How have some done retirement on Pension and little savings.

[dumpster56]

Wondering, We have a fair pension with medical . We are in our early 50s. It works with about a 45,000 package. There is a cost of living boost yearly. Other than that savings is well under 100,000 but the house is paid and no outstanding loans like a car payment. If I think we need more cash I can work some part time work. The old job was killing me, just had to leave and feel so great. Money? I guess we will make the pension work.

[OAG]

I did exactly that in our early 40's. DW and 4 kids at home. Worked a bit, kids went to good colleges (one went in Army, oldest went into the Naval Academy and will "retire" next year after 26 years of AD), and all worked out just great. After almost 30 years now we have 9 grandkids, more cash than we reasonably can spend (that is reasonably), and we are enjoying life.

[Moemg]

The only word of caution I can add is be sure the spouse can make it on the reduced pension amount if anything happens . I was widowed at 51 and the survivor pension is 60% of the original .

[OAG]

Quote:

Originally Posted by Moemg The only word of caution I can add is be sure the spouse can make it on the reduced pension amount if anything happens . I was widowed at 51 and the survivor pension is 60% of the original .

VERY good point. Something that can create a very good reason for life insurance but only until you can "fill the gap" with savings or some other means.

[dumpster56]

Quote:

Originally Posted by Moemg The only word of caution I can add is be sure the spouse can make it on the reduced pension amount if anything happens . I was widowed at 51 and the survivor pension is 60% of the original .

She gets 75% of the pension and does lose medical insurance. I have two term policies of a total of 500,000 of insurance that are fixed for the next 15 years at 600 dollars a year in cost.

[yakers]

We'll see how it works out. DW retired 1 1/2yrs ago, very small pension; I retired 3 months ago better pension; reasonable medical, house paid/no debt; one son left just finished 1st yr of college. We do have some savings and we could work if we have to.

so we will see what happens. The way I figure it is we can cover our current lifestyle without working, only problem is a lifetime of retirement dreams ( 'Paris time') that DW contemplates.

[chris2008]

Dreams like travelling could be realised at little cost if you think out of the box:
Forget internat. hotels and restaurants and arranged tours.
Consider house/room swap, furnised apartments, private rooms, biking, living like the locals do.

[ABLeever]

Retire early on low income
Impossible in the US. We couldn't do it. We had two lovely condos paid in full on Oahu in Hawaii. No debt. We were flush. BUT the maintenance fees were $500/mo each on the condos with renters becoming increasingly less reliable. (Condo building was 30 yr old with eventual maintenance issues.)

Last Summer we sold both condos all the cars and retired to the Rep of Panama. Bought a home with a beautiful view in the mountians & a 2008 Toyota 4x4 pickup. Now living on a $1270.00/mo SS check, a $275.00/mo pension and $1200 in dividends. We have plenty money left over.

We have a retirement visa here that is good for our lives...it never expires til we do.

Now if the tide turns and we find the climate chills here to retirees, we should still be AOK. Why? Because currently we can live here on next to nothing and have the liberty to use our extra $$ to invest while the market is so low. (this includes some IRAs we re-directed into Asian markets and gold boullion bought with dividends)

We are 59, and 63 yr old. Simple folk (retired waiter and nurse)

Lots of Americans here that did the same thing. Generally speaking we are all pretty happy campers here in spite of losses we all have had in some investments with falling markets & housing losses.

There are still plenty good deals here in Panama. Panama's economy is still quite strong. So far American retirement here is something the govt. welcomes and encourages ( see Panama Pensionado visa & the many discounts that go with it from medical to travel costs )

Hope this helps.

AB Leever
Boquete, Panama

[FANOFJESUS]

AB Leever's idea might also work in the midwest or the south. AB Leever is living for about 2745 a month and we can do that here in the midwest with no debt.

[ABLeever]

Re: Possible to retire on limited income in the US
In Panama:
Medical care, dental care, vision and drugs are all a fraction of what it would cost in the US. Doctors (many of them) are US trainned. My neighbor just had bilateral inguinal hernia repair for $1500.00, Another friend had her son hit by lightening ( side strike) and spent $70/day for the ICU room in a private hospital. We paid for prescription eyeglases $100 a pair, exam free. Medical insurance is $800/yr for two people. I've been a RN for over 40 years and find the quality of medical care here fairly impressive.

So, back to what you were saying regarding the US and inexpensive retirement....I think medical care could become expensive in the US when you have no medicare.
When you're in your late 50's and early 60's things start falling apart.

I think it's possible to live on just under $3000 a month in the US but the quality of life might be a bit different.

AB Leever

[REWahoo]

AB, I asked this before and got no response: Are you in the real estate business in Panama? Or do you work for the Panamanian Chamber of Commerce? Or do you stand to benefit in some way if someone contacts you about moving to Panama?

I ask because it seems you are trying very hard to sell the benefits of living in Panama - seeking out and posting to a thread inactive for several months, for example.

[ABLeever]

Dear moderator
You asked if there was a reason I'm giving so much positive information on Panama that you (as moderator) had a concern that I had a commercial interest to promote it.

No. I am an American citizen very happily retired in the Rep of Panama where my husband and I have purchased a home and have never been happier in our lives. The quality of our life is extremely comfortable. We have excellent neighbors and have an opportunity to contribute to mission service as well. This is something we never dreamed could possibly happen in our lifetime. I share our discovery with others.

You read my enthusiasm as ulterior motive and self interest.

No problem...delete if you wish. I can understand your concern. Nobody wants to feel they're being hyped.

AB Leever...still

[Bestwifeever]

AB Leever, I see that all your posts are about living in Panama and only about living in Panama, so I think REWahoo's question is a fair one. Although I do think your posts are interesting (even though I can't imagine following your lead there), there are other threads where your input and questions would also be welcome.

[haha]

Quote:

Originally Posted by rec7 AB Leever's idea might also work in the midwest or the south. AB Leever is living for about 2745 a month and we can do that here in the midwest with no debt.

Once a person hits Medicare age it shouldn't be too hard to live on $2500 or so in the Midwest or South. I just returned from a trip out there. Small but A-OK apartments (in quads) in excellent neighborhoods less then $500/mo, with heat and garbage and water included. This is in a metro of almost 2 million people, with universities, museums, symphony and ballet, NFL and major leage baseball. Plenty night life, but of course more limited than in big coastal cities.

Also, I bought groceries out there for several weeks, and they are 1/2 to 2/3 of what they cost here in Seattle.

I didn't do careful calculations because I am not going there, but at no more than $600 for habitation and utilities, $100 for phone and cell, $300 for medical, $300 for groceries, you have $1200 left for cable, baubles for the girls, car etc. Not a big surplus, but you should certainly do OK.

Ha

[FIREd]

Quote:

Originally Posted by haha Once a person hits Medicare age it shouldn't be too hard to live on $2500 or so in the Midwest or South. I just returned from a trip out there. Small but A-OK apartments (in quads) in excellent neighborhoods less then $500/mo, with heat and garbage and water included. This is in a metro of almost 2 million people, with universtities, museums, symphony and ballet, NFL and major leage baseball. Plenty night life, but of course more limited than in big coastal cities. Also, I bought groceries out there for several weeks, and they are 1/2 to 2/3 of what they cost here in Seattle. I didn't do careful calculations because I am not going there, but at no more than $600 for habitation and utilities, $100 for phone and cell, $300 for medical, $300 for groceries, you have $1200 left for cable, baubles for the girls, car etc. Not a big surplus, but you should certainly do OK. Ha

MIL currently lives on $2500 (net) a month in AL. No debt. Medicare. Not living high on the hog, but still very feasible. Food $400 a month. Utilities (phone, internet, electric, water) $300 a month. Healthcare (medicare premium, LTC premium, medicare part D, supplemental insurance and co-pays) $600 a month. Car (gas, insurance, repairs) $300 a month. Property taxes and insurance $200 a month. That leaves about $700 for gifts, donations, vacations, clothing and her "pet" projects.

[nun]

Quote:

Originally Posted by rec7 AB Leever's idea might also work in the midwest or the south. AB Leever is living for about 2745 a month and we can do that here in the midwest with no debt.

I live on $5k a month in Boston MA, but $3k of that is the mortgage. I have 8 years until it's paid off and without that and work related costs, my expenses will be well under $2k/month. In retirement my employer offers health insurance for $62/month, and I always have the option of moving to the UK, as I'm a UK citizen, if the US health care system implodes. My 2 family house produces $15k/year in rent and I'll have a small 5k/year pension that I'll supplement with dividends form my retirement accounts. At 62 I'll take SS ($11k/year) and at 67 I'll get a UK state pension (currently $10k/year)

[OAG]

Live in the midwest and if it was not for RE taxes we could live well on about $1,800 a month here - RE Taxes takes it to about $2,500 a month - but we like the condo we live in and being retired the weather can be ignored. We did live in the south (Northern Florida) for about 19 years and there (1986-2005) we did live on less than $2,000 a month - in a $300K SF Home. We get around (recently up and moved to Ohio 3 years ago because we wanted to and plan to relocate again in 2010-2012) although we are 68 and 70 respectively.