Evening star., 1961-07-27
By THOMAS COLLINS

There's a good bit of non
sense in circulation again
about how much money you
need for retirement.
Some of it stems from a
United States Labor Depart
ment report of several
months ago which showed
that a retired couple needed
1920 to $3.50 a month to live
adequately in an urban area.
The figures probably were
correct, insofar as they re-
flected the answers a given
number of retired people gave
to a QUESTIONABLE. But these
figures and those from else
where which set up the cost
of living after IS seldom re-
fleet the wide range of liv-
ing arrangements that is pos
Sible in retirement.
The range is perhaps wider
in retirement than in any
other age of life. Therefore
budget needs vary more.
Retired couples can-and
do-live Splendidly on less
than 5000 a month in urban
areas, and they can-and do
live miserably on $500 a
month. It's because special
circumstances that seldom
apply along the way do apply
in retirement.
Here, from two readers
willing to reveal their fl
nanceS, are two extreme ex-
amples of retirement budgets.
And the lesson you can get
from them is not that one
or the other is the right
budget for you, but that no.
body's budget is. Retirement
Is a time for free-swinging,
uninhibited decision-and a
use of the wits.
This Plan Works .
The retirement budget of
Mr.. and Mrs. j. r. K: .
Mrs. K. had been a close
friend of a bankers wife for
many years. The banker
died, leaving the widow and
one son who was a career
officer in the Army. He also
left a fine brick house in
the suburbs where the widow
lived.
The widow wanted to stay
on. But she felt inadequate
to maintain the property. She
felt she could not afford to
hire people to do everything
and she didn't want to live
alone. She invited the KS
to take over the upstairs and
share the kitchen and yard
jointly all free in ex-
change for Mr.. K. taking
over responsibility for main
tenance.
This was to include yard.
flowers, routine repairs and
the other jobs a husband nor
mally does around the house.
Nothing more menial than
this, and no outlayS of cash
for substantial things as new
cutters, furnace and such.
Since equal social status
prevailed with the widow and
the KS, the arrangement
from the start was one of
closeneSS. There were eve
nings together watching TV
in the downstairs living room,
joint social affairs, trips to-
gether and eventually all
meals together-these were
natural.
So, in time, was Mr.. KS
project to develop a large
vegetable garden at the back
of the lawn, his proposal to
start buying meat in whole
sale lots and their joint buy
ing of a freezer for the base
mental of which consider
ably reduced food costs for
the trio.
On the average, Mr.. and
Mrs. K. are spending less
than $140 a month for fine
housing and good food. And
they are living the lives of
bankers. 1t is possible be-
cause of their age and be-
cause they are retired. There
would be a stigma attached
to it at any other period of
life.
This Plan Fails
The retirement budget of
Mr.. and Mrs. T. J. B.:
Mr.. B. had been a sales
executive. The expense
account way of life he and
his wife had become accus-
toned to, with social activ-
tiles and many friends, did
not fit comfortably into the
$540-a-month retirement in
come they had. Still, this
was the only life they knew
and they liked it. They tried
to tailor it.
:. The $6,480 yearly income
was budgeted this way:
$1,000 for taxes.
- $3.50 house upkeep includ-
Ing insurance, etc..
= 5000 private club dues (the
one clubsout of three Mr.. B.
insisted on hoiding).
$240 club tabs twhy belong
if you can't patronize the bar
~nd dining room?).
$500 for luncheons, con-
tributions. assessments, etc,
in social-charity organiza-
tions where Mrs. B. was
active.
5000 for clothes fyou can't
n ,s -.