Retirees with $2k/month Social Security income and $50k savings worried about outliving savings
From Yahoo Finance: 2025-06-17 07:34:00
The average annual spending for U.S. households of those 75 years and older was $53,481 in 2022. Concerns about outliving savings are common with a modest $2,000 monthly income from Social Security and $50,000 in savings. Guidance is sought.
Using a Fidelity retirement calculator, 79-year-olds can make nine yearly withdrawals of around $6,700 with savings invested at a 5% annual rate of return. The average monthly retirement benefit for January 2025 was $1,976 per person, almost $4,000 for a couple, according to the SSA.
Consider downsizing to reduce expenses like property taxes, utilities, and upkeep. Renting out a spare room or joining a home-sharing program can supplement income and provide companionship. Medicare provides essential coverage, but supplemental insurance can be costly.
To stretch a $2,000 monthly budget, create a monthly budget and cut discretionary spending. Track expenses, differentiate between needs and wants, and use free budgeting tools. Local assistance programs can help reduce expenses. Build an emergency fund to cover unexpected expenses.
Retirees are advised to keep 12 to 18 months of living expenses in their emergency fund. Being proactive about savings, optimizing home and healthcare costs, and controlling daily expenses can help seniors living on a tight Social Security income avoid running out of money in retirement.