# Post Retirement New/Additional Expenses?



## milhouse (Nov 16, 2016)

I'm trying to get a better grasp of what expenses to account for in retirement that do not occur or are covered during working years. Hoping to get help from what folks in retirement are experiencing.

The obvious items that pop out for me are most/all of the (extended) health benefits like dental, vision, travel health, etc. And I'm also assuming there are just more health costs as one uses the medical system more frequently as one ages and obviously not everything is covered. 

House repairs might cost more since I may not be able to DIY as much. 
Do you end up paying more or less for transportation because you drive more/less?
Some sites list divorce but for me that's more of a risk that you can't really account for. 

Anything other new retirement expenses to consider?


----------



## Eder (Feb 16, 2011)

More beer & better quality wine but much less Pepto-Bismal. I drive less but sail more. Sell the house...no more repairs ever...(or tax or reno's or higher insurance or Nazi's moving in next door). I'm much healthier than when I was working...my doctor died years ago and I haven't bothered replacing him.


----------



## AltaRed (Jun 8, 2009)

Depends on your lifestyle choices. One has to determine that first.

Many retirees spend a lot more on recreation, hobbies and travel because they have the time to do so. They may spend more money on dining out and/or entertaining because they have the time to do so and/or if they are away from home more, a higher tendency to dine out than come back home and cook. Our expenses went way up in these areas after retirement.

Auto expenses could decrease due to less commuting and expensive parking (as already mentioned), but could also go up if there is a lot of recreational road travel. Add in an RV and that is a large capital outlay.

Clothing should cost less for white collar workers due to less need to be in 'business dress'.

Home repair/upgrade may go up because there is more time for DIY projects, or because one no longer wants to DIY and contract out instead, or because one downsizes into a strata community.

Added: My expenses immediately upon retirement stayed about the same for a few years until I figured out how I wanted to live my retirement. Expenses then doubled within a few years due to travel and entertainment and occasionally more than double. They may actually triple from my earliest retirement years. I no longer do as much DIY stuff as I used to do because I don't want too so we buy more help. Our health expenses only went up marginally (so far) because I still have my pre-retirement extended health benefits, albeit slightly more spent in drugs and massages and the like. But we are just aout to enter our 70s.


----------



## milhouse (Nov 16, 2016)

Thanks for the feedback. 
I'm not as interested about "very optional" lifestyle choice type expenses for this discussion because I know what we currently spend on and it's a very satisfying lifestyle. And I feel we can sit down and jot down ideas on where we can allocate more dollars but we can always pull back from this additional spend. For example, we're factoring in additional dollars for travel for example. 

I'm more curious about not knowing what you don't know, particularly due to changes caused by retirement. 
The comment by Eder about being healthier is interesting due to the positive and negative impacts it may have (more active, more injuries?). And so does how we end up filling the extra 40 hours a week part of the lifestyle choice that you mention AltaRed. 

Clothing/business dress is a common savings in retirement that I forgot about but part of that is that we don't buy a lot of clothes nowadays anyways other than topping up and updating a piece here and there. I'm unsure if transportation costs will change. We don't spend a lot on getting to work nowadays but I'm not sure if we'll end up driving around town more often due to more free time. 
Food and dining out is an interesting one. We already spend quite a bit eating out but I love cooking and hope to be more adventurous in making meals at home due to the free time. 

Prescription drugs is a good one to consider. My mother ends up paying a lot out of pocket for her meds.


----------



## 1980z28 (Mar 4, 2010)

I retired in may 2017 and for what it is worth
In my case expenses have drop by 60%
Fuel cost,food,health care,insurance,cable internet phone,running the house
Only problem is there is not enough time to get things done
So for me all costs are less not more


----------



## milhouse (Nov 16, 2016)

1980z28: Can you offer any detail why it dropped so much?


----------



## OnlyMyOpinion (Sep 1, 2013)

Check what is available to you as a senior (65+) by way of your provincial drug plan for that period of your retirement. I think most provinces have some type of reasonable senior's coverage. 

Our unexpected expenses in the first 3 years of retirement have been around mutiple cross-country round trips to tend to family issues. These have been material and were not foreseen, but they have not greatly upset our spending plans. In effect, they replaced the vacation traveling we had intended to do.


----------



## 1980z28 (Mar 4, 2010)

milhouse said:


> 1980z28: Can you offer any detail why it dropped so much?


Before i retired from ontario 
Purchased new vehicle ,backhoe tractor,126 acres of land 11 years ago,built house on 26 acres over looking ocean and 2 story garage,grow own crops,fish,cut wood,i am outside everyday,when you retire insurance is cheaper,food cheaper,transportation cheaper,have own water well and septic,land tax at 1000 per year,brew own wine,lots of blueberry,partridge berry and dogberry,also got a 1/4 moose,fish etc



For me i planned my retirement for a long time ,,in may i was 56 ,worked as a mechanic for 38 years in ontario,,just save all the money i made

I am also in newfoundland,very cheap to live here,did not want to keep working and get to old to do the things that matter to me,i use to run 7 km per day now i hike for a hour or 2 everyday

When everything is paid for and in good health there is very low cost going forward


----------



## RussT (Jul 11, 2016)

Some of our costs went down (clothing, parking, gasoline) and some went up (notably medical insurance). The only thing we didn't fully anticipate was home renovation costs. We were too busy in our last few years of working to undertake some cosmetic repairs to the house and now that we are retired we have the time and interest in updating. 

We didn't really build that into our budget very well. We budgeted for home maintenance, but the kitchen and floors are lumpy costs that will use up several years of our home maintenance budget all at once.


----------



## kcowan (Jul 1, 2010)

Entertainment costs up
Travel costs up
Food costs down, more eating in
Saving on cars, insurance, fuel, keep them longer
Use public transit, no hurry
Travel insurance up
Clothing up initially to invest in casual then down as they last longer
No more trinkets and baubles

15 years and counting.


----------



## ian (Jun 18, 2016)

All of the above but with the following comments...

-travel costs up BUT value for money up considerably. We travel more frequently, for longer periods of time but we can take advantage of travel offers, last minutes, etc. that we could not do as easily prior to retirement

-food costs lower. Less eating out, less coffees out. Eating much healthier. No processed foods, lots more fresh fruit/veg, less red meat, etc.

-other costs down because we have reviewed everything. Home internet/cable cost down through negotiation and vendor switch. Car insurance increases of 30 percent have been negated by shopping our policies. Same for house insurance. Cell phone cost down-one was moved to prepay for monthly savings that paid for a an amazon sourced new unlocked phone. Bank fees and investment fees down considerably. We review these monthly charges every year or if we notice that competition is heating up in the respective markets.

-car expenses lower, plus when we leave town for 2 months we cancel comprehensive and move to fire/theft only

- Home depot is not $100 ing us to death since downsizing and moving to a fairly new, well kept home. Property tax down from $6K to $3K

-pay less income tax

-changed our home deductable to $2500. on the basis that we would never claim for anything less. Car insurance deductable to $1000. 

-we are shopping and buying more on the internet. Selection, service, and price have driven us to this with excellent results. LLBean, amazon,costco.ca are my friends! 

Bottom line is that we have more time for everything. We have always tended to shop on value but even more so now that we have retired. Price is important but it is only one consideration for us.


----------



## Eder (Feb 16, 2011)

kcowan said:


> Food costs down, more eating in


I'll bet your taco costs are way up in the ten's of dollars!


----------



## heyjude (May 16, 2009)

I have been racking my brain to think of expenses that I have in retirement that I did not have when working. I finally came up with one: Golf. I didn’t have time to play golf when I was working, and now I am playing at least 50 rounds per year. I am spending $2000-$3000 per annum on it, including equipment. I’m enjoying it thoroughly, so totally worth it.

However, I am saving a lot of money, because I no longer have to wear business attire, I drive less, I don’t have to pay professional licensing and insurance costs or professional association membership fees (amounting to many thousands of dollars per annum). I am spending more on groceries, but I now have time to cook at home and restaurant costs are down. I’m eating better, too! 

The net effect of retirement has been a significant drop in my living expenses.


----------



## OnlyMyOpinion (Sep 1, 2013)

RussT said:


> ... The only thing we didn't fully anticipate was home renovation costs. We were too busy in our last few years of working to undertake some cosmetic repairs to the house and now that we are retired we have the time and interest in updating.
> We didn't really build that into our budget very well. We budgeted for home maintenance, but the kitchen and floors are lumpy costs that will use up several years of our home maintenance budget all at once.


Very good point Russ. 
Based on our experience as well, I'd suggest people consider buying their 'retirement' vehicle, and getting any necessary major renos done shortly before they retire if possible/applicable to your situation.


----------



## AltaRed (Jun 8, 2009)

Or having that money set aside knowing that. I knew I was going to spend $65k or so on a new car as my own retirement gift to myself.


----------



## gibor365 (Apr 1, 2011)

> The only thing we didn't fully anticipate was home renovation costs. We were too busy in our last few years of working to undertake some cosmetic repairs to the house and now that we are retired we have the time and interest in updating.


True , Never had time to repaint house, change toilets, replace roof etc... Did all after stoped working....
I spent less on gas and on food (mostly because I can go more frequently to supermarkets instead of buying a lot on weekend and throwing to garbage 30% later).
Spending more on entertainment and ... golf 
Travel is unclear, yes, you can travel more, but you can travel any time you want taking advantage on big discounts ....


----------



## milhouse (Nov 16, 2016)

Thanks for the additional replies.

1980z28: Thanks for the follow-up. I'm more of a city person but can appreciate the lifestyle you describe. 

Some of the other mentioned concepts and discussion points that resonated with me: 
I'm hoping we can take advantage of "retirement time" and benefit from being more flexible and being less in a rush be it for travel deals or day to day deals/discounts.

We definitely want to travel more. I'm unsure how to estimate the potential savings for the time we won't be in town. However, I'm not sure if I see us being away for more than 2 months per stretch so I'm not sure if we'd save much by not buying things like full car insurance a full year at a time. Need to look into that. 

I like the concept of going to the market more frequently than just once a week. 

We've been managing with one car currently. I'm curious if I retire early and the wife continues to work for a few years if a single car will still work for us.


----------



## olivaw (Nov 21, 2010)

AltaRed said:


> Or having that money set aside knowing that. I knew I was going to spend $65k or so on a new car as my own retirement gift to myself.


I set aside a little over 30K for a motorcycle as my retirement gift for myself. Not quite the same as a new vehicle but my pre-retirement Nissan was, and is, still going strong. 

65K is far more than we typically spend on a new vehicle. My wife spent about 40K on her new Hyundai last year.


----------



## 1980z28 (Mar 4, 2010)

Nice to see everyone with forward thinking for large purchases,,,eating healthier and taking ones time to get things done


----------



## ian (Jun 18, 2016)

We buy car insurance for a full year. Then call just before leaving for a few months to reduce the coverage. They either credit my account or send a refund. Usually it is in the range of $150. Fast money for a quick phone call.

We downsized to one car. We were very close to rapid transit. My son was using the car so we just gave it to him. Our logic was if we needed a second car for a day or several days we would simply rent one. Guess what,,,,we never needed to rent for this purpose over the entire four years. We did not do it to save money. Owning two cars was a hassle since we only had one underground parking space in our rental condo. Having said that I did buy a second car after moving to a home with a double garage. Used convertable that is stored in our garage for eight months per year,.


----------



## sags (May 15, 2010)

From what I have read a big expense for retirees is their adult kids. I would think most people don't budget for that.


----------



## OnlyMyOpinion (Sep 1, 2013)

sags said:


> From what I have read a big expense for retirees is their adult kids. I would think most people don't budget for that.


So would that be a 'black sheep' event, related to the oft-mentioned black swan? ig: :cower:

You raise a good point, those events that we didn't predict which might arise and bite us in retirement. 

I hope though that none of us would jeopardize the security of our retirement to help out kid(s) who still have many years ahead to sort out their finances.

We do help our kids out, but it is money we are confident we won't ever need, money that would otherwise come to them in the estate long after they really need it.


----------



## milhouse (Nov 16, 2016)

I think we're going to have to play it by ear with the car situation but I would like to see if we can just stick to one car and supplement with rentals, car sharing, and maybe Uber/Lyft if they make it to BC.

WRT adult kids or err kids overall, that's a discussion point for us right now. 
My siblings threw a lot of money supporting their kids and their educations. They're great kids but they totally impacted their parents retirement timelines.


----------



## OnlyMyOpinion (Sep 1, 2013)

milhouse said:


> ... They're great kids but they totally impacted their parents retirement timelines.


Our kids didn't affect my retirement timeline but enjoying my work did, which resulted in having a large 'buffer' when early retirement did come. 
Now, as we get a few years into retirement, clearer about our costs & assets, it is that buffer we are able to give up.
In hindsight, I'm very glad I spent a few 'extra' years working at peak earning because I don't see either of the kid's chosen paths being as well paid, so it is good to know we can help assure their FI as well.


----------



## ian (Jun 18, 2016)

A very close friend of ours is in a difficult situation. Retired early with health issues and does not have limitless resources. Her son is am emotional bully and a financial bully. Has a spouse and two children. She is just as bad. Pesters his mother day in and day out for money. He does not work. He is a pathalogical liar and not above stealing and using her credit cards. She helps out financially for the sake of the grandchildren but gets zero thanks for it. The constant pestering is taking a toll on her health, her finances, and her second marriage. There are times that she has to block his abusive calls and texts. I don't understand why she puts up with it.

She won't stop dispensing money until there is none left. The day the money runs out will be the day that he son no longer speaks to her.

Very sad situation.


----------



## AltaRed (Jun 8, 2009)

Sad story. Too bad someone does not 'blow the whistle' on an 'elder abuse' basis. Most provinces I believe have avenues/processes to pursue this.


----------



## OnlyMyOpinion (Sep 1, 2013)

I agree. It would be good if somehow/someone could isolate this lady's finances from the abuse of the described son. Particularly if she recognizes the abuse but feels helpless to stop it. Of course the first thing to disappear is likely to be the grandkids visiting Grandma which may be unacceptable to her. 
No other siblings that could step in and straighten this guy out I suppose?


----------



## ian (Jun 18, 2016)

The challenge is that she is of sound mind and body. He is playing on her emotions big time and her love for the grandchildren. She is in to this with her eyes wide shut so to speak. This is not the case of a frail, confused individual being conned. It is a case of heart over mind.....until her financial resources are exhausted of course. Other sibling is doing well, lives in the US, and practices tough love when it comes to her brother.


----------



## olivaw (Nov 21, 2010)

Many parents have a difficult time denying their adult children. It isn't uncommon to see parents buy cigarettes, alcohol or other substances for them on an ongoing basis. It is far easier to say "tough love" than to practice it.


----------



## AltaRed (Jun 8, 2009)

olivaw said:


> It is far easier to say "tough love" than to practice it.


Indeed it is. My current wife would have a very tough time as well with her adult kids, if it came to that. Would cause a strain in our relationship I imagine.


----------



## zylon (Oct 27, 2010)

Keeping the pool clean can be a chore - and expensive.


----------

