Reducing expenses in retirement

[sue1947]

Thanks Sue. I will look into it in CA but I suspect that the cost of health insurance differs from state to state. What you quoted sounds low to me here. I know a couple in their late 50s who were forced into retirement due to the layoffs can't find anything that costs less than $1000 per month with similar deductibles.

Look at Kaiser Permanente. I was directed to them when I got sick while in CA last year. From the little I saw at the time, they looked like a similar HMO.

Sue

 

[talkamotta]

Talkamotta - how are you enjoying your retirmement - i recall your countdown!! Funtime

THANKS for thinking of me.

I love being retired. I dont miss work at all. I called in sick on my last day at work? I had a stomach ache. This week I will be going in for gallbladder surgery. It doesnt hurt all the time so during those times I have been loving life.

In a week or so things will be get lots better. The weather is starting to change and my flowers are wanting to bloom. I cant wait to start working in the yard. Weather permitting I sit outside and read.

Next month I will be going to see my grandchildren in Dallas. At the end of May we are going for 2 weeks up to Northern Washington and then drive down to Oregon (Mt. Hood).

My friend said I would need a day planner when I retire. I think she is right. Hopefully it wont be filled with doctor appointments, etc but with other fun things.

 

[Rose Pink]

THANKS for thinking of me.

I love being retired. I dont miss work at all. I called in sick on my last day at work? I had a stomach ache. This week I will be going in for gallbladder surgery. It doesnt hurt all the time so during those times I have been loving life.

Will be thinking of you and keeping a prayer in my heart for your speedy recovery. Went to the City Creek opening Thursday and thought of you then, too.

 

[pedro47]

Save, save, and invest your money wisely and you will be ok. The one major factor is health care in retirement. I retired at age 54 and retirement have been great so far.

No mortage and no credit card debt. Stay healthy, relax and eat the right foods.
Good Luck !!

 

[Rose Pink]

Save, save, and invest your money wisely and you will be ok. The one major factor is health care in retirement. I retired at age 54 and retirement have been great so far.

No mortage and no credit card debt. Stay healthy, relax and eat the right foods.
Good Luck !!

We have no mortgage and no credit card debt and staying healthy is definitely more doable if you eat a healthy diet and stay active. However, although a healthy lifestyle increase the odds in one's favor, it is no guarantee that major, catastrophic health care costs won't arise. Although they do have a better chance of escaping debilitying disease, otherwise healthy people do sometimes get heart disease, cancer, Alzheimer's Dementia, arthritis (needing replacement surgery) and so on. They also may fall victim to accidents not of their own making.

Our medical insurance is $1003.34 per month for the two of us (a bluecross policy). DH's employer pays $687.08 leaving us an out-of-pocket expense for insurance of $316.26. Our out-of-pocket share for dental insurance is $27.26. Add to that the costs of deductables and co-pays and medicines. It can really add up. And then, DH's employer has discontinued medical for retirees. We don't know what we will do when he retires. Will Medicare still be there? Will we have to be 80 years old before we can qualify? Anybody know the future of healthcare in the USA?

It's the unknowns that keep DH employed. Even though the house and cars are paid for, repairs come up. Repairs can cost tens of thousands on a house. This year we will need a new roof and a new water heater. We are still working on remodeling the inside as well. Don't forget homeowner's insurance--which will only go up and up as the years and natural disasters take their toll. Don't forget auto insurance which will also increase over the years. Just don't forget inflation in general.

Don't forget the costs incurred when you die. Funeral, burial/cremation--there are so many add-ons and local mandates such as whether or not you must be embalmed, type of casket, type of headstone, opening and closing of the grave, plot, flowers, obits (which used to be free but can now be very costly), and so on. I suggest you decide what you want to happen to your remains when you die then contact a local mortuary to see how much that will cost.

 

[ILuv2Travel]

Thanks Sue. I will look into it in CA but I suspect that the cost of health insurance differs from state to state. What you quoted sounds low to me here. I know a couple in their late 50s who were forced into retirement due to the layoffs can't find anything that costs less than $1000 per month with similar deductibles.

My husband had switched jobs when I was pregnant with my youngest child. The cobra cost was astronomical ($1200/month) but I was able to secure 2 policies directly through Horizon BCBS which were equal (if not a tad better) for less money ($800/month) by separating myself from my husband and children. Same plan but two policies.

Also not sure on your age but if you are old enough for medicare the supplements really vary. Do your homework. Check out joining an organization (professional or age restricted) which you can join their group plan at a discounted rate.

 

[Janette]

We are fortunate that we were educators and have 60% of our best five years as income plus SS. We also have health insurance from our state. We own several timeshares and travel to see family so our life style is wonderful. We don't eat out often even when we are traveling. We prefer our normal meals and enjoying a relaxed vacation. Hubby plays golf often but it is wonderful for his health and attitude to be outside each morning. I walk, straighten the house, and then it is time for him to be home. We are very blessed!

 

[retailman]

Debt is what needs to be looked at. In this day in time, I do not see anyone
retiring that has any house payment, car loan or credit card balance.
If thoses are good, you might consider it.

 

[bogey21]

Don't forget the costs incurred when you die. Funeral, burial/cremation--there are so many add-ons and local mandates such as whether or not you must be embalmed, type of casket, type of headstone, opening and closing of the grave, plot, flowers, obits (which used to be free but can now be very costly), and so on. I suggest you decide what you want to happen to your remains when you die then contact a local mortuary to see how much that will cost.

IMO all of this is a waste of money. A couple of years ago I signed up with an old established funeral home for cremation at a guaranteed cost of $675 no matter where in the US I may die. I figure it is cheaper to ship ashes than a body. I pay something like $55 a year to keep this current. My instructions are no service , no casket, no viewing, etc. On the other hand I have a separate $10,000 life insurance policy whose sole purpose is to fund a big party for all of my friends to celebrate my life.

George

 

[K&PFitz]

Thanks for all the good answers to my original question. Loads of good advice on these pages. The expenses for health care is a real concern. We'll have the mortgage paid off at retirement time, but looks like we'll be swapping a mortgage payment for a health insurance premium. Oh, well. That's life.

We're all a lucky group to be able to have such a discussion, or maybe we're just smart. I can tell you that, having worked in the banking world for three decades, I have seen many people that have virtually nothing saved for retirement. They're counting entirely on SS. I'm glad I've been throwing money into a 401K since my first opportunity ages ago.

 

[ace2000]

I think to fully have the answer to your original question, you'll have to consider what health care is going to look like in five years. At this point, who really knows, but with Obamacare it should be significantly cheaper than today.

 

[PigsDad]

I think to fully have the answer to your original question, you'll have to consider what health care is going to look like in five years. At this point, who really knows, but with Obamacare it should be significantly cheaper than today.

:hysterical: :hysterical: :hysterical:
Thanks for the Monday morning laugh! I needed that!

Kurt

 

[hypnotiq]

At this point, who really knows, but with Obamacare it should be significantly cheaper than today.

:rofl: :rofl:

That's cute that you think that.

 

[ace2000]

:hysterical: :hysterical: :hysterical:
Thanks for the Monday morning laugh! I needed that!

Kurt

I'm talking out of pocket expenses to the individual.

 

[Rose Pink]

IMO all of this is a waste of money. A couple of years ago I signed up with an old established funeral home for cremation at a guaranteed cost of $675 no matter where in the US I may die. I figure it is cheaper to ship ashes than a body. I pay something like $55 a year to keep this current. My instructions are no service , no casket, no viewing, etc. On the other hand I have a separate $10,000 life insurance policy whose sole purpose is to fund a big party for all of my friends to celebrate my life.

George

DH wants to be cremated. I haven't decided. We don't want viewings. We don't want embalming. I don't want an obituary. However, if that is part of someone's wishes, he/she should consider the cost. DH's father had a prepaid funeral plan and it saved us (meaning me) the headache of having to make those arrangements and pay for it. DH took his brother to the same mortuary and used part of his brother's inheritance money to buy a prepaid funeral for said brother.

Of course, one can always donate his/her body to science and spend his/her money on life.

I'm just reminding people to think about this as part of retirement planning. You are going to die someday. Don't saddle your children and grandchildren with the cost when they are already grieving your loss. And don't underestimate the costs of your wishes. It can easily cost $10K for a basic funeral and burial. Many places it is much, much more.

 

[hypnotiq]

I'm talking out of pocket expenses to the individual.

edited - this would have violated the TUG rules on politics. my bad.

 

[Passepartout]

Sheesh! You guys are morbid. Oh, I know none of us are getting out of this alive, so pre-pay for the sendoff of your choice.

Me, I'm saving by getting the daily free coffee at McD's and walking to the store for the buy-it-today specials at the meat department.

House is paid for. Health insurance is budgeted for. I had intended to go into retirement with a new pickup-paid for, but my former employer had a different idea of timing my departure.

Sometimes you just have to go with the flow. You can't plan every detail from the last time you punch the clock to the grave, but you can reduce the unpleasant surprises.

On the whole, retirement is pretty good.

Jim

 

[vckempson]

I think to fully have the answer to your original question, you'll have to consider what health care is going to look like in five years. At this point, who really knows, but with Obamacare it should be significantly cheaper than today.

It's impossible to know. Even by today's standards it's impossible. Health insurance rates are so specific as to where you live. On this thread alone, we've got one who thinks that $180 is expensive. We haven't seen those kind of rates rates here in NJ for over 20 years. We're at the opposite side of the spectrum, with individual rates at $600 or more. My family rate (I'm self employed) is over $20,000 a year, not including my dental coverage.

 

[Beefnot]

DH wants to be cremated. I haven't decided. We don't want viewings. We don't want embalming. I don't want an obituary. However, if that is part of someone's wishes, he/she should consider the cost. DH's father had a prepaid funeral plan and it saved us (meaning me) the headache of having to make those arrangements and pay for it. DH took his brother to the same mortuary and used part of his brother's inheritance money to buy a prepaid funeral for said brother.

Of course, one can always donate his/her body to science and spend his/her money on life.

I'm just reminding people to think about this as part of retirement planning. You are going to die someday. Don't saddle your children and grandchildren with the cost when they are already grieving your loss. And don't underestimate the costs of your wishes. It can easily cost $10K for a basic funeral and burial. Many places it is much, much more.

I do not want cremation, and I want a viewing. I want folks to see my body and wail loudly. My life insurance will be plenty hefty enough to cover those burial expenses.

 

[KauaiMark]

Choosing when...

I have a question for the retired Tuggers out there:
I'm 55, so I spend a good bit of time calculating when I'll be able to retire...
So, retired folks, were you able to live on less after retirement? Thanks!

If you can choose when, then start practicing now. The additional money you save will come in handy.

I was retired (laid off) at 55 (9yrs ago) so the "practice" started almost immediately since no one was hiring and while the severance pay held out.

We looked at every expense and compiled lists of "don't need" and "could live without". Everything else went to "is there a less expensive alternative" list.

Paid off the house loan and secured a home equity loan for an emergence source of low interest cash if needed.

To maximize income, our investments strategy changed from "growth" to "income". If it didn't pay a regular dividend, it was on the "sell" list while looking for long time dividend generators.

This isn't as easy as it sounds. Mistakes in picking winners/losers and world politics can change things over night, but we had some good luck dumping all the HiTech non-dividend stocks just before crash. Not every income investment worked out but for the most part it's covering a big chunk of our monthly expenses.

Like everyone else has already mentioned, health care was the big ADDITION to the expense side. $755/mo for a high deductible ($5400) HSA plan. No bargains hear as we were turned down (because of age in my opinion) from the two big "Blues" before enrolling with Kaiser.

I'm currently working part time in a school district substitute teaching to offset the medical insurance payments.

-- Mark

 

[KauaiMark]

Beware cheap plans

My oldest Son (age 40) just bought a policy with a $5,000 decuctible for something line $180 a month. Sounds rediculous, but that is what it cost.
George

We had a "cheap" $5000 deductible plan and thought that as long as nothing major happened, we could come up with $5k to pay for anything major.

My wife fainted at a store, ambulance was called, emergency room and discharged later that same night.

Diagnosis? She fainted.

The bill: $15,000!!
-- Insurance payout: $1k
-- What I had to pay: $14k

Lots of fine print about what the definition of "Hospital stay (overnight)" and "required treatment" (no cause found). Ambulance bill alone was $1500.

We dropped them and went looking for a "real" insurance plan

 

[KauaiMark]

Little debt as possible

Debt is what needs to be looked at. In this day in time, I do not see anyone
retiring that has any house payment, car loan or credit card balance.
If thoses are good, you might consider it.

Agreed! Credit card debt is a killer.

 

[Rose Pink]

Sheesh! You guys are morbid. Oh, I know none of us are getting out of this alive, so pre-pay for the sendoff of your choice.

Me, I'm saving by getting the daily free coffee at McD's and walking to the store for the buy-it-today specials at the meat department.

House is paid for. Health insurance is budgeted for. I had intended to go into retirement with a new pickup-paid for, but my former employer had a different idea of timing my departure.

Sometimes you just have to go with the flow. You can't plan every detail from the last time you punch the clock to the grave, but you can reduce the unpleasant surprises.

On the whole, retirement is pretty good.

Jim

Not trying to be morbid, Jim. Just reminding folks to plan ahead. Unless by morbid you are referring to the cost of healthcare and healthcare insurance. Then I agree, it is morbid or at least the worry over it contributes to morbidly. I like your approach to just go with the flow--just as long as the flow isn't caused by catastrophic flooding taking you out to sea. (isn't there a song about a dog being swept away?). Just looked it up. Shannon

 

[Rose Pink]

If you can choose when, then start practicing now. The additional money you save will come in handy.

-- Mark

good idea! Now if DH could just agree on what isn't a necessary expense.

 

[Patri]

I do not want cremation, and I want a viewing. I want folks to see my body and wail loudly.

And if they don't, you'll never know.

We are really leaning away from the traditional funeral. People have no time to think rationally and spend way more than they can afford.