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I am currently 32 years old and am revisiting my retirement savings strategy. I am gay, single and plan to never have a family. I don't ever want children. I may end up getting married to another guy at some point, who knows? But that's it. For now, let's just assume I'm going to remain single forever, and into retirement as well.
With that said, do you think a single person can live comfortably off $32K per year during retirement (that's a gross income of about $2,700 a month)? This is in TODAY'S dollars, for purposes of this discussion.
I do not care about early retirement or traveling or buying a nice house when I'm retired. I just want to live average and I'm happy with that. I would certainly be willing to relocate to a low cost area, if necessary. And there's a strong likelihood that I could have no housing payment by the time I'm retired, which helps.
If it is indeed comfortable to live off $32K during retirement, then I may consider reducing the amount of money I contribute to retirement from my paycheck, because right now I am on track to having $54K a year during retirement, which I'm starting to think is overkill for a single retiree.
Thoughts?
Work on becoming as self-sufficient as possible. Buy land, learn to garden or farm, buy a tractor. Grow your own food, raise your own animals. Look at solar for your basic electricity needs. Look at self-sufficeincy as a way to reduce your expenditures for necessities. You can do it. Lots of people already have. And yes, 32K is very do-able for retirement, for your vision of life.
He did state $32k in todays dollars. So inflation adjusted. There is just way way too much I still want to do. And I lived and did plenty most of my life. I will never just sit and watch the world go by with a drink in my hand. Never. So to each their own.
I'm really surprised at how many retirees (especially with so many topics pointing it out) equate having just enought to live on in their early years of retirement, (without an adequate nest egg to draw on in addition to their fixed income; LIVING on $32k a year is doable. as long as you have additional funds saved for what life throws at you when $32k is NOT enough) because it was the same as they made while they went through their adult lives, as being "perfectly adequate" through the end !!! And I'm not talking about extra for "choices "; I'm talking about enough so that you have a far higher level than of Medicaid poverty LTC in the final years.
Is it the same head in the sand mentality that prevented them from saving enough for retirement? Or is it a no ambition to aim higher? A faith that the government will take care of you even though SS was always meant to only provide about roughly 40% of your retirement income? I always knew there was a percentage of people with a que sera sera attitude grasshopper mentality or a percentage that absolutely had no choice, but its not like articles about the consequences of not being an ant to an extent and living wbym and building enough for handling SOME future unknown costs aren't everywhere. I just don't get how so many intentionally decide to stop working because they just don't want to anymore and they will have just enough to live on....
Is one going to be a self sufficient farmer on their own at 80? Do they really believe that "enough" at 62 will actually be enough at 85? I really cant understand that mindset.
Last edited by Perryinva; 08-29-2016 at 07:18 AM..
I spend a little over 20 k a year. PAid for house, newer used Prius, fly at least once a year to see family, have tickets to community concert and playhouse, eat out several times a month, regularly go to movies etc. I do live in a supposedly low cost living area, but groceries especially seem closer to costs of friends in HCOL areas, I think there is less and less of a gap between low and high cost of living areas. Our property tax basis is higher than a sibling who lives in a hcol area for instance.
He did state $32k in todays dollars. So inflation adjusted. There is just way way too much I still want to do. And I lived and did plenty most of my life. I will never just sit and watch the world go by with a drink in my hand. Never. So to each their own.
I'm really surprised at how many retirees (especially with so many topics pointing it out) equate having just enought to live on in their early years of retirement, (without an adequate nest egg to draw on in addition to their fixed income; LIVING on $32k a year is doable. as long as you have additional funds saved for what life throws at you when $32k is NOT enough) because it was the same as they made while they went through their adult lives, as being "perfectly adequate" through the end !!! And I'm not talking about extra for "choices "; I'm talking about enough so that you have a far higher level than of Medicaid poverty LTC in the final years.
Is it the same head in the sand mentality that prevented them from saving enough for retirement? Or is it a no ambition to aim higher? A faith that the government will take care of you even though SS was always meant to only provide about roughly 40% of your retirement income? I always knew there was a percentage of people with a que sera sera attitude grasshopper mentality or a percentage that absolutely had no choice, but its not like articles about the consequences of not being an ant to an extent and living wbym and building enough for handling SOME future unknown costs aren't everywhere. I just don't get how so many intentionally decide to stop working because they just don't want to anymore and they will have just enough to live on....
Is one going to be a self sufficient farmer on their own at 80? Do they really believe that "enough" at 62 will actually be enough at 85? I really cant understand that mindset.
Even chained to the CPI, it may very well be a decline in the standard of living depending on what goes up, by how much, and one's spending.
Another thing to consider is that even if you technically could live off of 32K, it might be highly demoralizing to do so.. imagine if when you retire you have to sell off your car and move to a smaller apartment, and basically spend the rest of your life that way. Before, you're taking nice vacations, and after retirement you can do very little of that. Also your health coverage might become worse under your new income, and your health problems would likely to increase. In other words, the issue might not be "can a single person live off of" but rather "would a single person be willing to live off of"
Bottom line, it's probably not doable if you aren't willing to live frugally but it sounds like you are if you are willing to move to a cheaper area. If you tend to live like the average materialistic and spend spend spend American, then no. If you're not willing to ditch the expensive $2500 a year cable TV bill, the expensive multiple devices costing you $2500 a year, frequently eating out at pricey restaurants, spend spend spend on various doodads and doohickeys, travelling frequently, need to upgrade your appliances all the time--then no, I don't think you can retire on that. No way. And IMO, in that case, why stop working? If someone likes the finer things of life, so what, just keep working. Then you can afford all that stuff.
Personally IMO, retirement is more important to me than fancy appliances or lots of getaway weekends. I would rather live simply and frugally and enjoy every day life in simple ways--be able to go for walks, sit on my porch with coffee, work on meaningful projects, volunteer. That said, I'm planning to retire on a lot less than $32,000, and I don't live in a cheap location either. My neighborhood is not in the upscale part of town. I think you can always find a cheaper neighborhood to live in near your home town without moving out of state. For instance, there are very pricey $450K active adult communities within a mile of me and also there are some very modest, affordable, retirement apartments.
To me, the amount of money one needs in retirements pretty much depends on what someone is willing to give up in order to retire. Except for the wealthy, I don't see that retirement is meant to provide the same level of lifestyle that one has while working. Retirement is meant to give people a different outlook on life and meant to be a time of getting off the "work to spend" treadmill.
Another thing to consider is that even if you technically could live off of 32K, it might be highly demoralizing to do so.
"even if you technically could live off of 32K"
I earn $17,760/year. We live in a town where the average household income is $20k/year.
Our children are grown and we own our house [arguably the largest and highest value house in our township].
People do support families on $25k/year in our town.
There is no "even if you technically could live off of 32K".
You rich folk are slamming a lot of other people with your rich attitudes.
Quote:
... imagine if when you retire you have to sell off your car and move to a smaller apartment, and basically spend the rest of your life that way. Before, you're taking nice vacations, and after retirement you can do very little of that. Also your health coverage might become worse under your new income, and your health problems would likely to increase. In other words, the issue might not be "can a single person live off of" but rather "would a single person be willing to live off of"
When I retired we were able to move away from high COL areas, out to a low COL area. We moved out from an apartment, into a 4800 sq ft house on 150 acres with 1/4 mile river frontage.
I earn $17,760/year. We live in a town where the average household income is $20k/year.
Our children are grown and we own our house [arguably the largest and highest value house in our township].
People do support families on $25k/year in our town.
There is no "even if you technically could live off of 32K".
You rich folk are slamming a lot of other people with your rich attitudes.
When I retired we were able to move away from high COL areas, out to a low COL area. We moved out from an apartment, into a 4800 sq ft house on 150 acres with 1/4 mile river frontage.
"You rich folk are slamming a lot of other people with your rich attitudes."
It's not about being, rich. It's about the cost of living. In Chicago, where I live, simply owning a car is expensive, as is rent. 32K would force you to choose between moving into a dangerous neighborhood, a tiny apartment, or giving up your vehicle.
"When I retired we were able to move away from high COL areas, out to a low COL area. We moved out from an apartment, into a 4800 sq ft house on 150 acres with 1/4 mile river frontage."
If you like that, great. But for city-lovers that would be considered highly undesirable, regardless of your income.
"You rich folk are slamming a lot of other people with your rich attitudes."
It's not about being, rich. It's about the cost of living. In Chicago, where I live, simply owning a car is expensive, as is rent. 32K would force you to choose between moving into a dangerous neighborhood, a tiny apartment, or giving up your vehicle.
"When I retired we were able to move away from high COL areas, out to a low COL area. We moved out from an apartment, into a 4800 sq ft house on 150 acres with 1/4 mile river frontage."
If you like that, great. But for city-lovers that would be considered highly undesirable, regardless of your income.
I am well aware that there are specific areas of high COL. I have lived in high COL area before.
The majority of the nation is not such. If you randomly toss a dart at the map you will likely land on a spot of low COL.
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