• Question
  • Living on Retirement at 62

    Asked by a 64 year old woman from Wilsons, VA on 3/6/2017

    I retired at 59 due to medical issues and starting social security ($1.3K) w/government pension ($800). Right now, I have $6K savings and recently just invested in a mutual fund. Right now I pay rent $650, car loan $300, and school loan $210. I may have to move and my rental will probably will increase to $900 or more. I am living with my sister paying her phone bill, including her daughter's, which stopped. I have $30K invested in land that I hope to sell. As I look at my money, I notice that I have lost a large amount. How can I survive on my retirement and what changes do I need to make my income work for me?

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  • Categories: Retirement Planning, Retirement Income

Answers

  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • Hi,

    Some ideas to consider:
    1) Can you work longer or part time and delay retirement? https://www.newretirement.com/retirement/can-i-retire-now/ This has multiple benefits:
    - you give yourself more time to save and your savings can grow for a longer period of time
    - you'll need to rely on your savings for a shorter amount of time
    - your Social Security monthly benefit will be higher (up to ~75% higher if you can delay until 70)
    2) Have you explored services like Benefits Checkup? https://www.newretirement.com/Services/Low_Income_Benefits.aspx
    3) Have you considered relocating to lower cost area in the US or abroad? (You're already homesharing with your sister which is probably a good idea.) https://www.newretirement.com/retirement/5-ways-to-cut-housing-costs-in-retirement/
    4) Have you built a detailed budget on whether you can afford to live on your Social Security and Pension income?
    5) Have you considered doing a HECM for purchase? https://www.newretirement.com/retirement/use-reverse-mortgage-purchase-new-home/ You could explore buying a ~ $60K home with $30K down and only need to pay taxes and insurance

  • Login to rate this answer:   Answered on 3/13/2017
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.