There seem to be a lot of folks who live on $30K or less who are under 65 who have no health insurance, no life insurance, no LTC incurance (assuming they are somewhere over 50 or so).
I am 59, single, still employed, living on less than $16K/yr (actually, $9.6K and the rest has gone for emergencies and unusual large expenses, replacement of big ticket items, and so on).
I have health insurance through my job, and will qualify for the same group health insurance for my entire life by the time I retire, at the same rate that employees pay (currently around $151/mo). I didn't count that in these figures, so that would bring my expenses up to around $17.5K including the emergencies and unusual expenses and such.
I have no life insurance, and no need for any.
I plan to self-insure for LTC; my SWR will be quite low, and much of my nestegg will be just sitting there growing from now on.
There is also talk of keeping cars forever, not budgeting for any emergencies and such. To me, that's living on the edge of disaster, not being remotely comfortable knowing that one major expense would put things over the edge.
Not from me. My present Toyota Camry Solara will be 10 years old and will have about 45,000 miles on it when I trade it in on another brand new one. That will be in early 2010, right after ER. I don't think 45,000 miles is excessive for such a car. The new car will last me through the first, most critical 10 years of ER. I will probably put less mileage on it per year, since I won't be driving back and forth to work. How can I be putting such low mileage on my car? By planning in advance. I considered the distance to work when I chose my house. A long commute is essentially extra time at work that you pay for, though gas and automobile wear and tear. Likewise, I am planning to buy my ER home close to town, and commerce, so that I don't have to drive forever just to get groceries and could even walk where I need to go.
I always keep enough emergency cash to buy a new car in cash. In ER, I plan to keep that much plus more to deal with other emergencies, should they happen simultaneously.
After all, I'm not living on $16K of my take-home pay prior to ER because I have to. I make a rather hefty salary and the rest goes into savings and investments.
Sure, some may say they have $500K in the bank, but why live a lifestyle that denies yourself things? Where do people think the money is going to end up? You certainly can't take it with you. And what happens if you have severe problems later in life - go on medicaid? Ever been in a medicaid facility?
In Walden, Thoreau said,
"My greatest skill has been to want but little." Some of us really do not feel that we deny ourselves anything. I don't want to end up in a medicaid facility, and I can't take it with me, so I will think about spending it on a luxury, resident-managed continous care facility such as my mother lived in for the past quarter century, and died in. They tended to her every want and need, and treated her with dignity and compassion.
If it's all in the house, how do you get at it??
A similar argument could be used to justify renting, like Ha does. That would give a person a lot of flexibility about where to live, too. It's a perfect decision for some, though not all, of us.
But as far as paying off a house goes - - all I can say is that it sounds pretty difficult to live on $30K/year if you have to have the purchase price of your house in your checking account, ready to spend (on mortgage payments, and other things that you want to buy, I suppose). It might be easier just to pay it off and get a HELOC before you retire, that you don't plan to use, or else to retire on enough $$ that the money in the house is irrelevant. Each to his/her own, and good arguments have been made for paying off the mortgage, not paying it off, and renting. That sort of thing has to be decided depending on your individual situation.
Personally, when I was paying for my house the P&I was $798/mo, so even with the regular monthly house payments included I was living on less than $30K. That varies regionally, a whole lot, though, as do your other expenses. That's one of several reasons why a specific dollar amount is of questionable value.