USA graphic which demonstrates where in the different States your money goes comparatively farther or less.

Shelter is one of the significant continuous concern during retirement. Similar to the graphic's relative relationships can generally be ascribed to USA dwelling rentals . For example: you can still find urban USA apartment rentals not located in a city slum for under US$1,000 per month in some States. ] Comparatively: in my town/city a 1 bedroom unit now-a-days rents for at least US$2,000/month (my next door neighbor moved yesterday and landlord wants at least US$2,995/month for that unfurnished 2 bed with 2 bathroom unit).

Thanks but I was simply curious about what other people's gut feelings were about what "enough to feel somewhat comfortable" looks like to them.

The folks at Charles Schwab have published results of a survey conducted in the spring of 2025, and on average, respondents felt $839K would be "comfortable", and $2.3M would be "wealthy".

 

[JeffS7444]

Here we've been talking about retirement. That cipher of at least US$839,000 is from an unspecified average of just 2,200 adults' opinion who were aged anywhere from 21 to 75 year old. When I was 21 … well let's just say finances weren't my strong point. I recall insisting at age 22 to my accountant girlfriend we weren't broke living out in the country because still had $50.

Sure, I wasn't looking for anything more scientific, just people's gut feelings about what "feels about right". Personally, I like that $2.3M figure, although it seems absurd, given my customary burn rate: I do not dream of building The Ultimate A/V room, and exotic car ownership seems like it'd be 95% PITA. More bookshelves would be good though.

 

[Audionaut]

 

[Kal Rubinson]

Shelter is one of the significant continuous concern during retirement. Similar to the graphic's relative relationships can generally be ascribed to USA dwelling rentals . For example: you can still find urban USA apartment rentals not located in a city slum for under US$1,000 per month in some States. [Comparatively: in my town/city a 1 bedroom unit now-a-days rents for at least US$2,000/month (my next door neighbor moved out yesterday and landlord wants at least US$2,995/month for that unfurnished 2 bedrooms with 2 bathrooms unit).

For those of us who prefer city living (for whatever reasons), it is obvious that costs in urban USA are quite different from state-wide averages.

 

[rcstevensonaz]

This USA graphic below demonstrates where in the different USA States your money goes comparatively farther or less.

As @Kal Rubinson noted, the cost of living can vary quite a bit for urban vs. rural. As such, anything that generalizes a state will overstate or understate the actual data (e.g., Seattle vs. Yakima). So much so that the state average is useless. The same for comparing USA (as a whole) vs. other countries.

I have found the cost of living calculator at Numbeo to be extremely helpful. It provides country-level aggregation data, but far more useful is the city vs. city comparisons. Especially since it provides a range of data that includes rent under various scenarios.

I've been using it extensively to consider various locations for near-term and/or long-term retirement — e.g., Seattle, Minneapolis, Montpellier, Marseille, Tirana, Zagreb, etc.

Cost of Living

www.numbeo.com

 

[Salt]

As @Kal Rubinson noted, the cost of living can vary quite a bit for urban vs. rural. As such, anything that generalizes a state will overstate or understate the actual data (e.g., Seattle vs. Yakima). So much so that the state average is useless. The same for comparing USA (as a whole) vs. other countries.

I have found the cost of living calculator at Numbeo to be extremely helpful. It provides country-level aggregation data, but far more useful is the city vs. city comparisons. Especially since it provides a range of data that includes rent under various scenarios.

I've been using it extensively to consider various locations for near-term and/or long-term retirement — e.g., Seattle, Minneapolis, Montpellier, Marseille, Tirana, Zagreb, etc.

Cost of Living

www.numbeo.com

A personal view: maybe it depends on where you are now, and where you can imagine to be there?

 

[rcstevensonaz]

A personal view: maybe it depends on where you are now, and where you can imagine to be there?

I don't understand how that relates to more effectively evaluating the cost to retire at various locations.

I can image retiring in Seattle; but I'm not sure the bank will agree with my imagination that my 401K that is 2x what they say my balance is.

But perhaps your point is to not just go for someplace that has a lower cost of living unless you can imagine living there. However, even there, imagining does not make reality. From all of the retirement stories I have read, a person really need to ACTUALLY go to a place for a few months (or more!) to know whether it is a place they (and their partner, if relevant) want to retire. However, using data such as from Numbeo can help in the process of deciding where to look (and where to not bother).

 

[Sal1950]

As @Kal Rubinson noted, the cost of living can vary quite a bit for urban vs. rural. As such, anything that generalizes a state will overstate or understate the actual data (e.g., Seattle vs. Yakima). So much so that the state average is useless. The same for comparing USA (as a whole) vs. other countries.

I have found the cost of living calculator at Numbeo to be extremely helpful. It provides country-level aggregation data, but far more useful is the city vs. city comparisons. Especially since it provides a range of data that includes rent under various scenarios.

I've been using it extensively to consider various locations for near-term and/or long-term retirement — e.g., Seattle, Minneapolis, Montpellier, Marseille, Tirana, Zagreb, etc.

Cost of Living

www.numbeo.com

Yes it's very hard to calculate.
The biggest cost question is housing and property values-taxing.
Are you renting a loft in NYC. Holy OUCH
Or purchasing a small home in a semi rual area and paying under a $1,000 a year in property tax.
There are many ways to retire comfortably around the US for far under the calculators.

 

[Soandso]

I …consider various locations for …retirement…

A factor is does one qualify for legal residency somewhere. Additional considerations is at what point somewhere might begin to change regular factors that affect your annual circumstances (ex:Thailand) and also at what point you may be assessed taxes on your money (ex:Argentina).

For USA passport holders who wish to retire abroad and for one reason or another not have to formalize residency there are a few remaining options for an automatic long stay on a Tourist Visa with "border runs" to another country and then back. Well American retirees in Mexico are getting cracked down on trying endless land border visa renewals. For those who consider if Nicaragua acceptable most passport holding westerners' can still get border run visa renewals (and several months of extensions without leaving the country on each original tourist visa's duration).

I'm actually motivated in responding to your particular comment because it mentions Tirana, Albania. It is (last I checked) perfect for USA passport holders getting an automatic 12 month tourist visa on arrival. This is not Residency, which requires medical insurance coverage. Then after 12 months you must leave the country for awhile (sorry, not certain if 3 or 6 months) before getting another 12 month stay. Conveniently right on their border is North Macedonia, which automatically grants USA passport holders a 6 months tourist visa every 12 months. Both countries outside of their high tourist scenes have quite economical options (by USA standards) for rents and local agricultural food products.

 

[Timcognito]

There is Oklahoma, also.