Friday, February 16, 2007

Will Expenses Be Reduced For Retirement?

Last week's post on fixing things myself and saving money got me thinking about how our expenses might change during retirement. Here is my analysis of money saved and extra money spent during retirement.

Money Saved - Weekly

  • Laundering of shirts - $11
  • Dry Cleaning - $10
  • Gasoline for drive to work - $16
  • Lunch - $0 since I already bring my lunch to work.
  • Auto insurance - $0.50 (less mileage means slightly lower insurance rates)
  • Disability insurance - $15
  • Life insurance - $5
  • Spending Increase - Weekly

  • Health Insurance - $90 since I will need to pay for retiree health coverage
  • It appears the answer is No. My current estimate is that I will need to spend more money in retirement, due primarily to health insurance coverage. I didn't expect to have more expenses in retirement. I will look into this further to makes sure I didn't miss any items.

    For more on Reaping the Rewards , check back every Friday for a new segment.

    This is not financial advice. Please consult a professional advisor.

    Copyright © 2007 Achievement Catalyst, LLC

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