Living on Social Security alone is a reality for many retirees. While it may not be a luxurious lifestyle, it’s achievable with careful planning and a few adjustments.
The Average Social Security Benefit:
The average monthly Social Security benefit in 2023 is $1,681. This translates to an annual income of $20,172 for a single person. For a married couple, both earning Social Security, the annual income could be $40,344.
Living on Social Security Alone:
Living on Social Security alone requires careful budgeting and a focus on essential expenses. Here are some tips to make it work:
1. Delay Social Security Benefits:
Waiting to claim your benefits can significantly increase your monthly payments. Each year you delay claiming after your full retirement age (between 66 and 67), your benefits increase by 8%. This means you could receive 32% more at age 70 than at age 66.
2. Share Housing Costs:
Sharing housing with roommates or family members can significantly reduce your housing expenses. Consider renting out a room in your house, combining funds to buy a home with others, or exploring communal living options.
3. Consider Relocating:
The cost of living varies significantly across the country. Consider moving to a state with a lower cost of living and housing prices to stretch your Social Security income further.
4. Live in a Temperate Climate:
Heating and cooling costs can be substantial. Living in a temperate climate can help you save money on energy bills.
5. Pay Off Debt Before Retiring:
Reducing your debt before retirement frees up more of your Social Security income for living expenses.
6. Cut Transportation Costs:
Transportation can be a significant expense in retirement. Consider walking, biking, using public transportation, or carpooling to reduce costs.
7. Prioritize Your Needs:
Living on Social Security alone may require prioritizing your wants and needs. Focus on the essentials and consider alternative ways to fulfill your desires.
8. Plan and Budget Carefully:
Create a detailed budget and track your expenses to ensure you’re living within your means. Utilize retirement planning tools to project your future financial needs.
9. Cut Expenses:
Review your spending habits and identify areas where you can cut back. Small changes can add up to significant savings over time.
10. Explore Assistance Programs:
Several government programs and resources are available to help low-income seniors. Research and apply for programs that can supplement your Social Security income.
11. Stay Healthy and Choose Wisely:
Maintaining good health and choosing the right Medicare coverage can help reduce healthcare costs in retirement.
Living on Social Security alone is possible with careful planning and lifestyle adjustments. By following these tips, you can maximize your Social Security income and enjoy a comfortable retirement.
According to a recent survey by RetirementGuide, 81% of Americans are concerned about how inflation might affect their future benefits from social security. Since 33.5 percent of people intend to rely exclusively on social security after retirement, we mapped out 2012 ways to help make it feasible to live solely on social security.
“I’m So Darned Spoiled”
Mark Stevens, Ormond Beach, Fla. Health & Wellness
Dental insurance plans for members and their families
Mark Stevens spends his free time either chipping golf balls or relaxing in a beach chair with a fishing rod close by when he isn’t tinkering with one of his vintage motorcycles. Stevens retired early, but he and his wife are able to maintain a comfortable, if ostentatious, lifestyle in Florida thanks to his monthly check. “It is summertime all the time,’’ says Stevens, 65. “I am so darned spoiled. He was a proud thrifty man who retired from a small Erie, Pennsylvania, manufacturing plant in 2015. and moved to sunny Ormond Beach, Florida, from the snowbelt Laurie, his 45-year-old wife, came to work with him at an assisted living facility. The pair purchased a 1,000-square-foot house approximately 600 yards from the ocean for $134,000 in cash.
“Without Social Security, you cannot sniff retirement,’’ says Stevens. His Social Security benefit is lower than it would have been if he had waited to retire at age 62, but the $1,400 monthly payment helps the couple pay their expenses and engage in leisure activities. Stevens jokes that he has four collectible motorcycles, each worth roughly $60,000. This is his “personal 401(k).” Of course, unexpected expenses crop up. A hurricane damaged the roof in 2016. “Compared to up north, the amount of work around the house is exponential,” Stevens remarks. Apart from that, it feels like you’re living on a massive cruise ship down here. “.
Former SSA Insider: Survive on Social Security; Tips, Tricks, Secrets! #socialsecurity #medicare
FAQ
How many seniors live on Social Security alone?
Can you retire on Social Security alone?
What is the 10 year rule Social Security?
How much money can I make on Social Security?
Should you live on social security alone?
You may not want to live on Social Security alone. But unfortunately, you might need to if you don’t have independent savings or a pension and you’re unable to work in some capacity. If that’s the case, here’s how to get the most from your Social Security benefits. Image source: Getty Images. 1. Move somewhere with a low cost of living
Can you live on social security if you have no savings?
To have a financially secure retirement, you should have some retirement savings, but some people retire with no savings. Living on Social Security alone is possible, but you will need to have a frugal lifestyle to make it work. You can maximize your Social Security income by delaying retirement until age 70.
Can you retire on social security alone?
For people who have paid off their homes and live in an area with lower costs of living, retiring on Social Security alone can be possible. In fact, about 12% of men and 15% of women already rely on Social Security to meet 90% of their living needs, according to Social Security Administration statistics.
Can You Live Well on social security?
It is possible to live well on Social Security, according to Brian O’Connor, author of “The $1,000 Challenge: How One Family Slashed Its Budget Without Moving Under a Bridge or Living on Government Cheese.” He knows this because he helped his father-in-law, who was living on Social Security alone.