Thinking about retirement?

[Mart68]

Being tight I lived off savings until I was 75 and the pension was no longer free from death duty then started paying myself just under the 40% tax threshold from my pension. I am told the fund will run out when I an 116 - so should be OK but maybe I'll have to up the payments if it isn't enough and suck up the 40%.
Yes it is hugely less than when working...

I'm also living off savings, the rest I have stuck on the markets and will start drawing on in 5 years time. I have slightly less than half my working salary to live on, but when I was working I only spent half my income anyway so there's only needed to be a small amount of belt-tightening.

Once state pension kicks in at 67 I'll be better off - if I get that far.

Seems to me how much you need all depends on what sort of retirement you have planned. If it's lots of shopping, travelling and vacations then you're going to need a lot. If, like me, you mostly just hang about the house, you don't need anything like as much as the figures being bandied about here.

I am almost 7 months in and it has taken about that long for me to adapt to doing nothing. Interestingly that's about the same amount of time it used to take me to settle in to a new job.

 

[rdenney]

We’ll travel, but we travel economically.

And we buy things—that is a concern.

But my retirement home is my shop. Assisted living for me will be hiring an assistant. Of course, God laughs when we make plans.

Cars are the problem for me. I’m driving a Ford Expedition, now a dozen years old with 190K miles. But I can afford the new ones. I bought mine in 2017 priced in the mid 20’s and that included an extended warranty from Ford (which bought me a new engine at 117K miles). Same vehicles now have half the towing capacity and cost $70K used ($100k new with the full suite of options such as I am now enjoying). Where we live, reliable cars are not an option. As much as I haul around, and as delicate as much of it is, that sort of vehicle is the practical choice.

But the value of the Ford has depended on my ability to repair the steady stream of things that have needed repair. It’s not really a good enough vehicle to cost as much as it does these days. But the more reliable alternatives have an even higher cost of ownership (my wife has a Lexus).

Rick “might work an extra year to buy a new car” Denney

 

[Ken1951]

I drove Explorers - Eddie Bauers - with the V8 - That were based on the truck chassis. They were great driving the roads between the schools in the mountainous county I taught in down here for 7 years. Hated it when Ford went to V6s with a turbo - the V8s barely worked hard at all and I. loved the torque. I drive a Santa Fe now and love it, but I don't the space or towing capacity you do. I love cars - but sheesh - they're crazy expensive these days but most of them do last far longer than when I was growing up

 

[Pr0phet0ffD00m]

You'll need 23% more to retire now in the US (ave.) than the 2020 figures show. That's a really large increase due entirely to inflation.

And all those figures are likely to become eclipsed by the effects of present tariffs going into effect that will affect food, clothing, and hi-fi audio hardware and software costs from abroad.

Still many places in the U.S. cheaper than many other countries, factoring in QoL and weighting arbitrary numbers. For example, a KEF LS50 Meta is ~$1500 on Amazon (where I suspect most shoppers buy online). Same model is $1780 here (almost 20% more and we aren't even effected by Trump tariffs, they already existed). You cannot ignore the fact that the U.S. is top 3 in purchasing power and therefore economies of scale on everything trade related. Add the little fact the world economy still runs on the USD, it's leverage no other nation can rival. Imports will always be cheaper there even with tariffs.

 

[ahofer]

The U.S. has some very cheap places to retire. But I find my hobbies, including wanting a variety of live music, pushes me to more expensive places.

I can swing staying in NYC, but that’s a very different nest egg than many rural locations.

 

[Ken1951]

The U.S. has some very cheap places to retire. But I find my hobbies, including wanting a variety of live music, pushes me to more expensive places.

I can swing staying in NYC, but that’s a very different nest egg than many rural locations.

Food is cheaper down here than in NoVA, gas about the same but cheaper than many other areas, property taxes are lower, birding is very good, and we're in a town with a very large university. We have excellent doctors. The restaurants are pretty lousy though but I know how to cook!

 

[Audionaut]

I realize there has been a trend among some in the US to vilify those outside our borders but that is shameful to most here.

This balances out, because most people in Europe consider Americans to be completely uneducated rednecks who may know where Montana is and the price of an automatic firearm, but cannot distinguish Africa from Australia and Austria.

 

[Timcognito]

This balances out, because most people in Europe consider Americans to be completely uneducated rednecks who may know where Montana is and the price of an automatic firearm, but cannot distinguish Africa from Australia and Austria.

Could it be that Americans have more disposable income and rely less on social services so our "red necks" save more and travel more than the less fortunate abroad who can only afford local travel. Again there are dumb and uneducated everywhere and the US does a great job at educating the upper middle class but so much for those below that.

Disposable Income by Country 2025

Data and analysis on disposable income by country, including which countries have the highest disposable income, countries where people have the most disposable income, and various forms of income to consider when evaluating income.

worldpopulationreview.com

 

[eddantes]

Not bored -- but, technically you don't know me, so I am not, for you, a valid data point.

Now that is the kind of pedantry, us plebs can only dream of... :-D.

I've been reading this thread, becauseI too am in that boat. However living in a HCOL area and having 4 elders and 2 youngsters to support - it feels like retirement is out of the realm of possibility. While I know that in the next decade those 6 responsibilities will go away - my body is telling me that by that time my options for an interesting life will be limited. When I fight to carve out some time for my living - I dissapoint my loved ones. Oh they bear it (often silently) - but I can see that they bear it. Unless a lucky ticket comes my way - I can't see anything changing.

 

[Frank Dernie]

Could it be that Americans have more disposable income and rely less on social services so our "red necks" save more and travel more than the less fortunate abroad who can only afford local travel. Again there are dumb and uneducated everywhere and the US does a great job at educating the upper middle class but so much for those below that.

Disposable Income by Country 2025

Data and analysis on disposable income by country, including which countries have the highest disposable income, countries where people have the most disposable income, and various forms of income to consider when evaluating income.

worldpopulationreview.com

I understood not many US citizens travel abroad because they have limited holiday and the US is a huge and varied country to holiday in - we certainly have been on holiday in the US because of the variety - and maybe because they have been brought up to believe the US is the best country. Fewer than 10% of US citizens had a passport until the 1990s, now it is around 40% so not much foreign travel.

My experience over 55 years was as an exchange student in 1970 where none of the engineering students I was with had learned any geography and history of the world, some about the US ( but less than I had of and I had dropped both geography and history to specialise in sciences when I was 14).
They actually had done less science than I had at that age as well which made classes super easy for me

That is what I mean really by "broadly educated". It was also true for the engineers and mechanics I worked with in Indy car racing, they hadn't been taught about the "outside world" in school and what they had picked up in their local media was plain wrong. They had the education to do their job though, of course.

I was often told about how bad food was in England by people who had never been for example.

One lovely old couple I met in Atlanta about 10 years ago were scared to go to England because of knife crime but the reality is pro rata England has slightly less knife crime than the US. F*ck knows where this misinformation comes from but it certainly leaves people vulnerable to being badly misled.

 

[rdenney]

I’d say broad (especially “classical”) education for the working and middle class isn’t what it ought to be probably anywhere. I’ve met quite a few folks from the UK that are surprised not to see tumbleweeds in (tropical Gulf-Coast) southeast Texas. These are oil-industry people (I grew up in Houston), so technically educated like the guys you worked with in Indycar racing. Their broad knowledge was pretty limited, I’d say, without meaning any disrespect to them.

When Step 1 of a vacation abroad is a 5000-mile, $xxxx (minimum in both dimensions) flight, getting in the family station wagon and driving is going to be the affordable alternative. It’s not like hopping on the train or commuter flight and being in Paris or Rome in an easy afternoon.

I’ve been to London, Copenhagen, Geneva (plus a big chunk of Switzerland), Dubai, Tokyo, Sao Paolo, Auckland, Christchurch, and the Queensland coast of Australia (plus Canada and Mexico, of course). Even Tokyo, which was a 3-day business trip, took months of planning for a host of bureaucratic reasons. The folks I met knew less about me as an American than I knew about them, but we both learned new things about each other. I consider myself barely traveled and half of these were recreational with the other half work-related or official.

But I also routinely work with people from all over the world, because they come here.

It’s hard to draw broad conclusions from limited samples in our own experience.

Poor geographic education isn’t just about international boundaries—it’s the rare American school kid who can draw a US map and get close. But I’d have a hard time with counties and regions in the UK, too, except in broad terms.

Rick “who knows the globe” Denney

 

[Hal_01]

I’m 61, and it’s on my mind. This was a depressing read.

https://medium.com/spend-your-retirement-money/the-big-retirement-problem-no-one-wants-to-admit-having-why-cant-we-spend-our-damn-money-cf7e40cee36c

I hope to spend more time playing an instrument (I hear it’s good for brain function) and maybe learning a language. But there are only so many hours you can do those things. Apparently I’ll just be fighting for the remote and going to the doctor.

Many articles in fact almost all articles are done with the purpose to make money. They accomplish this any way possible. Dont be so fearful. If you can just do some simple accounting math in your brain, money in/money out, if you are ending up negative try and solve the issue. If all else fails, find a widow w/home who can appreciate your ministrations. My wife and I are both retired. She actually makes more retirement income than I do. Together we rock.

 

[Audionaut]

Could it be that Americans have more disposable income and rely less on social services

Swedes, Germans, Dutch and Finns travel the most and have traveled on average to more than 10 countries.

Income is not primarily linked to education in the USA. There are many people who know a lot about their job - and that's it for education.

What social benefits or services are we talking about in the USA?
The non-existent social welfare or the many people who have no functioning health insurance?

 

[Timcognito]

Swedes, Germans, Dutch and Finns travel the most and have traveled on average to more than 10 countries.

Income is not primarily linked to education in the USA. There are many people who know a lot about their job - and that's it for education.

What social benefits or services are we talking about in the USA?
The non-existent social welfare or the many people who have no functioning health insurance?

In Europe one can take train and be in another country in a few hours. The US continent is 3000 miles E-W with worlds' largest oceans on each side and 1600 miles N-S with a single land border on each side. Large distances must traversed to travel even within the country.

Europe a conglomeration of many small monolithic cultures and languages and the US is a mixture of immigrants and a single language. The experience is bound to be different.

As far social services Europe has better health, education, transportation, energy grid and environmental systems but pays for it in taxes. US pays less taxes, and lower cost for goods and services but many have a much lower quality of life than the upper middle class as safety nets and cost of living vary from state to state.

 

[Salt]

In Europe one can take train and be in another country in a few hours. The US continent is 3000 miles E-W with worlds' largest oceans on each side and 1600 miles N-S with a single land border on each side. Large distances must traversed to travel even within the country.

Europe a conglomeration of many small monolithic cultures and languages and the US is a mixture of immigrants and a single language. The experience is bound to be different.

As far social services Europe has better health, education, transportation, energy grid and environmental systems but pays for it in taxes. US pays less taxes, and lower cost for goods and services but many have a much lower quality of life than the upper middle class as safety nets and cost of living vary from state to state.
View attachment 477538

Doctors earn less than Professionals. Interesting insight.

 

[Timcognito]

Doctors earn less than Professionals. Interesting insight.

PhD, Doctor of Philosophy, could be Art, Music, History, Anthropology etc. MD is Medical Doctor, called Professor in the EU I believe.

 

[Salt]

PhD, Doctor of Philosophy, could be Art, Music, History, Anthropology etc. MD is Medical Doctor, called Professor in the EU I believe.

For a Professor you need a Habilitation. A Promotion means a Dr.

 

[JeffS7444]

I used to be crazy about cars, but somehow managed to go through life without spending a lot of money on them, and voluntarily went car-less for almost a decade. That car-less era changed my attitude about what I "needed", and opened my eyes to how expensive automobiles can be, once you rid yourself of the monthly-payment mentality and start thinking in terms of Total Cost of Ownership (TCO)!

 

[rdenney]

Swedes, Germans, Dutch and Finns travel the most and have traveled on average to more than 10 countries.

Income is not primarily linked to education in the USA. There are many people who know a lot about their job - and that's it for education.

What social benefits or services are we talking about in the USA?
The non-existent social welfare or the many people who have no functioning health insurance?

For a German, traveling to 10 countries is easier than a Texan traveling to 10 other states. C’mon! Texas is 900 miles east to west. Traveling to 10 countries for an American requires air travel for long distances.

I’ve traveled to all 50 states.

The rest of your comments don’t apply to the vast majority of Americans.

Rick “yeah, already said” Denney

 

[RexrothPigeon]

For a German, traveling to 10 countries is easier than a Texan traveling to 10 other states. C’mon! Texas is 900 miles east to west. Traveling to 10 countries for an American requires air travel for long distances.

And there's no credible rail system (yes, I've subjected myself to Amtrak, and no, it isn't a credible rail system)

I just did five European countries over the course of six weeks. Great time, easy transpo, etc.