Yes, it is possible to live off Social Security alone even if your house is paid off. While it may not be the most luxurious lifestyle, it is certainly achievable with careful planning and budgeting.
Here’s a breakdown of the key points to consider:
Average Social Security Benefits:
- The average monthly Social Security benefit in 2023 is $1,688.
- This translates to an annual income of $20,256.
- The highest possible benefit is $4,555 per month for someone who files at age 70.
Living Expenses:
- Housing costs should not exceed 1/3 of your income.
- Transportation costs can be significantly reduced by walking, biking, or using public transportation.
- Healthcare costs can be minimized by staying healthy and choosing the right Medicare plan.
Strategies for Living on Social Security:
- Wait to start Social Security: Delaying benefits until age 70 can increase your monthly payments by 32%.
- Share housing: Consider living with roommates or family members to reduce housing costs.
- Relocate to a more affordable area: Research states with lower costs of living and housing prices.
- Cut expenses: Track your spending and identify areas where you can save.
- Prioritize your wants: Focus on the things that are most important to you and cut back on non-essentials.
- Plan for the future: Use a retirement calculator or planner to create a budget and track your progress.
Additional Resources:
- NewRetirement Planner: This free tool helps you create a personalized retirement plan and track your progress.
- Social Security Administration: Get information about Social Security benefits and how to apply.
- Medicare.gov: Find information about Medicare plans and how to choose the right one for you.
Living on Social Security alone may require some adjustments to your lifestyle, but it is definitely possible. By following these tips and using the available resources, you can create a comfortable and fulfilling retirement.
Additional Tips:
- Consider working part-time: This can supplement your Social Security income and help you cover unexpected expenses.
- Downsize your home: If your house is too large or expensive to maintain, consider moving to a smaller, more affordable home.
- Sell unused assets: Do you have any valuables that you no longer use? Consider selling them to generate extra income.
- Get creative with your hobbies: There are many ways to enjoy your hobbies without spending a lot of money.
- Stay connected with friends and family: Social interaction is important for your mental and emotional well-being.
Recall that while living off of Social Security alone can be difficult, it is possible with careful preparation and an optimistic outlook.
“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. ’’ Proudly frugal, he retired in 2015 from a small manufacturing plant in Erie, Pa. , and relocated from the snowbelt to sunny Ormond Beach, Fla. His wife, Laurie, 45, joined him and began working at an assisted living facility. The couple paid $134,000 in cash to buy a 1,000-square-foot home about 600 yards from the ocean.
“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 his “personal 401(k)’’ is four collectible motorcycles worth about $60,000. Of course, unexpected expenses crop up. A hurricane damaged the roof in 2016. “The amount of work around the house is exponential compared to up north,” Stevens says. “Other than that, living down here is like living on a giant cruise ship. “.
“It Keeps Us Going”
DeWitt and Diane Head, Hubbardsville, N.Y.
For the majority of their 54-year marriage, DeWitt Head, 77, and his wife Diane, 73, have milked cows together and raised five children, including prize-winning Holsteins. Dairy farming has been a good life, says DeWitt, a fifth-generation farmer. “It keeps the family close. ” DeWitt and Diane still live near the 900 acres first purchased by DeWitt’s great-grandfather in 1904. The couple farmed that land for many years, but DeWitt suffered from heart disease at the age of sixty while he was still milking one hundred cows three times a day. He had to give one of his sons ownership of the business after selling his herd and a portion of his land. “I started taking Social Security at 62, because I was told I would die. But I proved them wrong,” says DeWitt.
The Heads receive a combined Social Security payment of around $1,000 a month. “We’re farmers. We never made a lot of money. ” But the income “keeps us going,” DeWitt says. “Most of my friends get more, but they waited longer. Following his cardiac condition and his near-retirement from dairy farming, DeWitt drove a school bus and worked at a golf course. But at 72, he was persuaded by Diane to retire. “She said it’s time to slow down. DeWitt expresses gratitude for Social Security and hopes that it will continue to provide a safety net for future generations. “The politicians shouldn’t touch it. “.
Mae Gillespie, Roanoke, Va.
Mae Gillespie has a good head for numbers. After graduating from college with a business degree in her early years, she worked in bookkeeping and other financial positions. The 84-year-old now lives comfortably on the $1,101 she receives from Social Security thanks to all of that experience. “I’ve never had any issues, but I am aware of how to manage a budget,” Gillespie remarks, residing in a peaceful, shaded one-bedroom apartment in a federally subsidized complex for individuals sixty-two and above. Gillespie contracted multiple sclerosis at age 22, but she never let it keep her from working, she says. She moved to Roanoke more than 15 years ago to be close to her daughter and son-in-law. She manages to tithe to her church after paying for rent, utilities, phone, supplemental health insurance, and a medical alert device, all for about $220 a month in groceries.
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Her daughter is a big help, she says. They get together every Saturday for coffee and to run errands. She considers herself to be in good health and believes that helps her live within her means. “I don’t take medicines,” she says. The local Office on Aging provides rides to the few medical appointments that she has to make. Gillespie claims to have a busy life because she attends her apartment complex’s tai chi class, a weekly Bible study, and other events. She likes to sit near a small fish pond and read. “I’m very much at peace,” she says.
Can I Retire on Social Security Income Alone?
FAQ
Can you live on Social Security only?
What is it like to retire on Social Security only?
What is the 10 year rule for Social Security?
At what age is Social Security no longer taxed?
Can you live off social security if your house is paid off?
A married couple jointly receiving $2,531 in monthly Social Security payments can comfortably cover the $388 monthly expenses of a paid-off house, while the house with a mortgage requires nearly half of their Social Security income.
How much social security if a house is paid off?
A married couple jointly receiving $2,531 in monthly Social Security payments can comfortably cover the $388 monthly expenses of a paid-off house, while the house with a mortgage requires nearly half of their Social Security income. How much do I need in retirement if my house is paid off?
Can you live off Social Security?
You can potentially use Social Security alone to support yourself, but you would need to plan in advance to ensure that your monthly check will cover your necessary expenses at minimum, including your food and housing. To live solely off Social Security, you will likely have to decrease your living expenses significantly and live frugally.
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.