No. of Recommendations: 4
I'm wondering if any retirees here have tracked their expenses during retirement in detail?
I track some things but not to any extreme detail.
I can see in my limited retirement, less than 4 years, the biggest issue in retirement (excluding health) is inflation. That $75,000 or $100,000 or whatever you had budgeted for retirement and you think includes a decent buffer quickly looks smaller and smaller with inflation. I certainly don't think the reported numbers are close to reality with my expenses and I think inflation is much higher.
Medical insurance & care would be a significant cost item for most and this one where you get hit in multiple places unlike other things. For example, if grocery prices go up 5% well that is 5%, not good but still 5%. If medical insurance goes up 5%, your medical expenses don't just go up 5% because usually the deductibles go up, copays go up, and bills from medical facilities go up. So that extra $1,500 you have to pay in insurance is only the start of your additional expenses. If the deductible goes up $300, that has to be added, if the copay goes from $30 to $40, that can add another $100+, if the doctor and facilities charges go up 5%, that is more, etc.
I'd be curious if anyone has closely tracked medical expenses in retirement and how much they have gone up over 5, 10 years.
Thanks
Rich