The Lemon Fool

melonfool wrote:I think actually you need more when you're younger to do things, when older you'll do fewer things so won't need as much.

There are a couple of reasons why you might even need more money when you're older.

Firstly, the obvious one, you may need care and/or have medical and nursing expenses. That can fall back onto the state if you're broke but that's not as dignified as having choices by funding it yourself.

The second reason is, at least in my experience, I have actually been spending more since I retired. There is more time and opportunity to spend money when you're not occupied for 2,000 hours a year at work. You save on clothes, commuting and bought lunches. But there are more long-haul holidays and money-consuming hobbies.

Of course, the second ceases to be a problem if the first becomes one.

Lootman wrote:

melonfool wrote:I think actually you need more when you're younger to do things, when older you'll do fewer things so won't need as much.

There are a couple of reasons why you might even need more money when you're older.

Firstly, the obvious one, you may need care and/or have medical and nursing expenses. That can fall back onto the state if you're broke but that's not as dignified as having choices by funding it yourself.

The second reason is, at least in my experience, I have actually been spending more since I retired. There is more time and opportunity to spend money when you're not occupied for 2,000 hours a year at work. You save on clothes, commuting and bought lunches. But there are more long-haul holidays and money-consuming hobbies.

Of course, the second ceases to be a problem if the first becomes one.

Well, I was talking about 'younger but retired', since the discussion is about being retired. I think if my whole post is read that comes across. So, what I meant was, when planning retirement, I would be planning to have more in the earlier years and less in the later.

As for care, yes, of course. Personally I'm not bothered though. I shall keep £10k aside for a trip to Switzerland and just hope I don't get so bad I've forgotten why I kept it!

Mel

I am retired with a big income, sitting on a huge pile of money, but I spent just £6,600 pounds last year. I was lucky enough not to have any capital expenditure though. I could not have predicted that when I was working. Beyond the necessities, most things you can buy are either bad for you, or bad for the planet.

Careful Geoff, you might get a marriage proposal after announcing your pile of dough

Seriously, yes, I don't spend much now, don't have pricey hobbies etc. Not much of a stuff buying person and introverted, that seems to be getting stronger, so will likely socialise less in future years. I don't count work as social interaction so less of it is unlikely to make want me to go out more.

I don't have FOMO, I have FOBI!

6 months ago, Jacob said he spends $5,000 per year, although he lives in a paid house now so there is no rent.

http://forum.earlyretirementextreme.com ... se#p120039

It's currently $5k/year on top of a paid off house. Over half of these $5k are RE taxes (high in Illinois) and insurance(*).

In the past 15+ years, the $6-7k/yr has included rent instead of RE tax and home insurance.

MrUnsure wrote:6 months ago, Jacob said he spends $5,000 per year, although he lives in a paid house now so there is no rent.

http://forum.earlyretirementextreme.com ... se#p120039

It's currently $5k/year on top of a paid off house. Over half of these $5k are RE taxes (high in Illinois) and insurance(*).

In the past 15+ years, the $6-7k/yr has included rent instead of RE tax and home insurance.

Sweeping generalisation, but true for (I know not how) many: If you weren't brought up rich, you don't develop expensive tastes.

Half of $5k (he had left after his property tax) is $2.5k. More than ample to live on, including a good range of leisure activities. The constraint there is that the activities are low-cost: the standby seat rather than the posh seat; the tent rather than the posh hotel. Just think the student lifestyle (the reality, rather than the high-booze image).