Can one maintain a comfortable lifestyle during retirement relying solely on Social Security benefits?
Yes and no.
Alden and Dena Swartz receive approximately $4,000 each month from Social Security, the federal initiative meant to assist Americans during their golden years. Despite this, they find themselves facing difficulties.
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Gail Randle along with her partner, Mike DellaVolpe, receive just $2,400 monthly from their Social Security benefits: approximately $30,000 annually. Despite this income, they manage to get by adequately.
We are thrifty folks," explained Randle, who is 73 years old. "Pretty much everything in our home has been reused or salvaged. You know, stuff we got from thrift stores. But it all looks good and functions well.
Social Security was not designed to cover the entire expense of retirement. Typically, the benefits provide only a portion of what retirees need. covers about 40% A worker’s pre-retirement income is part of this concern. The amount might decrease further as the Social Security system expects a funding gap by 2035, says the Congressional Budget Office. President-elect Donald Trump suggests eliminating taxes on Social Security benefits, potentially draining the fund even more. two years sooner .
The majority of Americans believe you require at minimum $1 million At the bank, above Social Security benefits, for a comfortable retirement. Financial institutions and media narratives endorse this mindset: Aim to save 10 times your yearly salary Before you step down from your job, popular advice recommends, if you wish to maintain your current standard of living.
However, the issue remains: The majority of Americans do not come close to saving this amount. According to data from the federal Survey of Consumer Finances, families aged between 65 and 74 who have a retirement account typically accumulate around $200,000. This figure applies only to roughly half of these household units. own retirement accounts altogether .
So, here’s the question: How are those individuals faring?
Just fine, says Andrew Biggs , a senior fellow at the American Enterprise Institute think tank. He wrote an essay that went viral this year He argues that you can achieve retirement with significantly less than $1 million saved; according to him, having between $50,000 and $100,000 in your nest egg should suffice.
Biggs cites another federal document, the Survey of Household Economics and Decisionmaking, as evidence. This survey queried retirees between the ages of 65 and 74 about their financial management. Approximately 85% reported that they were handling their finances adequately.
Once people retire, "they significantly reduce their spending," according to Biggs. "Much of the hustle and bustle associated with work tends to diminish once retired."
To put this idea to the test, USA TODAY contacted retired individuals nationwide who primarily rely on Social Security income and asked about their experiences. Assistance for this effort was provided by the r/retirement community On Reddit, where its 83,000 members frequently discuss these topics.
This is what we were informed.
'I've put in tremendous effort throughout my entire life.'
Gail Randale’s strategy for enjoying her retired life heavily involves avoiding difficulties.
“She stated, ‘I abstain from alcohol, I don’t smoke, we stay out of trouble so we’re not arrested or end up in jail,’ adding that we also avoid getting into disputes with others.’”
Randle enjoyed an extensive career in the Army and Army Reserve, where he served as both a colonel’s clerk and a general’s driver. He also ventured into property management and occasionally worked nights as a cocktail waitress. During his last 16 years of full-time employment, he ran a retail business. "An adult one," he specified. "Selling clothing for strippers."
In 2016, when she reached the age of 65, she decided to retire. She believed that she had earned it.
I've put in immense effort throughout my life, often juggling two or even three jobs," she stated. "Adding the commitment to the Army Reserves only made it more challenging.
Despite all her efforts, Randle has managed to save just $2,000 for her retirement. Her sole income source is a small annuity providing roughly $500 monthly, which will cease in a few years.
Thus, Randle and her partner, Mike DellaVolpe, aged 82, primarily rely on Social Security for their survival. Their total monthly benefit amounts to approximately $2,400.
The funds stretch further than you'd imagine.
Before retiring, Randle mentioned, "I implemented several changes to simplify my future." She explained, "We decided it was necessary to acquire a new vehicle and refurbish our swimming pool." This year, she successfully cleared her mortgage of $82,000 for her residence in Clearwater, Florida.
She has two adult children who are self-sufficient. Both she and her companion like to live frugally.
“She mentioned that they are quite thrifty,” she explained. “Whenever they see those menu options, they think, ‘This is outrageous. There’s no way we’ll spend that much when we could easily cook something nicer ourselves.’”
During their most recent outing for dinner, Randle remembered saying, "I ordered a small pizza for $11, and Mike went for an Italian beef which also cost $11." The total amount they paid came to $23.
“She mentioned they have a spot they visit for breakfast. It’s run by Greeks, so you can be sure it’s excellent, with the meal costing $6.50.”
'I never intended to age.'
Surviving on Social Security is one challenge. Thriving comfortably is an entirely different issue, as Alden and Dena Swartz have discovered.
Alden Swartz held a favorable position at a company dealing with packaging products, where his role involved collaborating with a group focused on selling packaging machinery: "For instance," he explained, "anything related to producing a bottle of ketchup and ensuring it could be shipped safely."
In 2019, the company underwent restructuring, "and as a result, I was moved out of my role," Swartz stated. He decided to retire when he reached 64 years old.
Everything appeared fine. The Swartzes received more than $3,000 per month from their Social Security benefits. They resided in an impressive mansion: a 4,800-square-foot, burgundy brick Italianate gem constructed in 1859 located in Lafayette, Indiana. Having purchased it during a downturn in the real estate market, they invested substantial funds into refurbishments. Their regular mortgage payment amounted to $1,180.
Next, life intervened. The Swartzes discovered they were going to become grandparents for the first time. This joyful news came from South Korea.
Their daughter got married to a South Korean man and settled down there. Determined not to miss this joyous occasion, the Swartz family shifted their base to South Korea in 2019, making sure they were present for the birth.
The housing system operates quite distinctively in South Korea. Since the Swartz family was looking at staying for a considerable period, they opted to lease an apartment instead. For this arrangement, they needed to put down a deposit of $100,000, even though the monthly rent came out to just $900. In order to gather these funds, the Swartzes decided to sell their cherished house.
When the pair departed from South Korea earlier this year, they recovered their deposit; however, it amounted to $28,000 less due to the US dollar appreciating against the South Korean won.
When they came back to the United States, the Swartzes discovered that house prices in Lafayette had skyrocketed, and interest rates had become twice as high.
And when you put all these elements together," Swartz stated, "it becomes impossible for us to recreate what we originally had before we departed.
The pair had no choice but to lease. Currently, they are obligated to pay $1,800 each month for a more modest dwelling located in a less affluent neighborhood.
"I'm more concerned about the safety of the neighborhood than I am about the downsizing," Swartz stated.
For the relocation, the couple sold all of their furniture and has now equipped their rented place with affordable purchases from Facebook Marketplace. Nearly every item is second-hand.
Nevertheless, the Swartz family's finances appear uncertain. Their combined monthly income includes $3,890 from Social Security and $240 from two modest pensions. However, they spend at least $2,200 each month on rent and utility bills, which amounts to over half of their earnings.
To make ends meet, the couple needed to use their modest emergency savings fund. Although each of them has an IRA, they've refrained from withdrawing anything from these accounts, "since they're relatively small," totaling around $40,000 collectively, as Alden Swartz mentioned.
We'll need to decide this coming spring what course of action to take, otherwise I will keep depleting our savings," he stated. "Furthermore, I can't find any means to replenish those funds.
Swartz mentioned he might attempt to secure a part-time position at Starbucks. He and his spouse maintain a modest lifestyle.
We rarely dine out since we prefer our homemade meals," he stated. "Our travels will now focus solely on attending family gatherings." In previous times, this pair explored Europe and South America and even sailed through the South Pacific, however, those adventures won't be part of their plans anymore.
Swartz spent his childhood on a farm operating tractors, hence such hardships do not cause him much pain.
"I've led a fantastic life. I have an amazing family," he stated.
However, he blames himself for failing to amass a bigger retirement savings during his working years.
There isn’t anyone truly to blame for our present financial shift except myself," he stated, "since I knew I would never grow old.
'We really don’t require much.'
After 14 years of enjoying their retirement, Suzanne and Susie Leedy can confirm that it is indeed feasible to live on just Social Security.
In 2010, Suzanne left her position in the real estate sector. Susie, who works as a registered nurse, deals with multiple sclerosis and has received disability benefits since 2008.
They possessed some savings, yet neither individual owned a retirement savings account. Instead, they had a history of employment. Together, their monthly Social Security benefits amounted to $4,500.
"I am deeply grateful that our careers positioned us at the upper tier" of Social Security earnings, Suzanne Leedy stated. The typical benefit check amounts to about $1,900 .
After retiring, the Leedys resided in Alexandria, Virginia, which is an upscale, expensive suburb of Washington, D.C.
"My mother was 92 years old, and we realized that she needed to live with us because she couldn't manage on her own anymore," Suzanne Leedy stated. "At that time, I made up my mind to leave Northern Virginia" in pursuit of a more affordable place to live.
Suzanne's parents possessed a timeshare at Massanutton, a resort close to Shenandoah National Park. They chose to relocate there, and Suzanne's mother consented to join them.
Susie Leedy’s mother passed away one year following the relocation, and Mom died only two months after we moved. The partners came into possession of sufficient funds to purchase a house and permanently establish themselves in rural Virginia.
"As it turned out, it was precisely sufficient to purchase the house," Suzanne Leedy stated. They acquired it with cash.
The pair adapted to living within their new financial limits.
I believe travel was the first activity we had to eliminate," Suzanne Leedy stated. Susie was from England, and Suzanne had intended for her to experience "as much of the United States as possible." She mentioned, "We went on trips to the West Coast, visited Olympic National Park, things like that.
Leedy mentioned, "We also got rid of our second car. We recognized that whenever we ventured out, we were always going together."
She mentioned, "In the past, they would dine out perhaps once every seven days. However, nowadays, they prefer hosting friends at home for meals or visiting others instead. They believe this new routine has improved their diet quality significantly, plus added much more enjoyment."
Four years back, money became more strained for them after Susie suffered a stroke. Currently, the pair deals with continuous healthcare costs. Nonetheless, they manage to scrape by.
At a certain stage, you come to understand that I'm 79 years old," Suzanne Leedy stated. "We don't require much anymore. Our lives are quite pleasant, and we have plenty of wonderful friendships.
'I'll always have a place to stay'
Sheri Makasini’s experience with retirement might serve as a perfect example in textbooks, showing that numerous Americans find it impossible to live solely on Social Security benefits, even within the confines of a trailer park.
Makasini, who is 68 years old, had a house in an Florida RV park. However, her monthly Social Security benefit of $1,800 wasn’t enough for her to maintain ownership. The cost of renting the land where her home stood amounted to over $800 per month, not including the loan installments for the property itself.
She listed her mobile home for sale and succeeded in selling it even while taking time out for interviews with USA TODAY. After settling the loan, she will net around $12,000.
Makasini lives now with her daughter in Euless, Texas. Daughter Michelle Makasini makes a good living as a social media manager for the Hilton hotel chain.
I feel fortunate since she believes in taking care of her parents,' Sheri Makasini stated. 'This means I'll never end up homeless.'
Makasini dedicated her professional life to the airline catering sector. She began her journey in this field as Air 1 One among many new airlines that emerged and disappeared following the deregulation of the industry during President Ronald Reagan’s tenure in the 1980s. Later, she was employed by US Airways, American Airlines, and various other aviation companies.
In 2000, Makasini’s life trajectory was altered due to a divorce. She single-handedly brought up her daughter without receiving any form of child support. The turbulent nature of the aviation sector, marked by mergers and closures, led to periods of unemployment for her. This situation compelled her to use all her limited 401(k) retirement funds merely to make ends meet.
In 2012, Michelle Makasini gave birth to a child, and Sheri found herself grappling with the challenge of supporting her daughter along with her grandson. During this period, Michelle was making $11 per hour.
Sheri Makasini opted for Social Security as soon as possible when she turned 62.
I had no alternative source of income," she explained. "If I had waited until I was 65 or 67, it would've been around $2,100 to $2,200 per month. Currently, though, I receive about $1,600 monthly post-Medicare deductions: 'It’s not substantial.'
Michelle Makasini has proposed constructing an in-law suite for her mother on her land, but this might not happen for several years. Until then, Sheri Makasini intends to move to Missouri to stay closer to some of her brothers and sisters. Currently, she is awaiting placement on a waitlist for a senior citizen subsidy apartment. The rent for such accommodation would amount to approximately $800 per month, which equates to around half of her monthly Social Security benefit.
“She mentioned that merely surviving isn’t ideal. However, that’s how things stand at the moment.”
'I prefer not to dine out. I enjoy cooking.'
By the time she reached 64 years old, Patricia Douglas has gained extensive experience in surviving on Social Security and managing her budget.
At the age of 52, Douglas had to retire prematurely from his role as a medical analyst at a hospital in New Orleans due to heart issues. His monthly pension began at approximately $900.
It wasn't easy at the beginning," she remarked. "The paycheck was very small.
Currently, Douglas gets approximately $1,100 each month from Social Security disability benefits. When she reaches 65 next year, Douglas will start receiving her Social Security retirement benefits as well as the majority of the benefits that were intended for her late spouse. Her husband passed away in 2009.
She will feel prosperous at that time. To what extent, she isn’t sure; Douglas mentions she hasn’t managed to figure out how to use the Social Security website to check her benefits.
For the time being, she manages.
It’s difficult to understand how Douglas manages to meet all her financial obligations with just her $1,100 Social Security check having to stretch over her $1,000 mortgage payment. She relies on food stamps for assistance. Each day she dedicates about six hours volunteering at Catholic Charities, which compensates her modestly—approximately $100 per week along with some additional expenses.
“She mentioned that she looks out for anything that’s free,” he stated. "And if something isn’t completely free, it’s almost free." Douglas spends just ten dollars monthly on her internet service via a Cox offer designed specifically for lower-income U.S citizens. Her television setup includes a Roku device and she exclusively watches content that doesn’t cost extra. The exception to this budget-friendly approach is her subscription to Amazon Prime.
I prefer cooking at home rather than eating out," she stated. "Given that it's only me, I've reduced my portion sizes. A bowl of cereal satisfies me completely. Similarly, a peanut butter and jelly sandwich is enough for me.
'We earned $150,000, we also spent $150,000'
For Ken and Kathy Larson, a cozy retirement has revolved around scaling down.
The pair possessed a residence along the Fox River in Batavia, Illinois, which is near Chicago. His income reached upwards of $150,000 annually, including bonuses, courtesy of his work at Hewlett Packard Enterprise in the IT sector. The Larsons were frequent travelers.
"We earned $150,000, and we also spent exactly the same amount," Ken Larson stated.
Larson kept a calendar page from June 2019 pinned above his desk for amusement. This particular month marked when he intended to step down at the age of 65. On June 1st, as a joke, he penned "Company eliminates pension." Then, on June 5th, he added humorously, "Social Security put on hold by U.S." By June 10th, under playful pretense, he noted, "The firm lets go of Kayo," referring to himself with his work moniker. Finally, on June 15th, still in jest, he wrote, "Kayo calls it quits."
"It was incredibly amusing for all who passed by," Larson stated.
However, as the deadlines drew near, several of those lighthearted forecasts began materializing. His firm switched their workplace pension plan to a 401(k) system instead. The eligible age for Social Security retirement gradually increased. Even Social Security appeared less secure than before. Consequently, Larson rescheduled his intended retirement year to 2021.
His professional journey came to an end in late 2020. The organization chose to let go of one member from his group. Larson stepped forward; he was merely months away from retiring. His severance package bridged the financial gap between 2020 and 2021.
After that, the Larsons reduced their expenses by half.
They transitioned from their large riverside home to a more modest one situated on just about a third-acre located a few streets over. "There was no way I could maintain two acres of lawn during my retirement," Larson mentioned. As a result, their yearly property taxes were reduced significantly from $14,000 down to $6,000. Additionally, they decided to let go of one of their two family vehicles.
Ken Larson retired and is receiving his full Social Security benefits, while Kathy gets half of what her spouse receives as a spousal benefit. Together, they rely on approximately $5,400 per month—or about $65,000 annually—from their combined Social Security payments. Additionally, they receive several hundred dollars each month from supplementary sources like Ken's former employer’s pension plan.
The pair has around $800,000 saved up in their IRAs along with additional investment funds. Although they've taken out small amounts tentatively, they haven't been using this money as part of their regular income.
Starting from now, the Larasons intend to reduce their traveling.
We recently returned from Austin, Texas," Ken Larson stated, "where we attended my niece's wedding. The trip likely cost us around $1,500, which was manageable within our means. We were able to fit this expense into our budget.
'I'm completely fine'
For an individual moving from a lucrative career to a humble retirement, a Social Security check can make a significant difference.
Jean Hullihan served as an intelligence analyst for the federal government, where she earned a six-figure income towards the conclusion of her career. In 2023, upon retiring at the age of 67, she began receiving a monthly Social Security benefit totaling $4,200.
That's less than half of what Hullihan made in her role as an intelligence officer. She figured it wouldn't be sufficient to support herself.
“What I had read before retiring led me to believe that it wasn’t feasible,” she stated.
Hullihan sold her condominium in Northern Virginia and purchased a modest house in Louisville, Kentucky, close to two of her adult offspring. When she retired, she got into her Honda CR-V and headed toward her new residence, curious to see how her financial plan for retirement would fare.
When the initial Social Security check came through, Hullihan recognized that things were going well for her. The amount allocated each month towards her mortgage stands at approximately $980, which amounts to less than a quarter of her Social Security income. She also spends around $100 on utilities every month.
“A year and a week has passed, and I haven’t faced any difficulties,” she stated. “Whenever I hear someone say, 'I cannot survive on Social Security,' I wonder, why not?”
Hullihan earned sufficient funds from selling her condominium that she anticipates clearing her mortgage in Louisville within a few years.
She possesses a substantial retirement fund, yet she has not withdrawn any funds from it and does not intend to do so. Instead, she is considering placing this money into a trust with the belief that "Medicaid won't be able to claim it." However, under Medicaid regulations, she would first have to deplete her savings before becoming eligible for healthcare coverage benefits.
Hullihan is currently spending less money than when she was employed, which she believes is due to the more relaxed tempo of her retired life.
“I ceased purchasing clothing and footwear along with everything else I would typically buy,” she stated. “In the past, if I spotted a nice pair of shoes, I wouldn’t hesitate to purchase them.”
Twice weekly, she prepares dinners for her children and joins her friends for meals out from time to time. Her workload includes assisting a pal with a side gig for about ten hours each week; primarily done as a courtesy since financial gain isn’t necessary here.
The article initially appeared on USA TODAY: Can you retire comfortably relying solely on Social Security benefits? We posed this question to seniors.