I’m 65, have $120K, get $1,700 in Social Security a month with $3,900 monthly expenses. I want to know if I can get by

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I’m 65, have $120K, get $1,700 in Social Security a month with $3,900 monthly expenses. I want to know if I can get by

I’m 65, have $120,000 saved, collect Social Security of $1,700/month — but monthly expenses total $3,900. How can I make sure money doesn’t run out without sacrificing lifestyle?

At age 65, a $120,000 nest egg isn’t going to produce as much income as you might hope.

You’d only be able to withdraw $4,800 annually ($383 a month) from your retirement savings — assuming you followed the 4% rule. That rule limits withdrawals to 4% of your nest egg each year to ensure your money lasts 30 years.

Add a $1,700 Social Security check to that and you have about $2,000 to cover your stated

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each month — about $1,900 shy of the $3,900 you need, not including emergency medical bills and expenses.

Factor in taxes, and you’re in trouble. In fact, if you take this much money out of your savings, your money would only last 5 years if your investments earn 7% and you’re in the 22% tax bracket.

You need to

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another solution. Here are some options.

If your retirement spending needs are higher than your income, consider increasing your income with a part-time job, if not a full-time job.

You can collect Social Security benefits while you’re working, but if you haven’t hit the full retirement age of 67, the government can claw back your benefits. In 2025, you’ll

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$1 in benefits for every $2 earned above $23,400 if you won’t reach FRA all year.

The good news is that if you earn too much and lose some or all of your Social Security benefits, this is temporary. Your payment will be recalculated after you hit full retirement age.

So, working can help you in two ways, by providing you with a livable income and potentially giving your Social Security benefits a boost when you reach full retirement age.

Read more: Jamie Dimon issues a warning about the US stock market — says prices are ‘kind of inflated.’

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If you’re a homeowner you may be able to tap into your

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to generate cash flow — for example, through a reverse mortgage or even selling your home and downsizing, investing the difference. Alternatively, you may be able to find a tenant or roommate to help pay rent.

You may have to reduce your spending regardless, but cost-cutting will be essential if a job is out of the question and you can’t dip into home equity or generate additional income.

Story Continues

Some people manage to get by on Social Security alone, but it means a less comfortable, more frugal lifestyle. The Social Security Administration

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that 39% of American men and 44% of American women get at least half their income from Social Security.

Meanwhile, for 12% of men and 15% of women count on Social Security to provide 90% or more of their income — not ideal as the benefits are intended to

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40% of pre-retirement income at most.

If you have to survive on Social Security, cost-cutting may be easier if you make one or two big changes, like moving to a cheaper place rather than reducing lots of discretionary spending. One big cut can be easier to sustain than many small cuts.

Consider working with a financial adviser to explore all your options and help you make the right decisions going forward. An adviser can help with your budgeting and may even identify potential income sources you’ve missed.

It may be hard to make the numbers work in your situation, but it’s worth the effort. By finding more income and reducing your expenses, you can ensure that you still have the security you deserve.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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#120K #Social #Security #month #monthly #expenses

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