Retiring on $60k/year
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Anonymous
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I am 63 and I am planning to retire in a couple of years. I will be retiring with $30k/year sate pension and $30k/year social security. I don't own a home and currently rent. I do not have any debts. I will have about $75k in cash (emergency fund)
Unfortunately, I never invested. So I do not have IRA or other kind of brokerage accounts. My rent is about $1800/month. A few months ago I was confident I could live a simple life with $60k/year. However, I'll admit the chaos and scaremongering unleashed upon us is making me think whether I should rethink my plan to retire. For the first time in my life I am not optimistic about the future. I would love to work longer but I am not in the best of health Do you know people who are retiring comfortably with anout $60k year? My divorce a few years ago really derailed my retirement plan, but such is life. |
Anonymous
| That sounds awfully tight to be honest. After tax and whatnot, 60k is only about 45k. That will be tight |
Anonymous
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what is your monthly/yearly expenditure now? can you reduce it?
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Anonymous
| If you can wait until 70 to draw social security (by saving as much as you can until you stop working and using that, pension, and other savings until 70) you will get a lot more than if you claim it at 67 or earlier. Also are you eligible for social security on your ex's work history? It might be higher than yours. |
Anonymous
OP here. About $42k per year. Yes I am looking for ways to resuce it. I also started delivering food during weekends and some weeknights. So that should give me further breathing room. And I am also addressing my health issues because I think I will have to work forever. I don't think I will be able to retire. As people have said, it's very tight. |
Anonymous
+1. This is a good strategy. |
Anonymous
With 15% self employment tax, income tax, and gas, delivering uber eats isn't a very good gig unfortunately. maybe a PT job might be brtter |
Anonymous
| Can find a roomie in a similar situation? |
Anonymous
| How long were you married ? |
Anonymous
| so for your sake i’m assuming you will wait until full retirement age? I think you can retire in that, but you might need to be prepared to have some sort of small PT job on the side. My main concern for you would be you being at the mercy of rent increases for the next 20+ years. |
Anonymous
| My mom lives on about 35K a year as is doing great (she even saves a lot of this), but she owns her small home. It would worry me to at the mercy of a landlord. I'd try to build up my savings a little more if possible. |
Anonymous
| Do you live in a place that doesn't tax retirement income? |
Anonymous
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I think you should work until at least 67 (if not 70) and increase your cash cushion at the very least. What if you need a root canal? What if your car breaks down? What if your things are damaged in a flood or a fire?
Working a bit longer will also allow pump up your social security. It's also not too late to invest. You could have 4-7 years to buy ibonds, t-bills, or something safe like that. Any chance of a inheritance? |
Anonymous
I think it is a more than that. You won’t pay ss taxes etc. |
Anonymous
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You can draw on your former spouse's social security if it's higher than yours. Look into that.
Also, look into subsidized senior housing. I did that for my mom and there was a lot available. |