I don't think this is the case, all stats I've seen show a higher cost of living in Australia vs USA, even excluding housing cost. From memory 22% higher
$58,325 is comfortable for who??
- Thread starter MTR
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I don't think this is the case, all stats I've seen show a higher cost of living in Australia vs USA, even excluding housing cost. From memory 22% higher
Yes, That's the one. Thanks Kathryn.
I'm not American, so I am only going by what I have read.
MMM considered living in Boulder, Colorado which is 12 miles away. Apparently, houses generally run 50% more.
MMM has quite the following. Imagine if they all made their retirement nest egg, then skipped off to say Atlanta, where houses can be scooped up for $25k.
How many here talk about skipping off o/s to live really cheap..it's no different.
After the house is paid off...what costs more?
My MIL lives in melbourne, and she lives easily on $25k or less.
Takes at least 2 o/s trips per year.
The food is basically the same price.
Cars same.
Restaurants same.
Clothes same
what am I missing?
oh...booze, cigs ?...cheaper in USA, so I hear.
I think this is the data source to which sanj refers: http://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=Australia&country2=United+States
Having lived 7 years in the USA myself, I can attest to Australia's higher comparative COL.
I put very little faith in these types of things.
People always talk about the high price of groceries (for example) here, and they aren't.
I don't agree with the tables in the link.
Both my parents and my inlaws are retired. My parents are techincally in the "comfortable" category and just simply cannot spend it all. Inlaws are on pension only and live as well as we do, if not more social.
The thing that the "gurus" neglect to think of is peer groups.
If retires are surrounded by other high income retires who travel overseas often then yes they may need the higher figure.
My parents are in a caravan club so they travel quite extensively. They are not interested in international travel (apart from NZ where we have some family - does NZ even count as international???)
The inlaws LOVE train travel and have done the Spirit of the Outback few times and are on the Sunlander at least once a year. We looked at doing the Outback with them one trip but without the pensioner discount it is REALLY dear.
Going further down the list
Both parents eat out ALL THE TIME. We regularly get answering machine because are out to dinner. Usually clubs because that is what they like to eat.
None of them are into "towers of no food" as my Dad calls "better" restaraunts.
Both mothers have overflowing pantries that we joke will feed us for years when we eventually have to clean out the house.
Both parents have less than 10year old cars that are regularly maintained. Because of the van, Dad has a pretty new Pajero and the inlaws have a Camry that might be 10years old but has less than 100k on the clock. It will get upgraded when it comes close to 100.
All drink bottled wine, bought beer, spirits, sherry and port.
Clothes, the men are men and don't really care
. The Mums just buy clothes and they wear them. The Mothers are both well dressed from Rockmans, Millers, Noni B etc so Reasonable clothes. (Altough neither woman was a "designer clothes" wearer)
Leisure - as previous, they are all out all the time.
Houses are both fully owned modern homes that are standard 4/2/2 and are in good condition. Neither house will need new kitchens or bathrooms in their lifetime.
Neither have health insurance and have not needed it. There has been some serious illness (1 cancer, 2 diabetics, 1 aortic aneurism op) and of course all have glasses. The public system has been FANTASTIC and none of us can complain about the quality or timeliness of treatment.
So all up I take these figures with a grain of salt.
Both my parents and my inlaws are retired. My parents are techincally in the "comfortable" category and just simply cannot spend it all. Inlaws are on pension only and live as well as we do, if not more social.
The thing that the "gurus" neglect to think of is peer groups.
If retires are surrounded by other high income retires who travel overseas often then yes they may need the higher figure.
My parents are in a caravan club so they travel quite extensively. They are not interested in international travel (apart from NZ where we have some family - does NZ even count as international???)
The inlaws LOVE train travel and have done the Spirit of the Outback few times and are on the Sunlander at least once a year. We looked at doing the Outback with them one trip but without the pensioner discount it is REALLY dear.
Going further down the list
Both parents eat out ALL THE TIME. We regularly get answering machine because are out to dinner. Usually clubs because that is what they like to eat.
None of them are into "towers of no food" as my Dad calls "better" restaraunts.
Both mothers have overflowing pantries that we joke will feed us for years when we eventually have to clean out the house.
Both parents have less than 10year old cars that are regularly maintained. Because of the van, Dad has a pretty new Pajero and the inlaws have a Camry that might be 10years old but has less than 100k on the clock. It will get upgraded when it comes close to 100.
All drink bottled wine, bought beer, spirits, sherry and port.
Clothes, the men are men and don't really care
. The Mums just buy clothes and they wear them. The Mothers are both well dressed from Rockmans, Millers, Noni B etc so Reasonable clothes. (Altough neither woman was a "designer clothes" wearer)Leisure - as previous, they are all out all the time.
Houses are both fully owned modern homes that are standard 4/2/2 and are in good condition. Neither house will need new kitchens or bathrooms in their lifetime.
Neither have health insurance and have not needed it. There has been some serious illness (1 cancer, 2 diabetics, 1 aortic aneurism op) and of course all have glasses. The public system has been FANTASTIC and none of us can complain about the quality or timeliness of treatment.
So all up I take these figures with a grain of salt.
Thanks HP, thought as much.
Ive been traking my spending pretty closely over the last couple of years using pocket book.
If I take out all my housing costs and one off expenses (engagement ring, eye surgery etc) I spent $59,500 in the last 12months.
Ok, so I don't live in Australia, however, I do holiday for 6months a year. Over the last 12 months I have been to Japan, Russia, Indonesia and Australia (twice) so not always cheap holidays.
I also don't live frugally.
I guess for 6months of the year I can live fairly cheaply, then for the other 6months it is fairly expensive. In some ways my lifestyle wouldn't be so different to living retired (I don't think).
So $58,000 should be ok to live off, provided you own your home, and have no debt. Though unless you want to live more frugally, your not putting much aside for a rainy day - or to replace a car/hip/carpet etc.
Blacky
If I take out all my housing costs and one off expenses (engagement ring, eye surgery etc) I spent $59,500 in the last 12months.
Ok, so I don't live in Australia, however, I do holiday for 6months a year. Over the last 12 months I have been to Japan, Russia, Indonesia and Australia (twice) so not always cheap holidays.
I also don't live frugally.
I guess for 6months of the year I can live fairly cheaply, then for the other 6months it is fairly expensive. In some ways my lifestyle wouldn't be so different to living retired (I don't think).
So $58,000 should be ok to live off, provided you own your home, and have no debt. Though unless you want to live more frugally, your not putting much aside for a rainy day - or to replace a car/hip/carpet etc.
Blacky
Overall cost of living is more. Transport, groceries, I'm pretty sure utilities too
Restaurants are not the same, they're more expensive in australia
You put very little faith in independent and unbiased stats? There are other sources out there that show similar results
For me personally 58k wouldn't be anywhere close to enough but that's also cost haven't had kids yet and don't intend to sacrifice much lifestyle wise when I "retire. I also want to continue making charitable contributions, currently it's over 20k/yr.
That being said though I don't ever see a point where I fully retire, I enjoy what I do too much. The goal is to have around 200k is largely passive income and that will give me freedom to undertake other ventures, financial and otherwise
On what basis do you make these statements? Have you lived in both countries for substantial periods of time, as I have, and therefore have relevant direct experience in such matters?
You need to add taxes (10-15%) and tip (15-20%)
Who says they are more expensive?
Whatever you can find here, there is a comparable there.
Every single metric out there says they are more expensive in australia vs USA for eating out, apart from the very top end of fine dining.
This is particularly true of middle of the road dining say your typical cafes etc which tend to be a fair bit higher in Australia
I think the onus is on you to show that overall they're about the same if you are the one insisting the stats are wrong
Certainly the salaries are often lower in America and an argument can be made for lifestyle being a lot better in Australia but on a pure cost of living basis there is no doubt which country is cheaper overall
Good for you...really.
You are an individual who puts a lot of value on consumerism.
I value my time and enjoy simple pleasures. I love my retirement, just the way it is. Better than I could have imagined.
Giving to charity is not on my to-do list.
I'd rather care for momma cats and their kittens for the SPCA as my charity.
That makes us feel good...I'd actually pay them, for allowing us to.
Here's another COL comparison website that also shows Australia's relatively high COL compared to the USA: http://www.budgetdirect.com.au/costofliving/ Well, that is if you don't pick New York City, which is a well known COL outlier in the USA.
In any case, even with our (arguably) higher COL in Australia, $58K would be plenty enough for me an the Mrs to live on in retirement, including OS holidays, replacement cars and what not.
In any case, even with our (arguably) higher COL in Australia, $58K would be plenty enough for me an the Mrs to live on in retirement, including OS holidays, replacement cars and what not.
We live in Australia 8 months of the year, and Canada 4 months of the year.
When in Australia, we travel around a lot, and food is reasonable anywhere we go.
Even in the Outback, sales abound.
I'm not sure your claim that I put a lot of value in consumerism has all that much merit
Then again we established a long time ago that you and I look at the world very differently.
The fact is though there is absolutely nothing out there to support your claim that overall it costs the same to live in Australia vs USA once housing costs are removed
So you haven't lived in the USA then? How do you know what the COL is there then?
