Spending doesn't decline in retirement
Posted: May 20th, 2022, 10:05 am
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I think the difference is that we have a choice when retired. I probably dress better or at least more expensively in retirement than when working. There is no commuting costs and hobbies are entirely optional. My hobbies I think are probably eating out and my garden, either of which can be expensive or not as you choose. But I certainly spend a lot more that £245 per week.88V8 wrote:A few things... office clothes, if there is still such a thing... commuting... but on the whole it's true.
If anything I'd say ours has risen, more hobbies.
And during winter, more heating, which would have been trivial a few years ago but less so now.
V8
I'm retired but still paying voluntary Class 3 NI... so that's two undisputable things that are disputed.pyad wrote:I can dispute one of those items. There is no longer any age related higher personal tax allowance. It was withdrawn some years ago.
But it's highly personal dependent on circumstances. I am spending more than I was working simply because I am booking several expensive holidays a year. I didn't have enough vacation days when I worked. But if I survive as long as my father, when I get to his age, all that spending isn't happening any more. I expect if I live past mid 80 's into 90's like he has, there's a huge income surplus every month.dealtn wrote:I think most are are confusing different things.
This doesn't say there isn't a drop between the spending rate between pre-retirement, and post-retirement. What it is reflecting that once retired spending doesn't continue to decline thereafter.
This the actual paper rather than the linked to blog of someone reporting on it. As usual the source is a better place than someone's interpretation of someone's interpretation of it.
https://ifs.org.uk/publications/16055
But it's not talking about "when you are working", and comparing that period to "when you are no longer working".BullDog wrote:But it's highly personal dependent on circumstances. I am spending more than I was working simply because I am booking several expensive holidays a year. I didn't have enough vacation days when I worked. But if I survive as long as my father, when I get to his age, all that spending isn't happening any more. I expect if I live past mid 80 's into 90's like he has, there's a huge income surplus every month.dealtn wrote:I think most are are confusing different things.
This doesn't say there isn't a drop between the spending rate between pre-retirement, and post-retirement. What it is reflecting that once retired spending doesn't continue to decline thereafter.
This the actual paper rather than the linked to blog of someone reporting on it. As usual the source is a better place than someone's interpretation of someone's interpretation of it.
https://ifs.org.uk/publications/16055
Bus passes decrease spending on buses, or trains, but they serve to boost spending overall. Lots of wrinklies visiting towns and attractions which they wouldn't do if bus passes didn't help them to. And when we get there, we spend money. I've always thought any suggestion of axing travel benefits would be very short sighted in terms of the general economic benefit.JohnB wrote:* Pension withdrawals taxed at a lower rate because of the tax free sums
* living off capital has no taxation provided you are wise handing capital gains
* extra non-means tested benefits like winter fuel allowance or bus passes boost income and reduce spending
* pensioner discounts on tourist attractions, rail travel etc
all reduce spending, but can be overwhelmed by the big problem of having to pay people to do things you used to do yourself, whether than be gardening or personal care.
That is an expensive shower but presumably the airline throws in First Class travel as well?Eboli wrote:I think this is determined by one or two big ticket items.
For example, in my case, I am sure my retirement expenditure has fallen by at least 40% of what I used to spend. However, I have a penchant for visiting New Zealand and the only way I can face the 18 hours from Dubai is to totally indulge myself and have a shower before I land. This sets me back about £8k every time I do it. So Jocinda's shut down and the pandemic have saved me lots of money. I suspect 2022/23 will prove to be very expensive...
Eb.
I love flying First as much as the next guy. But I never understood this desire to shower half way through a flight. Let alone on a plane which I believe is only available on Emirates and Etihad.Dod101 wrote:That is an expensive shower but presumably the airline throws in First Class travel as well?Eboli wrote:I think this is determined by one or two big ticket items.
For example, in my case, I am sure my retirement expenditure has fallen by at least 40% of what I used to spend. However, I have a penchant for visiting New Zealand and the only way I can face the 18 hours from Dubai is to totally indulge myself and have a shower before I land. This sets me back about £8k every time I do it. So Jocinda's shut down and the pandemic have saved me lots of money. I suspect 2022/23 will prove to be very expensive...
1. I can only comment about Emirates. Your 'let alone" suggests a total bias especially as they are consistently one of the best.But I never understood this desire to shower half way through a flight. Let alone on a plane which I believe is only available on Emirates and Etihad. I am happy to stink all the way there whilst drinking champagne and eating caviar, and then have a soak when I get there.
I have bad news for you. A shower won't remove the stench of alcohol from your breath. You need mouthwash for that.Eboli wrote:Lootman noted:1. I can only comment about Emirates. Your 'let alone" suggests a total bias especially as they are consistently one of the best.But I never understood this desire to shower half way through a flight. Let alone on a plane which I believe is only available on Emirates and Etihad. I am happy to stink all the way there whilst drinking champagne and eating caviar, and then have a soak when I get there.
2. Who said 'half way through' (I said before I land). You thereby miss the purpose. I want to be awake when going through New Zealand immigration rather than stink of alcohol.
Eboli wrote:Lootman,
As normal you go down bag ends.
As I said, 'nuff said.
Eb.