It’s a given that when we retire, many expenses are reduced or eliminated. It is true. Since I retired, I can speak with my own experience.
What Is Less
I spend much less on numerous things. As I do not commute daily anymore, I buy less gas for the car. I never need to shop for clothes any longer. Since I am home more often, there is more time to cook, so less is spent buying prepared food.
When I Was Working
When I was working, I was covered by my employer’s benefits plan, depending on the employer at the time. So there was coverage for general medical costs, dental, vision, and if needed hearing. Now without an employer’s coverage, I am in the new world of Medicare.
No Longer Covered By Virtue of Working
As a typical American retiree, I signed up for Medicare upon reaching the minimum enrollment age. My Medicare premium is significantly less than what I was paying even as an employee under an employer’s plan. However, Medicare has its trade-offs. And in general Medicare of course does not cover everything.
Medicare does not cover the kinds of dental, vision, or hearing costs that were normally at least partially covered by being employed. (One sad person told me “Medicare hates my head,” meaning vision, dental, and hearing are all centered in a person’s head.)
I did sign up for a Medicare advantage plan, so there is some vision, dental, and hearing coverage, but it is minimal, and woefully short of what I was used to previously. Out of pocket costs for these items are higher than when I was working.
What It Means
So some costs are reduced once one retires, others are not, and in some cases increase. Therefore, one should plan accordingly. Being retired does not mean freedom from all costs. If you are not yet retired, may I suggest you include saving and investing in your activities, as the results of these two activities will make a big difference when you do retire.
Gratitude
I am grateful that I am healthy enough to enjoy being retired. Heck, I am grateful I have lived long enough to retire. And while I recognize that some items are more costly now that I am retired, it does not mean I should neglect these aspects of my health. I want to be frugal, not parsimonious.
How have you dealt with financial changes in retirement? Send a comment here: Contact.
The World Map In Musical Notation was “was created with the intention of viewing the world in musical terms… The entire composition is scored for 37 instruments and contains a total of 32 measures. The total playing time is approximately 40 seconds.” Made (and composed) by James Plakovic. Published in New York by MusicArt in 1996. The composition can be heard on YouTube. Map courtesy Michigan State University.
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