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It's expensive to live solo in retirement, as you are only depending on one SS income and one retirement savings account. If you share the costs with a partner, it's more cost effective. Two can live more cheaply than one if on a budget. I think many people will find shared living situations in later life for economical reasons, especially those of us with modest retirement incomes. I'm not interested in structured, golf-oriented retirement communities, but I could see myself living with someone in retirement to share expenses and to have the company. Also, a solo female in retirement can be risky in terms of safety, and having more people around is better in that regard.
I agree with everything in that post!
Also, I adjusted my budget/spending approximately five years prior to retiring by using a monthly income based upon the guesstimated amount my future s/s check. Not only did this aid in me saving the majority of my paycheck, it also eliminated the shock of no paycheck when I did retire.
I am able to live comfortably on my s/s and never feel as though I'm sacrificing anything - my retirement is everything, and more, than I anticipated.
It's expensive to live solo in retirement ... I could see myself living with someone in retirement to share expenses and to have the company. Also, a solo female in retirement can be risky in terms of safety, and having more people around is better in that regard.
The Golden Girls is what comes to mind when I read your comments. I think many of us single baby boomers will be sharing, out of necessity.
Retiring on March 30th. I figured out what seemed like a bare-bones budget with a paid-off house and no significant expenses other than $1,043 a month for health insurance, and it came to $42K, which is about $26K less than my actual retirement income. I'm going into "frugal mode" for six months and am going to track my actual spending very closely, but I can't imagine that the reality will be much less than around $40K even in one of the cheapest places in Arizona (Winslow).
... I figured out what seemed like a bare-bones budget with a paid-off house and no significant expenses other than $1,043 a month for health insurance, and it came to $42K
That is nearly double the average household income in some parts of the USA. You will do just fine.
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... I can't imagine that the reality will be much less than around $40K even in one of the cheapest places in Arizona (Winslow).
In Arizona I need $32,000 in San Francisco I needed $60,000, there are probably places where I could do under $32,000 but these are based on experience
That is nearly double the average household income in some parts of the USA. You will do just fine.
I had no idea that Arizona was so expensive.
Well, when you consider that income taxes run in the neighborhood of $8K, health insurance exceeds $12K, and one does actually have to eat, put gas in the car, repair the roof when it leaks and pay the utilities, property taxes, car insurance, etc., those who claim to live on substantially less than $40K must be eating sand and living in tents. $42K was my "bare bones" budget; since I do play a fair amount of golf and whatnot, I'm thinking the reality will be more like $55K, but we'll see.
Retire with as much as you can. Retire with no debts. I'm not retired but I have seen and have contact with people who are retired and I have never heard anyone say they retired with too much money but I have heard people say they didn't have enough.
Retire with as much as you can. Retire with no debts. I'm not retired but I have seen and have contact with people who are retired and I have never heard anyone say they retired with too much money but I have heard people say they didn't have enough.
Yes, unless you are what most of us would call wealthy, I do think "no debts" is the key. I made "no debts" my priority about ten years ago. If one has a paid-off roof over one's head and truly has no debts, one can at least "survive" on a really minimal income. When I say a "bare bones" budget of $42K, I'm not talking about "survival" but about a life that is at least some semblance of a "retirement." If I thought what awaited me was "survival," I'd keep working.
I realize I'm posting late to the game, but wanted to add my thoughts on retirement. I think a person can live on very little income if they have the mindset. In the 80's I went from $17.00 an hour(union job) to $4.98 an hour with 2 kids, a mortgage, and everything else that comes with a family. Luckily, we had a little land, and raised what what we could to eat. I took any side jobs I could find, and we made it. I was finally able to retire in 2008, and my wife and I are doing allright on $24k a year. I think a person can live a good life on little if they have the mindset to do it. My Dad came from the depression era, and was frugal his whole life, and I suppose it influenced my thinking. True, these days are different than the 80's, but the principle is still the same.
I agree that it's a mindset, but times have changed dramatically. Housing costs are far too high relative to income, and health insurance is just not affordable to buy out of pocket. Some of us choose to live modestly, but if you are living with someone else, and sharing fixed costs such as housing, utilities and sharing food costs, it's much cheaper than doing that solo. If you own a home with a paid off mortgage in retirement, and are in a low property tax area, you have an advantage. If you have employer based health insurance, that's a huge advantage.
At the other end of the scale, if you have no resources at all, no savings, you qualify for medicaid and food stamps. Those of us with a few resources and some savings and living solo, find it very expensive without a paid off home. I see myself looking for a low cost area for retirement as a solo retiree, and also a place where Medicare supplemental plans are lower cost. Utilities can be a problem too, if you live where it's hot in the summer and need a lot of AC, or where it's a cold winter and need a lot of heating. I live quite modestly, but I see costs going up all the time. My car insurance has risen 10% per year since 2009 with NO change in my credit, NO accidents, NO tickets. I changed companies, and it went up another 5% after 6 months. Where does it end? I'll have to lower my liability limits to lower the premium next time around when it renews. My BCBS health insurance premiums have risen 15% since 2009, and that's for a high deductible ($5000) policy with no claims. I have zero debts and have never carried a credit card balance in my life.
Retirees on fixed incomes simply cannot absorb constant increases in costs of living. Anyway, it's huge challenge and I see myself sharing a living situation at some point in retirement for economic reasons.
Last edited by xz2y; 02-16-2012 at 05:55 PM..
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