How much income a retired couple would need in 2030 for a comfortable lifestyle

[Anonymous]

Anonymous wrote:

Anonymous wrote:$250,000

per year I assume

Holy cow! I guess everybody has a different definition of what a comfortable lifestyle comprises.

[Anonymous]

For us, about $250K pre-tax initially for first 10 years of retirement; falling to $175K - $200K when we reach early to mid 70s.

Anticipated monthly expenses in retirement:

-$2K home insurance + taxes on primary residence (plan to keep for first 8-10 years of retirement, then downsize)
-$2.5K misc. other expenses (auto insurance, utilities, cell phones, streaming, lawn service, 2x/mo houseclean, etc.)
-$2K food
-$1K entertainment/leisure
-$3K periodic capital expenditures (home repairs, new cars, new clothes, furniture/appliance replacement when necessary, etc.)
-$1K out of pocket medical (guesstimate)
-$1K kids (presents, plane tix to visit us, etc.)

= $12.5K/month = $150K/yr. base expenses

Factoring in estimated taxes and travel, $250K is our number.

[Anonymous]

I don't get it. We have two kids and live on less than $250k a year, squirreling away money for retirement and our kids 529, paying for aftercare, other kids' activities, clothing and food. We have a mortgage. We still take an annual vacation and a couple long weekend trips here and there.

How are people planning for $250k in retirement when your kids are out of the house and your mortgage might be paid off?!

Yes healthcare might be more expensive, but still.
Rich people

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are hoping $150K as we won't have college or mortgage.

This.. on the low end, assuming you can get medicare.

Why won't get medicare?

[Anonymous]

Anonymous wrote:For us, about $250K pre-tax initially for first 10 years of retirement; falling to $175K - $200K when we reach early to mid 70s.

Anticipated monthly expenses in retirement:

-$2K home insurance + taxes on primary residence (plan to keep for first 8-10 years of retirement, then downsize)
-$2.5K misc. other expenses (auto insurance, utilities, cell phones, streaming, lawn service, 2x/mo houseclean, etc.)
-$2K food
-$1K entertainment/leisure
-$3K periodic capital expenditures (home repairs, new cars, new clothes, furniture/appliance replacement when necessary, etc.)
-$1K out of pocket medical (guesstimate)
-$1K kids (presents, plane tix to visit us, etc.)

= $12.5K/month = $150K/yr. base expenses

Factoring in estimated taxes and travel, $250K is our number.

2 ppl eat $2k food per month?

[Anonymous]

If you've more than one property and its not generating income than its only eating tax, insurance and maintenance.

[Anonymous]

Anonymous wrote:If you've more than one property and its not generating income than its only eating tax, insurance and maintenance.

But for some people, they can clearly afford it and the enjoyment outweighs the cost.

[Anonymous]

Anonymous wrote:

Anonymous wrote:For us, about $250K pre-tax initially for first 10 years of retirement; falling to $175K - $200K when we reach early to mid 70s.

Anticipated monthly expenses in retirement:

-$2K home insurance + taxes on primary residence (plan to keep for first 8-10 years of retirement, then downsize)
-$2.5K misc. other expenses (auto insurance, utilities, cell phones, streaming, lawn service, 2x/mo houseclean, etc.)
-$2K food
-$1K entertainment/leisure
-$3K periodic capital expenditures (home repairs, new cars, new clothes, furniture/appliance replacement when necessary, etc.)
-$1K out of pocket medical (guesstimate)
-$1K kids (presents, plane tix to visit us, etc.)

= $12.5K/month = $150K/yr. base expenses

Factoring in estimated taxes and travel, $250K is our number.

2 ppl eat $2k food per month?

NP and maybe if they go out to eat a lot and get drinks with dinner so it's $100 a dinner x 3 per week = $1.2K per month plus groceries. Agree it seems high though.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are hoping $150K as we won't have college or mortgage.

This.. on the low end, assuming you can get medicare.

Why won't get medicare?

NP and depends on what age a person retires at and whether they are eligible.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My brother and I just discussed this because he is 67 and retired. Their budget is $15K/month in retirement.

Their house is paid off.

Where is that money going?

IDK really. They live in colorado and ski alot, they travel alot, they have 3 adult children and a grandchild on the way.

I would guess food, clothes, ski tickets, house projects, home improvement, car, insurance (they talk about health insurance a lot since his wife is not yet 62).

Their travel budget is $25K/year but my brother thinks that will decrease when the baby comes because now they pay for all the kids to travel with them. He also thinks he will not be traveling as much at 80, so 13 years of travel.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For us, about $250K pre-tax initially for first 10 years of retirement; falling to $175K - $200K when we reach early to mid 70s.

Anticipated monthly expenses in retirement:

-$2K home insurance + taxes on primary residence (plan to keep for first 8-10 years of retirement, then downsize)
-$2.5K misc. other expenses (auto insurance, utilities, cell phones, streaming, lawn service, 2x/mo houseclean, etc.)
-$2K food
-$1K entertainment/leisure
-$3K periodic capital expenditures (home repairs, new cars, new clothes, furniture/appliance replacement when necessary, etc.)
-$1K out of pocket medical (guesstimate)
-$1K kids (presents, plane tix to visit us, etc.)

= $12.5K/month = $150K/yr. base expenses

Factoring in estimated taxes and travel, $250K is our number.

2 ppl eat $2k food per month?

NP and maybe if they go out to eat a lot and get drinks with dinner so it's $100 a dinner x 3 per week = $1.2K per month plus groceries. Agree it seems high though.

I assume they have adult children they invite out or make dinner at home for a few times a month.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For us, about $250K pre-tax initially for first 10 years of retirement; falling to $175K - $200K when we reach early to mid 70s.

Anticipated monthly expenses in retirement:

-$2K home insurance + taxes on primary residence (plan to keep for first 8-10 years of retirement, then downsize)
-$2.5K misc. other expenses (auto insurance, utilities, cell phones, streaming, lawn service, 2x/mo houseclean, etc.)
-$2K food
-$1K entertainment/leisure
-$3K periodic capital expenditures (home repairs, new cars, new clothes, furniture/appliance replacement when necessary, etc.)
-$1K out of pocket medical (guesstimate)
-$1K kids (presents, plane tix to visit us, etc.)

= $12.5K/month = $150K/yr. base expenses

Factoring in estimated taxes and travel, $250K is our number.

2 ppl eat $2k food per month?

NP and maybe if they go out to eat a lot and get drinks with dinner so it's $100 a dinner x 3 per week = $1.2K per month plus groceries. Agree it seems high though.

PP who posted the budget here.

It's a guesstimate, assumes that we'll eat out a lot in retirement and allowing for special occasion meals with friends/family at least 1x/month.

Breakdown:
-$800-$1K groceries
-$800 "normal" eating out ($200/wk)
-$200-$400 for special occasions

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are budgeting $350,000. But we have 2 homes so home maintenance, RE taxes, etc factor in to that budget.

We are budgeting $250K and also have 2 homes. But our homes will be fully paid off, and the kids will (hopefully!) be largely off the payroll. Kids mortgage and savings aside we spend less than that now, I think.

Our houses are both paid off already, and both kids are working. But we still seem to spend a lot on travel, entertainment, home maintenance, home projects, etc. I just paid a $5k bill for spring yard cleanup on the 2nd home. We do still pay for family vacations, and one of our kids lives outside the US so it is expensive travel. Who knows where it all goes - we don't budget now, I just pay the bills.

[Anonymous]

I'm seeing about $185k a year:
Houses (3) - $50k
Auto/transport - $10k
Food/dining - $15k
Kids - $5k
Health Insurance - $25k
Fitness - $10k
Taxes - $20k
Travel - $15k
Bills and utilities - $6k
Gifts and donations - $5k
Misc Shopping - $10k
Entertainment - $5k
Classes - $3k
Personal care - $2k
Other misc. - $3k

Fitness = an mildly expensive sport we enjoy. Obviously there is a lot of fat that can be trimmed if necessary. But this seems pretty comfortable to me.

[Anonymous]

DP..Travel would be a big expense for us. I can easily see $50K a year for the first few years as we take multiple 2-3 week trips. Hopefully, business class as we have some health issues and we have family in Asia.

$200K to be safe, so $5M NW + plus paid of home (likely a condo with minimal maintenance located in a walkable area for restaurants, grocery stores)

However we are atleast 10 years away from retirement.