How To Live Frugally On Social Security Only
“How to live frugally on social security”
According to the AARP Public Policy Institute, 24% of people over the age of 65 live in families where Social Security payments account for 90% or more of their income. Retirees who rely only on Social Security for their living expenditures are on very tight budgets with the average monthly payout at $1,523.
How To Live On Just Social Security: How To Live Frugally On Social Security Only
When seniors do retire, there are several discounts and benefits they may take advantage of, enabling them to enjoy luxurious lives on a budget. Take the appropriate steps to make the most of your advantages and live comfortably. Below are steps on how to live frugally on social security only.
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1. Take Your Social Security Benefits Later
Two reasons to rejoice in getting older are retiring from the workforce and starting to receive Social Security. Your monthly payments will be much larger if you wait until you reach your full retirement age, which varies from 65 to 67 depending on the year you were born, even though you can begin receiving Social Security at age 62.
For instance, if you begin receiving Social Security payments at age 62 even though your full retirement age is 67, your benefits will be 30% lower than they would be if you waited the extra five years. Wait to begin collecting if at all feasible until even after you have reached your full retirement age. You will obtain the highest Social Security payments if you wait to start receiving benefits until you are 70 years old.
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2. Consider Withdrawing Your Claim If You Had Filed For Social Security Benefits Early
Do you find yourself astonished by the true costs of retiring on Social Security because you took advantage of your benefits early? If you applied for Social Security within the last 12 months and want to raise your benefits, you can withdraw your claim and reapply at a later time. It’s crucial to keep in mind that if you decide to withdraw, you will be required to pay back all the advantages you have received up to that moment. However, in the long run, this can be advantageous if it allows you to maximize your Social Security benefits.
3. Make a Social Security plan On Survivor Benefits
How to live frugally on social security only? Plan your social security survivor benefits! If you are married, you should talk about how to maximize Social Security payments in the event that one spouse passes away. If the benefits are greater than what the widow or widower was receiving before one person passes away, they may choose to take the deceased spouse’s benefits rather than their own. Therefore, it makes sense for the spouse with a higher income to retire later so that the surviving spouse can receive the maximum benefits when the household’s two Social Security payments are reduced to one.
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4. Relocate To a Region With Lower Living Expenses
For how to live frugally on social security only, look to relocating to a state with low cost of living. When your cost of living is reduced, your Social Security benefits will go further. If you reside in a pricey area, you might want to consider relocating to an area where you can survive solely on your social security check. Retirement-friendly seniors will find enough to do in cities like Tuscon, Arizona, and Reno, Nevada, as well as pleasant weather and low cost of living.
5. payoff Debt Before Retiring
It’s advisable to pay off all debts, including credit card balances and mortgages, before retiring in order to maximize your Social Security benefits. By doing this, you can concentrate on using your benefits to buy the things you need on a daily basis rather than spending them on things you already own.
6. Move To a State That Has Low Taxes
Washington, D.C. and the majority of states don’t tax Social Security benefits, but if you live in a state with even lower taxes, you can stretch your benefits even further. According to AARP, Alaska and New Hampshire don’t tax either sales or income, and while Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming do tax sales, they don’t tax state income or pension income.
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7. Choose a Roommate
Looking for how to live frugally on social security only? Get a roommate! Sharing living costs with a housemate or roommate is a terrific way to stretch your money further and can also help you avoid the loneliness that often comes with retirement. According to a SmartAsset survey, renters who split a two-bedroom with a roommate save more than $800 a month compared to those who rent a one-bedroom on their own in several big cities. Having a roommate can reduce your utility, internet, cable, and energy costs even if you do not rent.
8. Benefit from Free Entertainment
You can be busy and have fun without using any of your Social Security benefits. To pass the time during the day, visit a museum that offers free entrance or get a book from the library. Additionally, you can go to open mic nights at a nearby coffee shop or theater, which frequently have free entry. Attending free outdoor concerts, attending a lecture at a nearby college or institution, and attending book readings are additional free activities.
Of course, it’s possible that these advantages won’t be realized until after the coronavirus-related state closures have been entirely lifted.
9. Invest in An AARP Membership
The annual membership charge for AARP is $16, but the savings can more than cover that expense. In addition to typical senior discounts, AARP members receive savings on dining out, entertainment, shopping, and community memberships.
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10. Move To a Retirement Community
For how to live on just social security check, consider moving to a retirement community. If you’re looking to relocate, it can be less expensive to move into a retirement community rather than to buy a new house nearby. According to retirement coach Sara Zeff Geber, they are frequently less expensive than the nearby homes on the market that are available to everyone. Additionally, it’s simpler to socialize with individuals your own age when you live in a retirement community. Though some upscale retirement communities can be very pricey, you need to be realistic about what you can truly afford with your Social Security payment.
11. Visit Eateries That Offer Discounts For Seniors
Living off of Social Security will put you on a relatively tight budget, but it’s acceptable to go out to eat occasionally, particularly if you go to a place that gives seniors a discount. For diners 55 and older, many well-known restaurants provide discounts of up to 25%, including on takeout orders. According to TheSeniorList.com, places like Chili’s and Uno Pizzeria & Grill give seniors discounts of 10% and 25%, respectively, every day.
12. While You Shop, Save
Your Social Security check doesn’t have to be significantly reduced in order to spruce up your outfit. According to TheSeniorList.com, many large businesses give senior citizens discounts: Banana Republic offers customers 50 and over 10% off, Kohl’s offers customers 60 and older 15% off every Wednesday, and Ross offers senior citizens 55 and older 10% off on Tuesdays.
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13. Don’t Overpay For Prescriptions
Do not overpay for prescription drugs if you’re looking to live frugally on social security only. The price of medications can quickly mount. Always choose the generic version of a prescription when it is affordable to do so. And to get discounts and rewards, think about enrolling in a prescription membership program wherever you purchase your medication. For instance, the Rite Aid Rx Savings Program offers members discounts of at least 15% on medications, and a 30-day supply of the majority of generics costs just $9.99 when using the program.
14. Get Outside
Taking a daily walk or trek is a simple and cost-free method to keep active. Make a morning stroll through your neighborhood a regular part of your day, or go hiking on a nearby trail to take in the local scenery. By going on treks when most people are at work, you can avoid the stress of navigating crowds and instead focus on the solitude and tranquility of the outdoors.
15. Volunteer
Giving to those in need is among the best methods to make yourself feel good. Give your time freely to a cause that matters to you; it’s a way to spend your time that also helps others.
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16. Return To School
How to live frugally on social security check? Go back to school. Because many local schools and universities waive tuition for citizens 60 and older, seniors can enroll in college courses for no cost. Even if your local university doesn’t provide tuition assistance, you might be able to take free trial classes. This implies that while you may attend all lectures and classes, you won’t get credit for them. You can avoid dealing with tests and homework via auditing, which is a perk.
17. Try a New Workout Or Gym Class (For Free)
Although you might not have had time to go to the gym frequently when you were employed, there is no longer a reason not to be active. The free SilverSneakers program, which allows seniors access to more than 14,000 gyms and fitness facilities nationwide, is open to Medicare participants. In addition to having full access to the gyms that participate, SilverSneakers members also get complimentary classes at the gym and elsewhere. You can practice yoga for the first time or dance your way to health without spending a dollar.
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