Where Can I Live On Social Security Alone
Where can I live on social security alone is a common question, even for those with more than just social security.
- There are several good reasons to choose to live on social security only.
- Social security is your only income
- you want to live cheaper so you can travel
- you want to leave a legacy
In 2022 the average social security benefit was $1550.48. Many people beleive they can’t afford to retire. Most people don’t look at all of their options.
Many retirees retire to foreign countries to live on their social security benefits. Thailand, Peru, and The Philippines are among the cheapest place to live.
If you are going to retire on social security only and want a quality life, it’s easier than you may think. But you’ll need to live frugally on Social Security.
Where Can I Live On Social Security Alone
Later I will show you how to make a retirement budget.
Define: Living On Social Security Only
Living on social security only is what it sounds like. Social security is your only income.
Living on social security can be a miserable experience, or it can be an exhilarating experience. It’s all in what you do.
Do Your Homework
I have a friend that retired to Vietnam, where the consumer price, including rent, is 60% lower than in the United States.
You read that correctly; it costs less than half to live in Vietnam compared to the United States.
Research is essential—study where you want to live. Know what you are getting into before you make a move.
I recommend you visit the country several times, if possible, as part of your research,
In most countries, there are expat communities willing to share their knowledge with you. Contact them and make some contacts and learn what they know.
Beware Of Places You Read About
So often, I see someone peddling an idea, and I wonder if they have even thought about what they were saying or maybe it’s a typo.
To make a point, I was reading about why Abilene, Texas, was supposedly a great place to retire on social security only.
For someone who has had good jobs all of their lives and receives a sizable social security benefit, yes, it would be a great place to retire.
But what about the guy that receives a social security check of $1800 a month or less, and that’s all of his income? Abilene is not a good match for him. According to numbeo, rent for a one-bedroom apartment in town is $600 a month, leaving this retiree with $1200 a month or $300 a week to live on.
So far, all he has done is pay the rent, which doesn’t include electric and other utilities, groceries, car payments, insurance, or anything else. As you will see in the section budgeting your retirement, all these things are needs. According to the 50/30/20 budget, This retiree has too little money to live in Abilene, Texas. Even if he lives frugallyEven if he lives frugally his income isn’t enough.
Budgeting Your Retirement
Before you move, know what you can afford.
Budget your retirement. A standard budget is 50/30/20. It’s my favorite because it’s easy to use.
50% For Needs
This is a simple list of examples and may vary from household to household
- Monthly rent/mortgage
- Eectricity and gas bills
- Transportation
- Insurances (for healthcare, car, or pets)
- Minimum loan repayments
- Basic groceriesl
30% For Wants
- Dining out
- Clothes shopping
- Holidays
- Gym membership
- Entertainment
- Entertainment subscriptions (Netflix, HBO, Amazon Prime)
- Groceries (other than the necessities)
20% Savings
- Use your savings to meet your short and long-range goals.
Do The Math
If your benefit is $1,500 a month, your budget will look like this
50% $750.00 Needs
30% $450.00 Wants
20% $300.00 Savings
Can a person live on this? Yes, it may be a no-frills living, but in most cases, you can’t live on your social security benefits only in the United States, but you can live on $1500 a month in several countries. Peru, Vietnam, Philippines, Thailand, and more.
You can retire overseas and save money.
How To Do The Research
- First, make your budget using the method I showed you.
- Go to https://www.numbeo.com and start looking for countries you are interested in living in.
- Study the cultures and laws reading on the internet and library
- Find expat communities in the area you would like to move to. Learn what you can.
- Visit the country before you move
If You Need A Starting Point For Your Research
Thailand Chile Vietnam Cambodian
Peru Mexico Belize Colombia
Philippines Costa Rica Malaysia Argentina
Conclusion
Where Can I Live On Social Security Alone is a good question? If you are willing to move to a foreign country and do your research and make contacts with other expacts, you may find this an exciting and fulfilling experience.