Skinflint Boomers

[Prubangboy]

-So says The Economist. This generation of pensioners is not spending nearly as much as past generations. 10% less, and it's lowering inflation and interest rates as that unspent cash rolls over into savings.

 

Reason:

 

1) fear of out-living their money due to increased life spans

 

2) wanting to leave money to their heirs

 

3) stay-at-home habits from Covid are sticking

 

4) oldies feel glutted with possessions and want no more

 

Are you a net-saver well into retirement? Why? Which reason above affects your spending?

 

Me first: I spend about 70% of my monthly allotment. The rest is re-invested.

 

I expect to live for about 15 more years (no $$$ prob). No heirs. I eat out in a nice Nimman restaurant for my main meal every day.

 

I ran out of stuff to buy (I have 16 nice polo shirts). I splurge a little on travel (premium economy flights these days) and I give a bit away.

 

-And how has living in cheap Thailand affected your spending? I go to the doctor at the drop of a hat now that it's only 500 baht for the office visit.

[susanlea]

9 minutes ago, Prubangboy said:

says The Economist. This generation of pensioners is not spending nearly as much as past generations. 10% less, and it's lowering inflation and interest rates as tha

In 1 country or worldwide?

[Kinnock]

1 and 2 for me.  I try to keep myself healthy, so may live for many years post retirement.

 

I also need to know that my (24 years younger than me) wife has a good living standard after I've gone, plus want my daughter to have a good start on the house buying ladder.

 

So don't spend much on myself.

[JeffersLos]

I spend my social security check in 10 minutes then exist on mama noodles until the next one. 

[Jingthing]

In Thailand I'm richer than I thought I would be at my age and I don't nearly spend my entire SS check (which is lower than average), not even close, but I own a condo.

So sometimes I find myself looking for ways to spend MORE money.

If I had to repatriate to the US I'd be fighting homelessness.

Go figure.

Edited Sunday at 07:16 AM by Jingthing

[Baht Simpson]

Obviously with higher savings rates pensioners with a little cash are saving and/or investing a bit more until rates plummet again. It's just financial prudence. 

 

That and higher prices are leading to lower spending. It has always been this way.

 

 

[Prubangboy]

2 minutes ago, Jingthing said:

 

So sometimes I find myself looking for ways to spend MORE money.

 

I stopped making my own protein shakes and iced tea and now get them delivered from 7/11. More drinkable, less hassle, call it 120 baht a day now mercifully gone

 

Along with ice. For most of my life, the prospect of buying ice was unthinkably spendthrift.

[impulse]

28 minutes ago, JeffersLos said:

I spend my social security check in 10 minutes then exist on mama noodles until the next one. 

 

Which flavor do you recommend?

 

[JeffersLos]

1 minute ago, impulse said:

 

Which flavor do you recommend?

 

 

I sell the flavoring packets for extra income. 

[Kinnock]

7 minutes ago, impulse said:

 

Which flavor do you recommend?

 

[susanlea]

Money is well spent if you fully enjoy the product or service you buy. However sometimes the best days cost $20.

[Etaoin Shrdlu]

One reason not listed is the demise of the defined benefit pension and rise of the defined contribution plan. The boomer generation started working about the time the 401k was invented and employers started phasing out traditional pensions. It's harder to fund a pension by setting aside your own money than it is to rely solely upon an employer to fund one.

 

Here's a link to an article that describes this shift: https://www.investopedia.com/articles/retirement/06/demiseofdbplan.asp 

 

 

[Gecko123]

Uncertainty about future fiscal viability of entitlement programs plays a role, as does uncertainty about financial impact of climate change on food inflation, extreme weather events, etc.

 

Frugality in rural Thailand is a smart move. Ostentatious displays of wealth work against efforts to build community in a small farming community.

 

Also travel, which has traditionally been an attractive leisure activity in retirement, has lost much of its appeal because of over-tourism, rising costs, and growing awareness about the impact it has on the environment.

 

I think people are moving towards a more simple living lifestyle, less consumer oriented, and more community oriented as they get older.

Edited Sunday at 09:37 AM by Gecko123

[EVENKEEL]

I spend 100% of my SS and monthly pension and reach into the 401K for extras like travel, school fees and presents. 

[Lacessit]

Comparing Thailand with the Western world, it is blindingly obvious the cost of housing, food and services have inflated far less here.

 

I had a car fully serviced here recently for 1300 baht. They'd charge me that much just to open the bonnet in Australia.

 

 

[jippytum]

At least living in Thailand pensioners can spend their money on the good things in life that make them happy In a warm climate don't forget it's cheaper to run a fan than a heater. 

[Irons]

Easy to have a great life in Thailand with just an average income but hospitals could easily erode your savings.

[Prubangboy]

6 minutes ago, georgegeorgia said:

 

Especially after practically being locked up there for 6 weeks 

Why couldn't you just use the brains that god gave you, write off the pittance for the prepaid Air BNB, and go get a better room for $30 a night? On your once in a life time vacation?

 

Medical fear seems to be the big boomer-spending inhibitor. But what about death? Maybe you shoulda ordered the bigger prawn.

[georgegeorgia]

10 minutes ago, Prubangboy said:

Why couldn't you just use the brains that god gave you, write off the pittance for the prepaid Air BNB, and go get a better room for $30 a night? On your once in a life time vacation?

 

Medical fear seems to be the big boomer-spending inhibitor. But what about death? Maybe you shoulda ordered the bigger prawn.

And much worse was that cafe in the view talay 2B did not sell protein shakes !!

[Rumpelstilskin]

Longer life spans like living into one's 90s or 100s in high income countries seems to be a happening thing. So work longer;  don't smoke/vape/eat crap or binge Netflix. Get a dog, you'll live 8-9 years longer than average.  

[susanlea]

Just now, Rumpelstilskin said:

Longer life spans like living into one's 90s or 100s in high income countries seems to be a happening thing. So work longer;  don't smoke/vape/eat crap or binge Netflix. Get a dog, you'll live 8-9 years longer than average.  

How do you travel with a dog?

[Korat Kiwi]

If I was in NZ, and working then I'd expect half of my salary to disappear on rent.  The other half would likely go on power, water, food, fuel, insurance. 

 

My NZ Army pension wouldn't even cover the rent! 

 

In Thailand the NZ Army pension covers everything. 

 

It's a no brainier to stay here. 

[susanlea]

3 minutes ago, Korat Kiwi said:

If I was in NZ, and working then I'd expect half of my salary to disappear on rent.  The other half would likely go on power, water, food, fuel, insurance. 

 

My NZ Army pension wouldn't even cover the rent! 

 

In Thailand the NZ Army pension covers everything. 

 

It's a no brainier to stay here. 

Plus there are less annoying people.

[Hanuman2547]

Perhaps skinflint boomers are a product of their parents who grew up during the Great Depression era of the 1930's.

[Wrwest]

20 hours ago, Prubangboy said:

-So says The Economist. This generation of pensioners is not spending nearly as much as past generations. 10% less, and it's lowering inflation and interest rates as that unspent cash rolls over into savings.

 

Reason:

 

1) fear of out-living their money due to increased life spans

 

2) wanting to leave money to their heirs

 

3) stay-at-home habits from Covid are sticking

 

4) oldies feel glutted with possessions and want no more

 

Are you a net-saver well into retirement? Why? Which reason above affects your spending?

 

Me first: I spend about 70% of my monthly allotment. The rest is re-invested.

 

I expect to live for about 15 more years (no $$$ prob). No heirs. I eat out in a nice Nimman restaurant for my main meal every day.

 

I ran out of stuff to buy (I have 16 nice polo shirts). I splurge a little on travel (premium economy flights these days) and I give a bit away.

 

-And how has living in cheap Thailand affected your spending? I go to the doctor at the drop of a hat now that it's only 500 baht for the office visit.

"On the money". Lower cost of living was a major consideration for retiring in Chiang Mai. Sustainable monthly budget $2400.00 usd ($1570 of that from SS). Doubt as to being able to retire in the USA on that ... and lower cost medical care another consideration.

[Wrwest]

2 minutes ago, Hanuman2547 said:

Perhaps skinflint boomers are a product of their parents who grew up during the Great Depression era of the 1930's.

It does influence but did not determine, in my case ... the middle way.

[Lacessit]

1 hour ago, Hanuman2547 said:

Perhaps skinflint boomers are a product of their parents who grew up during the Great Depression era of the 1930's.

Agree. My father taught me to avoid debt like the plague.

 

The last time I owed money ( house mortgage ) was in 1974. I have never had a credit card, only debit cards.

 

When I hear about people who live from paycheck to paycheck, vulnerable to any uptick in interest rates on their debt, I think my father taught me well.

 

My son is debt-free too.

 

Too many people seek instant gratification.

Edited Monday at 04:59 AM by Lacessit

[newnative]

     I find myself with plenty of money these days but for 30 years while I was working in the US, it was a struggle.  I had to be thrifty but, luckily, I had learned thrifty habits from my parents, who had grown up in the Great Depression.  I can still remember my Mom saying 'save the bows' Christmas morning when we were unwrapping our presents, so we could use the bows for next year--and sometimes she saved the wrapping paper, as well, even in their later years when they were quite well-off.  My Dad often joked that he could have bought a new Cadillac every other year if he hadn't have had 6 kids.  But, when the kids were grown and he could have easily afforded a Cadillac, he never bought one.  Too thrifty--and he wanted to leave us kids a nice inheritance, which he did.

      I still find myself being thrifty, as is my Thai spouse.  We have never flown Business Class--ever.  But, next flight we may splurge on Economy Plus.  Or not.  We have pretty much all that we need or want so life is good here.  My spouse is younger and my main goal is to make sure he is well-provided for, as he will likely out-live me.

     

[Captain Monday]

21 hours ago, Kinnock said:

 

You never have to worry about hyponatremia

[Yellowtail]

I would very much like to see how "The Economist" determined that "...this generation of pensioners is not spending nearly as much as past generations. 10% less, and it's lowering inflation and interest rates as that unspent cash rolls over into savings."

 

Seems pretty suspect to me. How is "spending" even defined? I bet I spent more on my last phone than my mother and father spent on phones in their lifetimes. 

 

The last new car I bought costed three times what the last new car my dad bought.