Retirement with little saved

[street]

Many people live off of SS alone with very little saved when retiring. Small town America didn't have jobs with pensions and the wage was not that good. People sacrificed a high paying job to live where they loved to be.

My parents retired on SS and a small amount saved. No debt their entire life just paid for what they had or did without.

We didn't have much, but we had it all. They were happy in life and enjoyed life to the fullest without much in retirement.

 

[rodi]

FIL was famous for bad financial decisions- including cashing out his union pension before retirement. (Didn't ask MIL - this predates the rules that require the spouse to sign off, or he forged her signature... family lore is vague on this.) MIL was already working as a clerk for the IRS and continued to save in TSP and made sure she worked long enough to qualify for the pension and federal retiree healthcare.

She was super frugal which helped offset FIL's lack of financial acuity.

He retired at 65, and she retired at 67... They had a paid off row house and probably 250k in savings. And I mean passbook savings, with some low interest paying ee bonds in the mix. Not a stock or mutual fund because MIL didn't trust the market.

They lived very comfortable on about $25k as recently as 10 years ago. (Paid off house, frugal genes.)

FIL died at age 90. MIL is still alive at age 95 and lives in a memory care unit near one of my BIL's. After FIL died, MIL's dementia worsened. Her house was sold for about $160k when MIL moved into memory care. Pension, small SS, small RMDs cover all but $4k of her monthly expenses. The $4k/month comes from her savings. But she's in the expensive time of retirement... LTC isn't cheap.

I think there are/were a lot of retirees who grew up in the depression who were very good at living good lives inexpensively.

 

[Teacher Terry]

This thread got me thinking about what’s been the most important thing in retirement and most of it is low cost or free. I enjoy walking my dogs, knitting, reading, volunteering, visiting family and friends, playing games with friends, going out with my meetup group to happy hour, etc. I also enjoy traveling and take a nice trip yearly. Most of my friends had professional careers but no one has lavish taste.

 

[Scuba]

My MIL has a nice pension, social security, and excellent healthcare coverage as a retirement benefit. She was a teacher. In addition to this, she has a portfolio she never draws on worth around $150K.

FIL is deceased. She rents a cute little house and pays $12K per year in rent. She’s quite frugal and at 85, she doesn’t drive or travel anymore. She has never lived an extravagant lifestyle and has always been grateful for what she has and generous to others in need. While she doesn’t have a big net worth, she’s super happy and loves her life. She doesn’t have LTC insurance, but her pension and SS are enough to cover assisted living. Dementia care is another story.

 

[livingalmostlarge]

I think it's hard to see what the pension is worth. She draws on SS since 62 and didn't bother to consider taking 1/2 of my dad's and letting hers ride. She's that sort of person who just does things impulsively with money.

I Guess so it's like she had a $1.5M pension and $1M medical saved up. But it's hard to see because it's not tangible like so many on here with multi 7 figure portfolios to generate the same amount of income.

 

[candrew]

I'm not very good at math or English. Is She 101? Did she retire at 56? Did she retire 25 years ago? Your point makes sense, just the numbers don't. Sorry. Not trying to be the math police. Just curious.

Thank you. I stand corrected. Yes, she did retire *25* years ago at age 66.

 

[5Miler]

My DM was long divorced and retired in 1992 at 62 years old. She had about $60K in savings and a monthly SS payment of under $500 while renting an apartment. I immediately moved her from Ohio to Georgia to live with me which she did until she passed 20 years later in 2012. There was no way she was financially prepared for retirement but she had to quit her waitress job due to constant pain. She tried for disability several times but the bar is high to get approved.

She wanted for nothing in retirement and constantly gave money to my sister and her five kids, finally leaving just over $100K in savings when she passed. Her BCBS Medigap plan F really made a difference for her as she had COPD and was a frequent flyer at the local hospital during her final years. She never had much money but she usually spent it wisely other than when she spent on my sister.

 

[pacergal]

Both sets of Grandparents retired with SS and about $10,000 saved. They survived fine. One set had a small travel trailer and visited family around the US before they settled in a very LCOL area. One lived in nice subsidized apartment and did fine.
If you have guaranteed income via SS and/or pension and that covers your expenses, you don't need to save a lot.

 

[Sue J]

My Dad retired at 59.5, my Mom never worked. In retirement they lived on SS and the earnings from his Trad IRA. Dad took his SS early at 62 and 2 years later she took her spousal benefit when she turned 62.

No mortgage, no debt, living in a medium cost of living area. They traveled nicely, some cruises and trips to Europe and South America. They lived very comfortably and did not have money worries.

After Mom died at age 83, Dad (85) moved to Assisted Living and that's the first time he ever lived above his means. I think it was around $4000-$4500/mo. After a few years he moved to a Hospice facility that was $6000/mo. He hated that he was spending more than his income but I told him he should be proud that he was supporting himself.

Before he died, I asked him what was the most he ever made while working and I think it was $110,000 to $120,000 and that was just the last few years before he retired, which would have been the early 1980's. I also asked him the most he ever had in investments and savings and he told me it was $350,000. He and I shared the same mindset on money and he liked that I was asking him these things.

When I took over his finances right before he went to Assisted Living his investments were around $300,000 and when he died 5 years later it was just over $100,000. Those last 5 years were expensive.

Overall I see him as an example of a successful retirement and later years. They were not "wealthy" in the classic sense but always lived below their means and saved and invested wisely.

Good Job, Dad!

 

[ncbill]

Father-in-law retired nearly 30 years ago with a COLA pension from his union job, a paid-off home, & maybe $50k saved.

Took SS at age 62, as did his wife & they then traveled for the next decade.

With retiree health insurance & LTC insurance from his job plus that pension & SS they'll be just fine.

 

[monte1022]

My Dad retired at 59.5, my Mom never worked. In retirement they lived on SS and the earnings from his Trad IRA. Dad took his SS early at 62 and 2 years later she took her spousal benefit when she turned 62.

No mortgage, no debt, living in a medium cost of living area. They traveled nicely, some cruises and trips to Europe and South America. They lived very comfortably and did not have money worries.

After Mom died at age 83, Dad (85) moved to Assisted Living and that's the first time he ever lived above his means. I think it was around $4000-$4500/mo. After a few years he moved to a Hospice facility that was $6000/mo. He hated that he was spending more than his income but I told him he should be proud that he was supporting himself.

Before he died, I asked him what was the most he ever made while working and I think it was $110,000 to $120,000 and that was just the last few years before he retired, which would have been the early 1980's. I also asked him the most he ever had in investments and savings and he told me it was $350,000. He and I shared the same mindset on money and he liked that I was asking him these things.

When I took over his finances right before he went to Assisted Living his investments were around $300,000 and when he died 5 years later it was just over $100,000. Those last 5 years were expensive.

Overall I see him as an example of a successful retirement and later years. They were not "wealthy" in the classic sense but always lived below their means and saved and invested wisely.

Good Job, Dad!

$120k/yr in 1980 is roughly equivalent to $413k/yr today per usinflationcalculator.com. If the $350k was at his retirement date then that equates to $1.2m. Thanks for the real life example. All info is helpful to those of us still in the planning/soon to FIRE stage.

 

[cyber888]

Today, almost no one has a pension, unless you work for the US govt. You have to plow and save into your 401K or IRA

 

[G-Man]

I’m blessed to be getting a pension at 60.

 

[Koolau]

Mom and dad had $250K (essentially in a bank) when they retired in the early 80s. Dad died in 1990 in memory care and mom died in memory care in 2000. They came out dead even (with mom using the last of her LTC policy and the last of her checking account.) They lived quite comfortably at home on SS. It wasn't until they needed LTC that things got dicey (we sold the house to fund mom, for instance.) All depends on the luck of the draw - health wise and parents spending habits. YMMV

 

[FindingForward]

This thread got me thinking about what’s been the most important thing in retirement and most of it is low cost or free. I enjoy walking my dogs, knitting, reading, volunteering, visiting family and friends, playing games with friends, going out with my meetup group to happy hour, etc. I also enjoy traveling and take a nice trip yearly. Most of my friends had professional careers but no one has lavish taste.

You make a good point about friends' lifestyles. Friends can really shape how satisfying or unsatisfying retirement life feels for those on more limited budgets. It's more relaxing if one has friends with similar modest tastes.

It can be an uncomfortable mismatch if friends tend to favor pricier restaurants, shows, more costly entertainment when getting together vs simpler, lower cost activities. It can make the person with a limited budget really feel like the annoying buzz kill in the group, always worried about the cost.

 

[Teacher Terry]

Finding forward, one new friend of mine was used to a lavish lifestyle being married to a military pilot who after retirement went to work for a airline. They divorced at 62 because of cheating and she is having a difficult time because her friends participate in much more expensive activities on a regular basis and she is trying to keep up. We met because we live in the same condo building. My kids make very good money but live like I do so we gather at homes for meals or go out to eat at nice reasonable places. A fancy restaurant is for special occasions.

 

[laurence]

I've went part time (24 hours a week) almost seven years ago, I have a goal of retiring in 7 years when I'm 54 1/2 but more and more I'm thinking of staying on longer and just letting DW retire as it's not a crushing workload. Probably only a year or two more as I have aspirations for open ended travel. But the mathematical benefit of the income at a senior principal engineer hourly rate is indisputable.

 

[Music Lover]

You make a good point about friends' lifestyles. Friends can really shape how satisfying or unsatisfying retirement life feels for those on more limited budgets. It's more relaxing if one has friends with similar modest tastes.

It can be an uncomfortable mismatch if friends tend to favor pricier restaurants, shows, more costly entertainment when getting together vs simpler, lower cost activities. It can make the person with a limited budget really feel like the annoying buzz kill in the group, always worried about the cost.

It certainly helps having friends with modest tastes, too.

I can't remember the last time we went to a pricey restaurant with people. We tend to meet at local inexpensive places for "wing night" or something similar. I think the last time we went out we had 2 drinks and a dozen wings each and the bill was about $30. I just met my golf foursome last week for lunch, my bill was $18.

We take turns with one couple having each other over for supper. A home cooked meal and a couple drinks is pretty inexpensive. And I just bought a pizza oven and am looking forward to making pizza for a small group. We can probably make 8 - 10 individual pizzas for $30 or so. What a fun way to spend an evening on the deck with friends.

 

[disneysteve]

It certainly helps having friends with modest tastes, too.



I think the last time we went out we had 2 drinks and a dozen wings each and the bill was about $30.

It helps to live in a LCOLA area too. Two drinks and two dozen wings would be more than $30 here. If you're talking soft drinks, probably just over $50 with tax and tip. If you're getting alcoholic drinks, closer to $70. And that's assuming you meant 2 drinks total, not 2/person.



Dining out has gotten super expensive thanks to inflation.

 

[Music Lover]

It helps to live in a LCOLA area too. Two drinks and two dozen wings would be more than $30 here. If you're talking soft drinks, probably just over $50 with tax and tip. If you're getting alcoholic drinks, closer to $70. And that's assuming you meant 2 drinks total, not 2/person.

2 beer each ($4 each), 24 wings (39 cents), plus tax just under $30. It was wing night and happy hour. At a different time the bill would have been $40 or so.

 

[disneysteve]

2 beer each ($4 each), 24 wings (39 cents), plus tax just under $30. It was wing night and happy hour. At a different time the bill would have been $40 or so.

Good deal. I love those happy hour specials or half price apps nights. Most of those went away with COVID but they're slowly starting to come back as restaurants begin to recover. I checked out two local places and an order of wings is $17 or $19, and I think that's for 10, not 12.

 

[daylatedollarshort]

We live in a HCOL are but there are still some restaurant deals, like happy hours and half price specials during slow times. Museums, concerts and plays have more bargains here than restaurants. There are still many deals at college, community theaters, Goldstar and the seat filler lists for fun evenings out at $0 to $20 a ticket. (I have to pay $10 a month for one of the seat filler lists and the other is free for vets.) Most of the big museums here have free days and cheap monthly special event nights. Like the local science museum usually has $5 event nights for members with lectures with speakers from places like NASA and Standford, telescope viewing, dancing with a DJ, films, modestly priced wine and treats in an outdoor cafe under the Redwoods, planetarium shows and lazerium shows.

Our libraries have free event tickets to around 50 cultural attractions, the museum and gardens have free days, the colleges often have free speakers and concerts, and many of the parks and beaches are free, the libraries have free classes and events so there is still always a lot to do even if one had a very low income household. Plus for retirees, the senior clubs are only $20 - $30 a year and most of the activities and lunches are free or very low cost.

 

[aja8888]

Good deal. I love those happy hour specials or half price apps nights. Most of those went away with COVID but they're slowly starting to come back as restaurants begin to recover. I checked out two local places and an order of wings is $17 or $19, and I think that's for 10, not 12.

Our local 19th Hole Pub that has been there for 30+ years and has the best wings in town, has a Thursday night wing special with $8 pitchers and $0.25 wings. Place is jam packed and to get a seat you have to be there by 6:30 PM. They also have a live band starting at 9:00 PM. We have been going there for 25+ years now. Lots of fun!

 

[zippy2020]

Widowed MIL had modest pension and SS, plus about $200K in combined her and late FIL savings. Company gave $250/mo to cost of her healthcare so basically 50/50 split. Thanks to two failed investments (with friends), most of their retirement savings were lost.

However, their home was in a desirable area and in great shape. Small second of $100K on it at low interest fixed rate. We urged her to sell - their old friends had almost all left the area already, due to death or moving into retirement facilities and communities.

We are in a HCOL area. We were concerned that she was house-rich and cash-poor. When she finally decided to sell, she cleared over $800K.

After living with us for seven years, we helped her move to a seniorcare facility, one of the top three in the state. Thanks to the house sale, the monthly cost of the facility - $4K/mo - was not a problem.

MIL had mild to moderate dementia. She died unexpectedly before it got worse, but at the time - 2015 - Memory Care was approx $8500/mo.

It's now in the $12-22K/mo. range, depending on what facility you select.

 

[street]

This thread got me thinking about what’s been the most important thing in retirement and most of it is low cost or free. I enjoy walking my dogs, knitting, reading, volunteering, visiting family and friends, playing games with friends, going out with my meetup group to happy hour, etc. I also enjoy traveling and take a nice trip yearly. Most of my friends had professional careers but no one has lavish taste.

I agree with almost all the things I have a passion for in life is free or very little money has to be spent. I can be happy just exploring the outdoors and doing my hunting, fishing and hiking year around.