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"I agree with Birgit, you'll need as much disposable income as when you were working. Medical expense gets higher with age. You'll probably want to travel or take in more local entertainment, maybe eat out more. (Remember, no more company paid meals.)"

NO way. WHen I was working, I was saving 30% of my pay, and of course, paying 7-8 thousand a year in SS tax and Medicare taxes. I was paying a lot EXTRA in income taxes because most of my nest egg was not in IRAs or I had to pay taxes at the highest margin rate on income spun off by my investments.

I ate in the cafeteria or out every day at work.....that costs 3 times more than eating at home.

You had to 'rush' your vacations, buying airline tickets instead of a leisurely drive to get somewhere, and you took 'vacations' to get away from the stress of work. Just to get away from the stress and everyday routine.


"On the plus side, you won't be paying payroll taxes anymore. And if a large percentage of your income has been going into 401k or IRA, that can stop. You might even find your pension and social security aren't taxed by your state. And at least 15% of your social security won't be taxed at the federal level. But I'll bet you spend as much as when you worked, maybe more. ""

You'll likely be in a much lower tax bracket as well. I was making near $100K a year. My house was paid for. I had almost no deductions that I could use. My investments spun off tens of thousands in income on top of my salary. I was paying over $8000 a year in SS and Medicare. I was socking away $10,000 a year into my 401K.

The day I stopped working, I 'saved' $18,000 a year by not working and paying the taxes, and socking money into the 401K.

My marginal tax rate dropped by nearly 10% on my income.

Retirement was good.

Of course, you don't need all your 'income' in retirement. That's a big joke, unless, of course, you have been spending 150% of your income before you retired.

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