This interesting study by Merrill Lynch and Age Wave examines where retirees choose to live in retirement. Among other interesting results, they found that not only do many retirees choose NOT to downsize their home, they actually move to a larger home to have room for family members to come and visit and as a place that the extended family can gather. That would have a significant impact on planned expenses in retirement that many people probably haven't considered.
I've tried lots of retirement income planners and one that I really like is the Fidelity Investments Retirement Income Planner. This is not a planner for someone who just wants a rough idea of how much money they need to save. This planner is for someone who is serious about figuring out what they'll need and where they stand (although you can bypass the detailed worksheets and get the rough estimate if you prefer).
CCH, a part of Wolters Kluwer and a leading global provider of tax, accounting and audit information, software and services (CCHGroup.com) takes a look at state tax rates, changes and compares differences across the nation. “Costs of living are obviously a huge consideration in deciding where to live or retire to,” said Sandy Weiner, JD, State Tax Analyst for Wolters Kluwer, CCH. “Retirees should really do their homework on the types of taxes they’d be responsible for paying and the rates they’d be taxed at when comparing different locations.”
Many retirees can live well on less than what the financial-planning industry tells them. Here's how to look beyond the formulas.
Expensive illnesses, long-term care and extreme longevity can suddenly throw retirees' estimated income needs out of whack. When the Society of Actuaries interviewed middle-class retirees in focus groups earlier this year, "they were managing very carefully, adjusting their spending where they needed to and trying not to draw down" their savings, Ms. Levering says. "But they were not planning for shock events."
Men's Sheds movement helps men find sense of purpose when they retire. Men’s Sheds began in Australia and are ‘the shed at the bottom of the garden’ but larger, well equipped with tools and benches and run by a bunch of guys as an inclusive, practical, unprogrammed domain of shared space, work and leisure. They can be for individual pursuits or community projects and they can offer people greater purpose, achievement and social interaction.
How much can you afford to spend in retirement? The answer is getting a little more complicated.