Anonymous wrote: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.

Same for my mom. It’s the increase in rent I’d worry about for the OP. Maybe look into renting a room to lower monthly costs.

You should move to a lower cost of living area where the rent is $1000. Since you'll be retired, work won't be tying you down to a place anymore. Then do some volunteering, or a part time job, to make friends.

It’s definitely possible. My parents live on their SS checks and a small pension. They’ve been retired 20 years and haven’t touched investments. They even don’t spend the full fixed income most years which is maybe 45kish. But they do own their home in a Low cost area.

They don’t do much money wise, mostly hang with family, gym, and prefer to eat at home. They even give my kids money because of mandatory withdrawals now (I tell them to stop and spend on themselves but they say they really don’t want/need it). Simple life, especially once they passed their early 70s.

Move to a place with rent control or at least, where rent increases are capped. OR, retire in a lower cost country like Portugal or Mexico.

Definitely get on a waitlist for senior housing. In Montgomery county I believe they can be as low as $200/month for low income seniors in a nice clean 1 bedroom.

I’m a laid off contractor who wasn’t planning on retiring for a while longer, but I doubt I’ll be able to get another job. So this is about what I’m going to have to retire on. I don’t have a pension, but have some savings and consulting work. Plus, my house will be paid off soon. It is what it is. I’ve always been fairly frugal and am just hoping the stock market doesn’t crash.

Anonymous wrote:

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.

Several seniors I know today don’t have children, so this isn’t an option.

Anonymous wrote:

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

Agree. That COL expenses for a couple are not double that of a single person. For example, housing: if PP and spouse were living in OP’s apartment, the rent would be the same as OP’s.

Op needs to keep working for a long time. There is no other answer.

Op definitely should have a plan if rent increases or health fails.

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.