Changing Expenses at Retirement
- Posted by e2 on 09.27.09
- Tags Modern Family, The Evolving Family
Living expenses may be lower perhaps because you can substract child support and mortgage payments, because of a decrease in income tax payments or an end to your savings plan.
You may also drive a less expensive, older automobile. Why not? You need transportation, but you do not need to impress anyone and you are no longer as dependent on your automobile.
You can save by getting a smaller house or an apartment that will eliminate the upkeep that a home requires. Either way, moving into smaller quarters can save you money.
You will not have to go to work every day so your clothing costs will be lower.
Yet, as many retired people put it,"It is pointed out all to frequently, by those a score of years or more away from retirement, that "When you reach the age of retirement, you can live on less income." I am retiring next year and I ask, Who wants to?! Why should not a man or woman, after a lifetime of sacrifices, of hard work, of effort, of giving, want most to do and to have and least to do without and to have not?"
The argument that a retired couple does not have the same commuting, clothing, luncheon, education, etc., expenses is strong enough in some respects, but what if they want to visit their grandchildren?
Chances are that nowadays if they are living in Connecticut, the grandchildren are living in California, and if they are in California, the grandchildren are probably in Connecticut. What if they want to take gifts to their grandchildren? Or help their children? Or live in a favorable climate and return to their home base occasionally to see old friends? And what about travel? All of these desires - and there are many others - cost money. There are new expenses. There are retirement expenses. They can offset the other expenses that they no longer have.
