Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Hard for a single to live on 40K + SS?
Old 02-26-2020, 08:20 PM   #1
Recycles dryer sheets
 
Join Date: Aug 2017
Posts: 347
Hard for a single to live on 40K + SS?

Is that unrealistic if you assume paid for house, health insurance covered and separate emer fund for things like new roof? Still tracking my spending while w*rking to determine a good number for me personally as I can't leave until I meet the "magic" age for benefits anyway. But I look at figures and go oh that won't work and then like but wait you won't have this or that expense. .
__________________

badatmath is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-26-2020, 08:23 PM   #2
Dryer sheet aficionado
 
Join Date: Feb 2012
Location: vinton
Posts: 44
Depends on where you live and what kind of lifestyle you expect to live. We live on less than that comfortably. We vacation twice a year but own our house and both our cars.
__________________

mckittri2000 is offline   Reply With Quote
Old 02-26-2020, 08:48 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Jul 2007
Posts: 1,150
It would be very easy in the Midwest.
FANOFJESUS is online now   Reply With Quote
Old 02-26-2020, 09:58 PM   #4
Recycles dryer sheets
 
Join Date: Aug 2017
Posts: 347
I guess I was assuming run of the mill hobbies/vacations and no special effort to save money by like never using the A/C all summer. . . .I suppose we all have different idea of that though too.
badatmath is online now   Reply With Quote
Old 02-26-2020, 10:13 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2009
Posts: 5,429
I live quite comfortably on less than $30k, without SS, and having to pay for my own HI (I am getting an ACA subsidy again after failing to get one for the last 3 years). I live in a HCOL, too. I am 56 and own my own place, an apartment in a large co-op complex. I have been retired for the last 11 years.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Old 02-26-2020, 10:59 PM   #6
Dryer sheet aficionado
 
Join Date: Oct 2019
Location: Los Angeles
Posts: 29
Seeing that I only retired last month and haven't road tested my retirement plan. . . but I pulled the trigger once I got all my expenses down in the 38k range and I have 7 more years before I take SS at FRA and I live in a HCOL
Out_the_Door is offline   Reply With Quote
Old 02-26-2020, 11:08 PM   #7
Thinks s/he gets paid by the post
Katsmeow's Avatar
 
Join Date: Jul 2009
Location: NE Tarrant County
Posts: 4,332
Quote:
Originally Posted by badatmath View Post
Is that unrealistic if you assume paid for house, health insurance covered and separate emer fund for things like new roof? Still tracking my spending while w*rking to determine a good number for me personally as I can't leave until I meet the "magic" age for benefits anyway. But I look at figures and go oh that won't work and then like but wait you won't have this or that expense. .
Plenty of people live on $40k including SS let alone without it. Just depends on lifestyle....
Katsmeow is offline   Reply With Quote
Old 02-26-2020, 11:24 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 8,709
Quote:
Originally Posted by badatmath View Post
I guess I was assuming run of the mill hobbies/vacations and no special effort to save money by like never using the A/C all summer. . . .I suppose we all have different idea of that though too.
You need A/C in Alaska ??
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is online now   Reply With Quote
Old 02-26-2020, 11:53 PM   #9
Moderator
Jerry1's Avatar
 
Join Date: Nov 2014
Posts: 3,813
Quote:
Originally Posted by badatmath View Post
but wait you won't have this or that expense. .
This is indeed I difficult part of estimating retirement expenses - you have to figure out what expenses you will no longer have. Of course, you also have to figure out what new expenses you will have. Thatís why itís important to get a good handle on your current expenses before you retire. Given that you have to wait for the magic age, Iím assuming youíll have a few years to get a firm handle on your expenses.

The seat of the pants method is to assume that youíll spend as much in retirement as you do working.

As to your question, thereís no way for us to answer. Iíve been amazed at how inexpensively some of the members on this board live. And, I donít get the impression any of them are eating cat food to do it. Theyíre focused and theyíre comfortable with their lifestyle.
__________________
Every day when I open my eyes now it feels like a Saturday - David Gray
Jerry1 is online now   Reply With Quote
Old 02-27-2020, 12:03 AM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 6,745
You can check out the Consumer Expenditure Survey to see what expenses are for consumers in general in the U.S., broken down by all sorts of categories: https://www.bls.gov/cex/tables.htm
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is online now   Reply With Quote
Old 02-27-2020, 12:19 AM   #11
Thinks s/he gets paid by the post
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 4,117
From all the numbers I've seen over the years, it really seems that a single can do a basic life at about $24K and a couple can do a basic life at about $36K. Makes the math convenient at $2K or $3K a month. Seems reasonable to me if health insurance is reasonable, you have a paid off living situation and you're not trying to live in Manhattan. And that's reasonable care on spending, not any Dacyczyn-like stuff.

So $40K plus SS for a single would seem to me to be at 2-3X the needed number.

My basic COL is about the same as when I was working. Maybe a bit less actually as I have time to be more efficient on some things, and my stress spending is gone.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is offline   Reply With Quote
Old 02-27-2020, 04:43 AM   #12
Thinks s/he gets paid by the post
UnrealizedPotential's Avatar
 
Join Date: May 2014
Posts: 1,093
It can be done. I live on under 30K a year but I also happen to live in a rather low cost of living area. It just really depends on where you live and what your budget is and the kind of expectations you have for the lifestyle you want to lead. I have everything I need, but of course I do not have expensive tastes and boy does that help when you want to retire.

I think the key for me is that my lifestyle was one of modest expectations without lacking anything I needed. That carried over into retirement and so it was easy to make the adjustment of working to not working as far as my budget went.

In Alaska it might be tougher to retire depending on where you live in Alaska. Alaska can be expensive just like so many places in the USA. I suggest setting a budget and see if you can live on it before retiring. Of course we don't know what expenses will go away and increase in retirement for you, but if you do that, if will give you a rough idea of whether retirement is doable for you or whether you need a larger budget to work with.
__________________
Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things. Charlie Munger

The first rule of compounding: Never interupt it unnecessarily. Charlie Munger
UnrealizedPotential is offline   Reply With Quote
Old 02-27-2020, 06:36 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 5,521
You need to track every expense to see what truly is your budget and can estimate non working adjustments from there.
It would appear that 40k can work for a single, although not our lifestyle.
__________________
TGIM
Dtail is online now   Reply With Quote
Old 02-27-2020, 06:50 AM   #14
Thinks s/he gets paid by the post
 
Join Date: Oct 2012
Location: Colorado Mountains
Posts: 2,862
I retired about 7 years ago whith living expenses of about $40k to $45k. I also had enough money put aside to build my house. Since then the costs of building my house, mostly material, has doubled and I am still building it. My son stayed in college for 10 years instead of the planned 4. I am now paying for teeth implants. My Jeep has sucked an amazing amount of cash out of my accounts for maintenance. Bottom line is my spending has been over what I spent prior to retirement by about double not including the cash set aside for construction. Sometimes things don't work out as you plan. Of course, if l did not have the additional money to spend I would have found a cheaper way to get by.


I think I am in the minority on this Forum. Most folks seem to stay pretty close to their spending plan, but I would sure want a large enough buffer just in case.
Hermit is online now   Reply With Quote
Old 02-27-2020, 07:07 AM   #15
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 456
I am single and my expenses are $35-45k each year. If I exclude some home repairs, it's probably under $40k each year.


House is paid for,
I pay for my own HI through the ACA,
I don't have an extravagant lifestyle but I certainly don't scrimp on anything.
I live in NJ which is not exactly a low cost of living area.
DayDreaming is offline   Reply With Quote
Old 02-27-2020, 07:25 AM   #16
Dryer sheet aficionado
 
Join Date: Nov 2017
Posts: 32
Move to Texas.
retire202052 is offline   Reply With Quote
Old 02-27-2020, 07:53 AM   #17
Thinks s/he gets paid by the post
ivinsfan's Avatar
 
Join Date: Feb 2007
Posts: 4,967
Quote:
Originally Posted by Hermit View Post
I retired about 7 years ago whith living expenses of about $40k to $45k. I also had enough money put aside to build my house. Since then the costs of building my house, mostly material, has doubled and I am still building it. My son stayed in college for 10 years instead of the planned 4. I am now paying for teeth implants. My Jeep has sucked an amazing amount of cash out of my accounts for maintenance. Bottom line is my spending has been over what I spent prior to retirement by about double not including the cash set aside for construction. Sometimes things don't work out as you plan. Of course, if l did not have the additional money to spend I would have found a cheaper way to get by.


I think I am in the minority on this Forum. Most folks seem to stay pretty close to their spending plan, but I would sure want a large enough buffer just in case.
But even then you made some choices, a lot of people wouldn't pay for 10 years of college for a single kid. That's a choice not a requirement for a retirement budget.

You also pointed a general hazard for a large long term DIY project escalating costs. In hindsight you wouldn't have been much worse off if you had just had your house built by others. I know you will have exactly the home you want and from your posts it seems like building your own was a form of a personal journey for you.

So a far as retirement budgets if you want a finished basement or a garage the only way to know the true costs in the future is to take care of it before you retire. Of course with the markets of the last 7 years very likely the increased costs of your materials is covered by market gains.
ivinsfan is offline   Reply With Quote
Old 02-27-2020, 07:57 AM   #18
Recycles dryer sheets
 
Join Date: Aug 2017
Posts: 347
I was wondering why you all thought I lived in Alaska and looked up my profile. Apparently I should have been more careful with the dropdown choice. But yeah I actually think I might spend MORE retired which worries me a bit. Not on something really exotic but just you know more free time go more places do more things . . . IDK. And no disrespect meant to anyone that lives on that I just honestly don't know yet what I might spend. Last year is really not good for tracking as I saved more than I normally would for REASONS and not something I would realistically want to do. I am shooting for some "reasonable" plus "buffer" but I could drive myself nuts saying I needed 90k (which I don't even make w*rking). . . .

Interesting to hear your stories.
badatmath is online now   Reply With Quote
Old 02-27-2020, 08:01 AM   #19
Recycles dryer sheets
 
Join Date: May 2019
Posts: 408
Very easy! Over the last few years, I'm actually spending about $16,000/yr out of my take home pay while working. I'm single, my projected retirement required spending including future healthcare, a car sinking fund, and long term home maintenance sinking fund runs about $22,000/yr plus a little more to cover income taxes. So that's my barebones budget to cover the things that I must pay for. $40,0000 would give me plenty of discretionary spending to really enjoy retirement, even without SS, so SS would be icing on the cake. Of course, despite that, my stash will allow me to spend closer to $70,000/yr after taxes with all income sources included, so I'm sure I'll really be cranking up the discretionary spending when I retire, but it's hard to imagine I'll actually spend as much as my stash will allow. For me, a likely relocation is a wild card as my expenses will most likely increase if I move.
GenXguy is offline   Reply With Quote
Old 02-27-2020, 08:02 AM   #20
Full time employment: Posting here.
 
Join Date: Aug 2015
Posts: 626
You don’t mention your age or age you plan to leave, or estimated SS. Those all make a big difference, IMHO.
__________________

Perryinva is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
40k a year billin FIRE and Money 15 03-22-2010 02:43 PM
If you HAD to invest 40k, what would you do? thefed FIRE and Money 17 05-10-2006 06:23 AM

» Quick Links

 
All times are GMT -6. The time now is 05:24 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
×