My dad collected SS at age 62 and died 2 days before he turned 64. He was paying a lot for his healthcare insurance (high risk) after he closed his company at around age 60/61 - he was so looking forward to being on Medicare but didn’t make it due to cancer. Mom was 2 years younger, and she had her own account because she was contributing to SS on dad’s payroll - she was 62 when dad died, so her SS went up as his beneficiary with him deceased. Mom died at age 77. Dad learned to run a successful business, had commercial properties in a small town with a lot of positive cash flow/paid off properties. My parents were born in 1931 and 1933.
My MIL was a public-school teacher, and FIL was a lower paid clerk who eventually worked for the post office but not a postal employee enough years for pension – but they had the highest income and least expenses in retirement with her pension and both of their SS checks. They raised 4 sons who all graduated college (each taking on student debt, smaller at that time, and qualified for Pell Grant at both state and federal level). They both lived to age 92. They were born in 1929.
Yes, we have the internet and technology - and the advances with individuals being able to be informed and invest with confidence. 401k’s evolved.
The basics are still the same for financial success in life - earn, spend, invest - need enough income, keep spending in check, and invest ASAP even in small amounts early. Keep healthy - w/o good health one has trouble enjoying life and do the best one can keeping healthy.
For those on this thread that have children, or parents/others that are part of one’s consideration with one’s finances - DH and I want to leave investments for our two DDs and our grandchildren (right now we have 5 grandchildren). We don’t have big ideas with spending down our assets - but our move (selling our home and purchasing one in another city/state) will take a hit - but we have the budget for it. DH and I both turn 70 in 2026.
One may require care which spends down assets, but we don’t have control of that with disabilities unforeseen.
I agree. A combination of folks who can’t retire at 62 because their retirement savings is inadequate and folks who are planning for the possibility of living into their 90s. Also, probably a few folks like ShawWife and me who love what we do and don’t want to stop. I’m starting two companies (with co-founders) this year on top of my normal business.
I’m finding that we are spending a lot more this year. My car was 13 yo and ShawWife’s was 14 yo. We have replaced both (w/ 0.99% financing for mine and 0.9% financing for ShawWife’s which seems like great arbitrage). I got mine a few months ago – that means new bike racks, new rubber mats for artist’s junk in ShawWife’s car, an electric charger for ShawWife’s car. Plus, as a consequence of my spinal surgery, I have pushed really hard on indoor cycling for recovery – $1000 indoor bike, several indoor fans, large mat, software, and then I decided that I wanted to connect my training outdoors to my training indoors, so I got a cycling computer and cadence sensors, etc. Of course, I was supposed to lose weight and have lost almost 30 pounds (and of, course, got a scale that could measure BMI etc. to measure whether I was losing fat instead of muscle). Our 10 yo Roomba was fading so I bought a much fancier robot on an Amazon lightning price. Plus, we are doing a riverbank restoration project. Feels like I’ve somehow opened the spigot. The only good news on that front is that I am still working and in an ultimate first world problem, made a lot more money than I thought I was going to make for 2025. Does anyone else feel like in their later years, the spending has turned up?
I have typically been frugal over the years. But… I’ve decided that (if affordable), any extra costs for fitness, healthy food, good health etc are good investments. That is why I decided to get another Ikon season ski pass for next year. I’ve been skiing since 8 years old, and it’s gonna make me feel very old when I stop. The great thing about season pass is that I can ski just a few hours, without worrying about “using up” a day on my old method of buying 4paks. Also I have my eye on a new pickleball paddle with longer handle so I can do 2-handed backhand, which I think/hope will enable me to better keep up with the better players.
Your mileage may vary. As an example, I’m doing a 2026 tax projection now and we’re looking at $140,000 of ordinary income and $145,000 of long term capital gain.
We are spending more. One, because we don’t have a choice (medical expenses and new car). And two, because I am more convinced of our financial situation. Just not as fearful as I used to be.
The options on CoveredCA (aka CA Obama Care) have been sufficient for us. Our costs nearly doubled from a very good for us employer plan, but it was within the ‘still working it out’ retirement budget.
I asked my DH about the SS projections. Senior citizens VOTE and they don’t like people messing with their benefits. Plus, some finance folks are claiming that there are more wage earners contributing to the SS coffers. Maybe they will keep raising the salary cap on SS contribution payments to fill the shortfall.
I am still working so I am still at a higher tax bracket, but I don’t pay capital gain taxes because it’s offset by other losses. That’s why I said most people.
We aren’t doing anything different day-to-day than we did before we retired so, in general, though some of our spending buckets have changed, the overall outflow is pretty constant. The cabin purchase added Maine property taxes and homeowner’s insurance to our fixed expenses but, to our surprise, our annual combined utility costs are actually lower than they were with just the AZ house alone due to minimal desert AC/gas/water consumption in the summer that is not adversely offset by the cost of electricity in ME where we have no gas or water bill.
But I have a better scenario: We sell the AZ house and move to Maine where we could live large on SS alone. (As long as DH breathes, this will not happen.)
People in general are spending more now because things cost more than they did before Covid. We are in a time of inflation
The good news for us is that we are better situated to absorb those costs.
Yes we are spending more on us. Emphasis on US! We don’t have college tuition to pay or weddings. Even if we gift our adult children and give to college funds for our one grandchild, I would guess that it’s less than we spent when they were minors and definitely less than when they were in college.
Wish you didn’t use French. Even if you know the gender of the person.
That is no ordinary case. Deduction over $100,000 with $140,000 ordinary income. Anyway, aren’t you showing your capital gains tax is about $12,000. That’s pretty far from $0.