Hard for a single to live on 40K + SS?

[retire202052]

You forgot to mention we are all full except for this part of the state:

After sitting in traffic for 40 minutes this morning, that actually looks appealing

 

[REWahoo]

After sitting in traffic for 40 minutes this morning, that actually looks appealing

+1

Now that you mention it, nearing sunset in the summer when the temp drops back into the 90's, it can be almost pleasant.

 

[Aggie1999]

For a LCOL area in the US, easily. I'm single, mid 40's, no kids and no loans. My base expenses are around $1400 per month. Includes everything except income tax.

I track all expenses. At the start of the month I add up all expenses for the previous month so I know where I am at. Some months I spend over $2k. Some I spend ~$1k. My end of the year goal is $24k.

 

[badatmath]

You don’t mention your age or age you plan to leave, or estimated SS. Those all make a big difference, IMHO.

Plan to leave @ 55. Currently 52. IDK my SS since I ignore it for now. I probably will take SS at 62 so it won't be much. (Most of my family has passed @ 60 or earlier). No kids or parents I will have to support.

 

[Hermit]

For a LCOL area in the US, easily. I'm single, mid 40's, no kids and no loans. My base expenses are around $1400 per month. Includes everything except income tax.

I track all expenses. At the start of the month I add up all expenses for the previous month so I know where I am at. Some months I spend over $2k. Some I spend ~$1k. My end of the year goal is $24k.

As long as no unplanned expenses come up like dental bill's, etc. I would rather work long enough to cover reasonable unplanned expenses. That is easy for me to say because the thought of early retirement didn't cross my mind until I had more than enough.

 

[Amethyst]

Our basic expenses, including health insurance, for two people are less than $40K. It wouldn't leave much for building an emergency fund, though, so you're right to think of those as separate pots.

Also, we are watching "basic" expenses climb, as we are aging, and have to hire out more and more tasks. Something to think about.

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. .

 

[ncbill]

The relative I buried a year ago (early 70s) lived on ~$1,800/month SS retirement taken at age 62...not much choice after they were laid off at age 60.

Their standard of living would have been significantly higher had they not carried a mortgage into retirement (& added a HELOC), but c'est la vie.

 

[jkern]

I live in the SF Bay Area with a paid for house. My essentials are $30K, routine discretionary spending $15K and irregular discretionary spending about $15K. Very comfortable standard of living on $60K per year.

 

[Aggie1999]

As long as no unplanned expenses come up like dental bill's, etc. I would rather work long enough to cover reasonable unplanned expenses. That is easy for me to say because the thought of early retirement didn't cross my mind until I had more than enough.

That's why my base expenses are ~$1400 per month, yet I estimate $24k spending per year. Last year I had unplanned ~$3,500 in medical expenses and replaced the roof on my house (insurance reimbursed ~60% the cost on the roof). I still hit my $24k spending goal.

Now would I retire with a 4% number of $24k? Heck no! I would though on the OP's proposed numbers ($40k + SS) as long as I lived in a LCOL area.

 

[Time2]

It was my tentative plan to live on $40k. I'm in my second year of retirement with two kids in college. My first year I didn't get good separation of their costs vs our spending. But even so, I think we are between $50k and $60k, But that does include $12.5k of health insurance cost for the whole family, and $9k of rent for my son. This year should give me clearer costs.
BTW, we have no debt or mortgage.

 

[Teacher Terry]

When we don’t travel we can live on 48k for two in a MCOL. That includes discretionary spending.

 

[Offgrid Organic Farmer]

Hard for a single to live on 40K + SS?

After I retired we migrated to Maine. Now that we have lived here 15+ years, most of the fellow retirees that we know, all live on SS.

They all own their homes too.

... Is that unrealistic if you assume paid for house, health insurance covered

That is not unrealistic at all, not here on the East Coast [so long as you avoid the cities].

... 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. .

As you wait for the benefits to kick in, keep in mind that you will never 'retire early'.

 

[Offgrid Organic Farmer]

For a LCOL area in the US, easily. I'm single, mid 40's, no kids and no loans. My base expenses are around $1400 per month. Includes everything except income tax.

I track all expenses. At the start of the month I add up all expenses for the previous month so I know where I am at. Some months I spend over $2k. Some I spend ~$1k. My end of the year goal is $24k.

I am also in a LCOL area. My military pension provides me with around $19,000/year. My wife and I started this with our children still living at home, but now days they have all grown up and moved away.

We are years away from being old enough for SS, so that does not figure into our budget.

We make enough that we have been able to invest around a third of our income.

 

[ERD50]

Not near enough information. What will your expenses be? If you don't know, there is no answer (well, the answer can always be "Yes", but you may not live in the style you desire). Income: is that single or combined SS? If combined, what if one spouse dies?

And where does that "$40K" come from? If it is a $40K withdrawal from a $120K portfolio, then no! How is the portfolio invested?

And saying you have a separate fund for things like a new roof just complicates it. It's all money, it's all expenses. Figure it all out.

-ERD50

 

[ERD50]

It would be very easy in the Midwest.

It wouldn't be easy if I wanted to maintain my current lifestyle. I'd have to rob banks!

Of course it can be done. It can be done on a lot less. How much income do you think the poor souls sleeping under Wacker Drive in Chicago make?

The question should not be "can", it should be "can I support my desired lifestyle on $X?".
Anything else is a "how long is string?" Q/A.

-ERD50

 

[badatmath]

And saying you have a separate fund for things like a new roof just complicates it. It's all money, it's all expenses. Figure it all out.
-ERD50

I suppose but I mean I already have the emer fund. Haven't taken any money out in 8 years. I was just trying to be conservative really and assume less assets than I actually have. There is pretty much zero chance I am going to live to be 92 either! Definitely not blessed with good family history to inspire me, but not planning to eat cat food and live under an overpass.

 

[Walt34]

I've only lived in two states, WV and MD. In both states you'll be fine on $40k + SS except obviously, the D.C. metro area. Stay away from that and no worries. And in many parts of both states you'd be considered downright wealthy.

 

[Aerides]

1 person
40k per year
+SS
House paid off
HI covered separately

Of course, very very doable, since, based on most threads here many couples do so on double that quite easily.

However, big red flag "oh but once i retire I won't spend as much on xyz..." you're right, you probably won't, but there will be other things that easily take up the slack.

 

[deserat]

You forgot to mention we are all full except for this part of the state:

You certainly have been consistent in your external opining on Texas over the years Now, your behavior on the other hand with regard to living in Texas....

You crack me up every time you do that....

 

[badatmath]

So far I do not have the guts to leave sooner since it would mean giving up the healthcare benefit. But I would not be shocked if laid off before 3 years have passed either.

 

[Time2]

To put things in prospective, 1/2 of the population lives below $63,000 a year. Many of those have a mortgage and kids.
Not sure if you have kids but you said you don't have a mortgage.
So, $40k + $18k? SS, you are at $58k, maybe more, if your wife gets another $18k.

 

[imnontrad]

It depends on where you live.
If I just calculated my basic expenses (that is, excluding travel), I live on less than $20,000 a year and have not touched a dime of my retirement funds yet and I do not plan to sign up for SS for 5 more years. BUT I have health care covered, which would have increased my need if I had to buy a policy.
I decided years ago several criteria for retiring - being completely out of debt (including home), a certain dollar amount of investments/savings, plus covered by a health plan. i have had too many family members who had serious medical problems to leave work without that in place. I chose to live in a spacious townhouse and the HOA takes care of outside maintenance.

 

[badatmath]

I don't know how some folks have the guts to use ACA. But I am sure in some states it is much better. One year we were down to one provider; I know they have more now but all HMO I believe. Would not feel very comfortable especially sine the only things I found last time I looked were complaints. However that has been awhile, it may have improved.

 

[wildbilly]

I live on 30K per year; non-taxable. My house is paid for and I get great insurance thru the state. I have some funds set aside for larger items too but your extra 10K could cover that. Track your spending in a spreadsheet. Cheers!

 

[daylatedollarshort]

To put things in prospective, 1/2 of the population lives below $63,000 a year. Many of those have a mortgage and kids.
Not sure if you have kids but you said you don't have a mortgage.
So, $40k + $18k? SS, you are at $58k, maybe more, if your wife gets another $18k.

And if they are working they are paying into Social Security, have job and commute costs, and may have less time to cook, price shop, do their own house cleaning, and other tasks that retirees with more free time may be able to save money on.

We out to eat for a 5:00 pm dinner special the other night and the place was packed with seniors. After 6 or so the prices doubled.