21 Ways to Cut Expenses in Retirement

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I agree with double dipping, as a retired school teacher, it is a shame that I am penalized 2/3 of my social security benefit. The quaters that I paid in SS were all years before I began teaching (which did not pay into SS). Retirement is going to require me to downsize and move to an area more friendly to people on a fixed income.
Ray in Texas

Ray Wommack of TX 10:45AM August 18, 2010

When I retired from the post office I did not know that 2/3 would be taken from my SS monies. I worked outside of the post office and I felt that all of my SS monies was due me.

Barbara of NJ 2:06PM August 17, 2010

I couldn't agree more!
I also retired at 62, in my case because my family history does not portend a long retirement. I try to watch my diet, I walk the beach every day and do a little strength training a couple of times a week to keep me healthy.
When I was 60 I was contributing just about the max to my 401k and Roth IRA and the house had been paid off for a decade. I ran the numbers and realized that I was already living on the cash flow I could get at 62 between SS and a small pension, so my choice was pretty easy. I do not anticipate having to touch my retirement savings for a few more years, and then just to make sure I spend it before i croak.
I track my expenses and never carry a balance on my credit cards. I live a simple life so my expenses are low. Buying a house was probably the best investment I ever made, all I worry about now are the damn real estate taxes.

Bob C of MA 12:10PM August 17, 2010

Those who can afford to delay taking soc sec to get a higher benefit probably don't need the higher benefit. Those who need the higher benefit probably can't afford to delay taking soc. sec. I could have afforded to wait but decided to take the benefit at my full retirement age of 66 preferring a bird in the hand vs., two in the bush. [Taking earlier was not an option due to my part-time earnings exceeding the amount you are allowed to earn before full retirement age.] Early on my goal was to be debt free by age 55 and I beat that date. It doesn't really take that much to live on if you own your own (modest) home and have no mortgage or other debt.

Jake of OH 10:47PM August 10, 2010

At age 62 I did the math and determined that if I'd waited to take Soc Security it would take about 14 years for the wait to pay off. Bird-in-Hand won out. Who knows what the Social Security future brings?
Taking it at age 62 gives my taxable IRA $$s time to recover from the recent declines.

Bill Casey of VA 10:13AM August 10, 2010

To me, the Key to a solid financial retirement is a more frugal lifestyle and No Debt, No Debt, No debt!!!!
As is apparent after the recent market disaster, there is NO guarantee that your investments will hold value.
If you have investments use some of them to pay down ALL debt. Do not buy new cars, do NOT use credit cards unless you pay them off each month.
Remember, oVer time it is almost impossible for the guy on the street to earn more than your 6 61/2% mortgage without some risk.
If your investments tank during retirement, you will not have the time to grow them again as you need that money to live on NOW.
Move to a smaller home, drive your car until it is worthless! DO WHAT IT TAKES!!! The important things in life are not big houses and new cars. Family, friends, relationships are most important and you do not need great amounts of funds to have those relationships.
Pull up "frugal life style" websites for ideas on inexpensive living.
Savings come from many things. Cancel all but liability ins. on old cars, Convert lights to CFL's, turn thermostat upor down a few degrees, cancel expensive cell phone contracts, grow a garden, use the library instead of buying books, moving to a smaller home reduces living costs, take public transportation if possible, buy only items on sale and delay buying items for three days. OFten you will discover that you no longer want or need what you thought was so desireable a few days back. If you have internet, cancel all paper subscriptions and get free news on line, AND last but not least use a budget to control your expenses and track your spending.
IF your investments have already tanked, then extra years of work may be the only answer unless you can get family help

JIm of AZ 10:51PM August 07, 2010

I lost my job after 22 years at age 44. My pension is garbage from my first employer. I worked my own business for 5 years, saved a little money. Worked for a big company, qualified after 10 years for a pension, it's frozen. Now it's marginally better from my first job. I will just work until I die. Can't afford to retire. 62 and at least 8 more years of work before I can retire.

Dog Mann of FL 10:23AM August 06, 2010

One thing nobody here has talked about much is how to retire with a nice enough home in a nice enough place that your kids and grandkids will want to visit frequently. Mexico is attractive to me but is it so far away that family won't visit? Do I have to move to Orlando instead?
How big a place do you need for younger generations to feel comfortable visiting? I would think a 2-bedroom condo at least. And I'm sure access to a pool is a must. I can live simply, but want to make sure people will come.
I would be interested in hearing the experiences of others who have moved to places they hoped/expected their relatives would visit.

Rita of IL 4:49PM August 04, 2010

On paper it looks like a good idea - essentially amounts to buying an annuity with a 7.5% payout. Practical problem is that those that can afford to wait an extra 4 years (age 70 instead of 66) probably don't need the extra ss benefit, and those that need it can't afford to live in those 4 years without the benefit. I could have afforded to wait, but did not because the modest advantage was outweighed by the fact that I don't trust Congress. Ten birds in the hand are worth more than 13 birds in the bush. Also, they tell me I can wait until I am 70, then pay it all back (no interest) and my ss will reset. So there is still that option.

Jake of OH 5:00PM July 27, 2010

I retired from calif in 2000, not of my choice at age 62. Moved to Florida and enjoyed a more rural life with house, car, etc paid off. I worked 42 years in petro/chemicals and never got a pension but did save most of those years so can draw on savings along with SS.
Bob

robert ackert of FL 10:49AM July 27, 2010