By: Ian Filippini
There are some upsides to being a retiree—senior discounts, lower taxes, subsidized healthcare and regular Social Security checks among them. On the other hand, mature Americans must contend with worrisome issues such as rising costs of medical care, long-term care, prescription drugs, and even basic necessities such as food and energy.
To determine your monthly expenses during retirement, you might start by dividing costs into two categories; those you believe will change and those you believe will remain largely the same
Costs You Believe Might Change
Housing expenses—particularly if you plan to live in your paid-off home or plan to downsize to a smaller dwelling
Medical insurance—which may shift from a premium for HMO coverage to a Medigap policy
Costs of dependents—if you have children you believe will be self-sufficient by the time you retire.
Entertainment and travel expenses—for some people, these might decline precipitously; for others, they might be far higher.
Taxes—most retirees find their combined tax burden is less than during their working years.
Automobile-related costs—retirees generally drive less than workers who commute to their jobs every day, thus spending less on maintenance, gasoline, etc.
Monthly contributions toward retirement savings accounts—not only can you stop making this contribution, you might even consider spending it.
Costs You Think Will Remain the Same
Food
Clothing—unless you previously spent large amounts of money on uniforms or other job-specific wardrobe items.
Household expenses—such as telephone, utilities, cable, etc
