Retirement Plan Post Analysis and What I Have Learned
Back story:
- 2015 Spouse retired at 65 and receives SS.
- 2021 I retired at 64.6 and receive a monthly pension and SS.
- Prior to retirement, we were able to save ~300K in cash. ~400K in 401.
In 2014, I started a budget spreadsheet to track our expenses. I virtually recorded everything to compare year to year. I felt we needed to see how rising costs would affect our income in retirement. I knew we could afford to retire while still paying a mortgage for several years but certainly did not want that expense long term. We paid it off in 11/2024($1300 month).
Our goal was to live comfortably on monthly retirement income. If needed, 401K withdrawals.
- We are currently 76 and 69.
What we have found:
- Costs have risen on everything: taxes, insurance, food, etc. I am glad we no longer have a mortgage.
- I am glad we kept the spreadsheet of expenses and spending (and we still track them) to see the costs.
If you decide to continue to live in your current home, consider the age and expenses.
- 2005 we built our 2 level 2500sf ft house.
- 2020, we started having to replace big ticket items including both AC units, well bladder tank, water heater, gutters.
- 2023 roof replaced with metal (we live in hurricane prone area).
- These costs over the last 6 yrs: ~ 27K. In addition, we recently upgraded some landscaping, back porch decking etc. Next major expense looming: painting the exterior and interior.
- We have managed all of these costs from our savings. And because we save ~7-9K yearly, I have replaced that money back in savings.
What we have learned:
- Retirement for us has been without any real surprises, we were ready to give up the daily grind.
- We did not go into this with rose colored glasses. We decided that living on 3 acres, bird watching, gardening, porch sitting, morning coffee, etc. were the things most important to us.
- The budget spreadsheet was paramount. Hands down, it really put our financial wellbeing at the center. I cannot stress that enough to know your expenses and where you stand.
We love being retired and lack for nothing. We are not millionaires and never will be, but we are rich in the ways we envisioned for ourselves.