Retirement Savings: spend it or save it?

by Wendy, Retirement Enthusiast/Coach
(Michigan)

How do you know how much to allow yourself to take each year -- you don't know if you'll live ten years or thirty years, and need to have some extra monies for the rest of your life... right?

For me, (and you've heard this before)... I retired at age 55. Mom is now thriving at age 96. IF, God-willing, I live as long as mom, I will have FORTY YEARS in retirement! FORTY years of pension, Social Security, health care without working! That's both scary and crazy to me!

Please tell me your thoughts on your finances. I'm not a worrier but my investments are sure taking a hit lately, as I'm sure yours are.

Do you invest retirement monies or simply use your local bank? Are you looking the other way and letting it sit until the market comes back and earns income again? OR are you a Nervous-Nellie type and need your money out now? Just curious.

Do you have a financial planner?

OK, the BIG question:

Do you start spending in retirement, finally giving yourself permission to use those monies you've saved for years now? But possibly finding a lack of funds in your later years?
-- OR --
Do you continue to save in retirement and leave your hard-earned monies to your heirs (never having enjoyed it yourself)?

** No names on these comments, make one up! Purely Interesting to see what others are thinking about here! Thanks!!

Comments for Retirement Savings: spend it or save it?

Click here to add your own comments

Retirement Living
by: William HI

Life is not about money. You don't have to spend anything to live life, however; it's more about what you say and how you say it that opens doors to greater living.

It's where all your money becomes needless, because of level of the expressed wisdom. For Moses it opened the seas.
well...
by: Anonymous

Unfortunately, every web site tells you the same few things:

  • put off social security until at least 67;
  • work until 67 if you can and work part-time after that;
  • set up a realistic budget and pay off all debt;
  • hire a financial planner (this one isn't necessarily a great idea, as they can milk a lot of money for limited benefit - maybe try a roboadviser).

    My own thought is to do as many of those things as you can without being miserable...

  • set up a reasonable balanced portfolio and take out a percentage that takes you to the average age of your parents...

    It's terrifying to face the potential to run out of money. My other fear is long term care. I couldn't possibly save enough for a nursing home...being a ward of the state on medicaid is scary too.

    Some other simple things...annuities are typically not a great option - you still have to take some market risk....like I took when I lost boatloads of money in the market this year...

    My wife is sick and five years older than I. I'll be 60 next spring and plan to retire then. I have a defined benefit pension but it has no COL...the other thing is to calculate the right type of medicare to purchase.

    Your COL from social security will typically take care of increases, but that's all the COL will cover. I've heard some folks in good health have opted for part N. I plan to take part G with my wife being ill.

    I tend to overthink the money part and underthink the things folks on this site talk about...which is why I come here....

    Wendy: If you'd like to chat about your defined benefit plan, contact me! Mine has no COLA either but doing fine here. I did this for twenty-five years, might be able to give you some peace of mind? Maybe?
    • Finance worries
    by: Bob / Midwest

    Yes, money. It seems everything comes down to money. I'm certainly concerned about the economy.

    I've been retired 7 years and loving it. But I didn't foresee inflation coming and the cost of housing skyrocketing.

    I have a financial planner and he thinks things will turn around and improve and I should be ok and I should regain the money I lost in the stock market.

    My savings are moderate. Not rich by any means. And recently thought I might have to start working again. But what could I do?

    And every year I have a new health challenge! Part of aging. I have good health insurance and good doctors. And I generally feel good. Just same old concerns about how long will my money actually last. And then what?

    Just my two cents.
    Yes!
    by: Perplexed

    Yes, this is a huge unknown! After seeing what my parents have paid in assisted living and then full care, it scares me.

    Do we save every penny for the "what if" scenario OR do we take that money and spend for todays fun?

    I’m not excited about giving all our money to our kids after we die, as we’ve already helped them so much!

    Such a great question. Can’t wait to see what others think.

    Click here to add your own comments

    Join in and write your own page! It's easy to do. How? Simply click here to return to Money: Income and Expenses.