Maybe move to an area that doesn't tax pensions and/or SS. Also, find a cheaper place to rent in the meantime. Any friends that you could rent a room from for a few years?

The rent is another factor that could change. That will only go up yet your pension and SS probably won't go up in relation to that.

If it were me, I'd focus the next several years on saving 50% of my salary. I'd cut anything I didn't need--subscriptions, clothing, home decorations, fancy foods, etc--so that I could do it. Also focus on living on $45,000 (the 60K minus your taxes) the next few years to see if you can really do it.

I'd also look into those food giveaways they have at churches when the time comes.

Anonymous wrote:It is not that bad for one person, DH and I are planning to retire on 120k per year

That’s significantly more than 60 though

It is not that bad for one person, DH and I are planning to retire on 120k per year

OP, I made $40k only once during my working career living in DC. I retired at 46 which was last year. Every dollar I ever made, I still have it.
It's not how much you make, it's what you make with the money you bring home.
Absolutely start taking SS at 62 and prioritize your health.
Is there a reason you cannot open a Roth now and max it out for 2024 and for 2025? Roth doubles as your emergency fund. You seem to have the cash.
This rental of yours needs to stay at $1800 and below and I think it can be done.
Think about dog sitting or some very part time job ca $10-$15k is plenty. You can continue adding money to Roth.
The fear will disappear when you start investing on your own into Roth. You will learn so much.
Put your health first, retire when you planned.
It will be ok, but you have to master your money.

I recently helped a family member in a similar situation find a condo to purchase. It took over a year, getting on the waiting list for multiple low income apartments and condos in 2 different states. There are many nice apartment and condo buildings that have one or 2 low income units. This family member was able to buy a one-bedroom unit in a nice complex (pool and tennis courts) for $95k, with $200/mo HOA. It is a relief knowing they will have a home they can afford on social security. Just something to consider.

Anonymous wrote:

Anonymous wrote:That sounds awfully tight to be honest. After tax and whatnot, 60k is only about 45k. That will be tight

I think it is a more than that. You won’t pay ss taxes etc.

You don't pay FICA, but an individual's income is above $44k per year, 85% of SS is taxable, and the pension is fully taxable, so federal income tax would be about $7,000. State taxes will vary widely. Some states don't tax pension income but others do (DC, for example, taxes non SS/non government pensions). Medicare Part B is $2,200 a year, and that's before any Medigap policy (which would be important for someone with very little emergency fund). Net would be a little more than $45k (depending on the state) but not by much.

Anonymous wrote:OP's situation is a reminder that we do have a retirement crisis in this country. The media loves talking about 401k averages, the government rather not talk about her people, and wealthy people pretend they don't exist.

The reality is with the rise of grey divorce and the fact that a lot of people don't really make enough, a lot of people are not going to be able to retire. It sucks.

Absolutely. I think seniors need to move in with their adult children if at all possible.

Keep working as long as possible. Even if you pick up a part time job working at a retail shop in your retirement. My mother did it with less (her pension & SS was about $40k a year). Her expenses were low, but rent was similar to yours. She always ran out money.

This is a fairly simple issue. You just need to have expenses which are less than your annual income, recognizing that while your income may remain relatively constant, your expenses may not. That is, you need to be prepared for unplanned and irregular expenses, like a replacement car or a need for long-term care. So the answer to your question about continuing to work depends on how much larger your emergency fund should be, and on the lifestyle you want in retirement.

You may also benefit from considering lifestyle changes, such as relocating to a much lower cost of living area where your income will go farther and/or will allow you to build up additional savings and investments for your later years.

Prioritize your health and keep working if those two don't majorly conflict with each other.

Is social security still going to exist given all the mayhem going on? I’m not factoring it in my calculations.

Anonymous wrote:OP's situation is a reminder that we do have a retirement crisis in this country. The media loves talking about 401k averages, the government rather not talk about her people, and wealthy people pretend they don't exist.

The reality is with the rise of grey divorce and the fact that a lot of people don't really make enough, a lot of people are not going to be able to retire. It sucks.

There will always be people who don't save. That's we have Social Security as a safety net. But when the "retirement age" was set at 62, there weren't nearly so many people living into their upper 80's and into their 90's. Saving enough money for an 8-10 year retirement is completely different from saving enough for 30 years during a 40 year working career, especially if it's a family with a SAHM. One person has 40 years to make enough for two people to retire for 25-30 years each, so basically a total of 50-60 years. Especially considering that older people are healthier these days, it is reasonable for the retirement age to be higher. People were never promised that they'd have a 30 year retirement, it just happened that it worked out that way for some people.

Here's a social security administration article on drawing on your former spouse's social security:
https://blog.ssa.gov/ex-spouse-benefits-and-how-they-affect-you/

OP's situation is a reminder that we do have a retirement crisis in this country. The media loves talking about 401k averages, the government rather not talk about her people, and wealthy people pretend they don't exist.

The reality is with the rise of grey divorce and the fact that a lot of people don't really make enough, a lot of people are not going to be able to retire. It sucks.