My sister never married. During her working years, she saved every penny she could and initially invested in certificates of deposit. Gradually, as her savings increased, she invested in lower risk stocks. She received a very modest pension of less than $400 per month, and receives social security. Recently, she transferred half of her stock investments into an annuity that guarantees $20k per year. Combining her annuity payments with the modest pension and her Social Security benefit makes it possible to be financially self-sufficient. She also retains the other 50% of her savings in low risk stocks. In her situation, saving by frugality and discipline for many years were the path to financial security in the retirement years.
Denise, that’s wonderful. My grandfather and my father both made quite a bit through their investments. It’s a good plan. My bank’s financial adviser clued me in to a lot of ways to make my money work for me.
I’m retired and was widowed in my early 60s. I remarried recently and we are lucky to have retirement and social security. However we both chose to take our retirement for just ourselves rather than share with a spouse because we were single then. When one of us dies the other spouse will struggle.
Not a simple answer to your question. So much depends on each person's circumstances - upbringing, where they live, health - for example. I have been blessed with parents who passed on good values and habits concerning money, and a husband who shares same. We are both retired now. Health is not perfect but manageable so far. We both have social security, pensions, IRA's, savings and small investments in stock market. Our house is paid off and we live in an area that has a decent cost of living. Also both our families live close by. Still I worry a little about what the future may hold.
I volunteered as a tax preparer this year for low-income elders. I live in a high-cost-of-living area and saw many seniors who are living on shockingly low income, mostly women who were divorced, widowed or never married. So many of the studies done on retirement look at the numbers in aggregate and ignore solo women so the picture looks better than it is.
I'm convinced communal living is a potential solution. I love your tiny house idea!
This is very similar to my story. Thank you so much for describing what many of us face upon retiring. Trying to figure out how to live on maybe 1/3 of what you actually are spending and unable to retire at age 75. Good luck!!!
I will be 65 next February. I was widowed in 2019. My late husband had been a university professor and in state retirement pension funds from the time he was a postdoctoral fellow after getting his Ph.D.
So right now, I am getting a survivor pension which is about what a SS benefit would be. Presently, I am living off savings and the pension while I (1) move to a new area, (2) into a rental house, (3) so I can sell my house and finish a Doctor of Ministry degree, allowing me to go back into (paid) parish Ministry after many years out of it.
I am (re)starting a career at "retirement" age. So the plan is to work a few more years, holding off on collecting Social Security until I am truly ready to retire. We had also set up various retirement accounts, including a 403(b) for my late husband and my career as a pastor provides a small pension. I think I will be able to live simply but well.
In Canada, we can get two different payments from the federal government. There's Old Age Security (OAS), which kicks in at 65 for all citizens & legal residents who have been here at least 10 years. It pays a maximum $700-800 per month. There's also Canada Pension Plan (CPP), which both employers and employees pay into (through mandatory paycheque deductions). You can start taking full payments at age 65, or you can take a reduced pension as early as 60. The average payment at 65 is about $900 -- some people will get more, some less, depending on how long they worked, how much they put into the plan, etc.
My husband & I are very fortunate in that we both have company pensions -- defined benefit pensions, at that, which are increasingly rare. If you joined the same company today (we both worked for the same company), they'd offer you a defined contribution pension plan, in which you make more of the investment decisions and assume more of the risk. I lost my job when I was 53, but was able to take a reduced pension at 55, and likewise, my husband lost his job at 56 and began taking his pension after his severance ran out. Our pension payments would have been a LOT more if we'd been able to keep working there until we were 65, or even 60, but we still do pretty well, particularly when you add in the CPP payments & his OAS (so far, so good...!). We both started taking our CPP at 60, and my OAS will kick in early next year when I turn 65. I'm very grateful we have our company pensions, because it would be pretty tight if we had to rely on CPP & OAS alone. There are some survivor benefits, but they aren't as much as the full payments.
You can also save for retirement on your own with an RRSP (registered retirement savings plan), which I think is kind of like your 401ks? You have to convert it to a RRIF (registered retirement income fund) by age 71, and start drawing those funds down. And you can designate a specific beneficiary in the event of your death.
I do not expect I will get much if any inheritance from my parents when they're gone. On my husband's side, it's complicated. His dad gave us a chunk of money before he remarried, to help us with a down payment on a house, and gave the family home to my husband's brother. He died a few years ago. His widow (my husband's stepmother) inherited his estate, and when she dies, I believe her estate is supposed to be split between my husband, his brother and her four children. Let's just say we're not counting on anything from there either.
Thank you for all this information. It's really helpful to know what's going on in other places. It sounds like you and your husband are doing all right.
My husband died the month after I turned 65 but was still working, and somebody said if I waited to collect my widow benefits until after I reached retirement age (in my case 66-1/2) I'd get more money than if I started collecting right away. I'll turn 70 this year and finally stop working at a job I've loved, but which is implementing new technologies I'm not excited about learning so that seems like a good time to bow out!
Unfortunately, I always made more than my ex- husband so no widow’s benefit for me. With no other resources I must make do with Social Security. I get about 1680 or so a month. I managed to get into public housing so my rent is $404/month.
I didn’t apply for LIHEAP because I heard the government was going to end the program. I make no other income. I just don’t pay medical bills. I’m not going to die because I paid doctor bills. Doctors are not underpaid and poor. Hospitals certainly aren’t going broke, especially at Northwestern Memorial Hospital here in Chicago.
I also don’t subscribe to a lot of streaming channels. I don’t go out much either. I qualify for Extra Help paying for Medicare. I’ve made it a focus of my life to find out what benefits I can get, especially free ones. And I apply.
I have some younger friends who help me with unexpected expenses, such as my recent costs for nursing my sick cat, then having him euthanized. I could eventually take care it myself but it would be asking the vet for a lot of patience. I will still owe her $82. But that’s how my life has always been. I never made a lot of money because I worked in book publishing, which didn’t pay well. It was really important to me to at least like what I got paid to do. Because of having ADHD, although I never knew it during my working life.
Saralyn, thank you sharing your story. It is so hard sometimes. I'm very sorry about your cat. I'm like you. I did not want to spend my life doing work that I hated. When I had to, I did, but I got out of it ASAP. So we didn't get rich. It's okay.
Well, I’m pretty fortunate at this point. I’m 65, retired and married. So we have two Social Security payments coming in. But the big fortunate event for me was working in corporate America where I had a 401(k) from the time I graduated college until I retired. Even back when I started working there were rumors SS would not be around when I retired so I maximized my contributions to the 401Ks and they all had a company match.
Now that we are retired Social Security IS still around and we live on it, using the retirement account for fun trips and extra extravagant expenses (new golf clubs) ☺️
I just turned 50, and am not sure how solvent Social Security will be by the time I’m eligible for it - but have gladly paid into it since I started working and of course fully support the safety net concept.
I’ve never been married and have managed to tread water decently thus far, putting 10% into a retirement plan and building a bit of equity in a very small condo (with hefty fees!), but my career is now on the chopping block with the winds of current events….and the future seems largely terrifying. But I know I need to be more proactive about some of these things.
Talking about a person's money is always sort of a touchy subject. I am grateful that I have both my pension and Social Security and live pretty comfortably, I never even thought about what my finances would be when I retired while I was working. I mean, because I worked seniors, I saw people struggling to live on Social Security alone, but somehow that didn't relate to me and my future. I think that those nearing retirement age to start looking into what they would be living on is a little late and very sobering. This is a topic that should be taught in schools but not just one class but be drummed into students at all ages. I don't remember ever hearing in classes that I should be planning for my financial golden years. What I did learn about it was from my parents who had gone through the depression and lived frugally, never going out to eat or movies and free spending. My dad was the sole worker bringing in money and mom stayed home and worked hard as a homemaker...let me tell you that when they pasted away, my siblings and I were shocked at what we each inherited because of what they had saved.
My parents were the same way. They didn't spend anything extra but left us quite a bit when they died. I agree that people should be taught about money in school. Most of us are financial idiots. I really didn't plan for my senior years. Of course, I thought Fred would be with me, and he was a big planner. I am grateful every month to the City of San Jose Retirement Fund.
My sister never married. During her working years, she saved every penny she could and initially invested in certificates of deposit. Gradually, as her savings increased, she invested in lower risk stocks. She received a very modest pension of less than $400 per month, and receives social security. Recently, she transferred half of her stock investments into an annuity that guarantees $20k per year. Combining her annuity payments with the modest pension and her Social Security benefit makes it possible to be financially self-sufficient. She also retains the other 50% of her savings in low risk stocks. In her situation, saving by frugality and discipline for many years were the path to financial security in the retirement years.
Denise, that’s wonderful. My grandfather and my father both made quite a bit through their investments. It’s a good plan. My bank’s financial adviser clued me in to a lot of ways to make my money work for me.
I’m retired and was widowed in my early 60s. I remarried recently and we are lucky to have retirement and social security. However we both chose to take our retirement for just ourselves rather than share with a spouse because we were single then. When one of us dies the other spouse will struggle.
Not a simple answer to your question. So much depends on each person's circumstances - upbringing, where they live, health - for example. I have been blessed with parents who passed on good values and habits concerning money, and a husband who shares same. We are both retired now. Health is not perfect but manageable so far. We both have social security, pensions, IRA's, savings and small investments in stock market. Our house is paid off and we live in an area that has a decent cost of living. Also both our families live close by. Still I worry a little about what the future may hold.
I volunteered as a tax preparer this year for low-income elders. I live in a high-cost-of-living area and saw many seniors who are living on shockingly low income, mostly women who were divorced, widowed or never married. So many of the studies done on retirement look at the numbers in aggregate and ignore solo women so the picture looks better than it is.
I'm convinced communal living is a potential solution. I love your tiny house idea!
You are so right. I agree that communal living may be a good way to make it work.
No!
This is very similar to my story. Thank you so much for describing what many of us face upon retiring. Trying to figure out how to live on maybe 1/3 of what you actually are spending and unable to retire at age 75. Good luck!!!
I will be 65 next February. I was widowed in 2019. My late husband had been a university professor and in state retirement pension funds from the time he was a postdoctoral fellow after getting his Ph.D.
So right now, I am getting a survivor pension which is about what a SS benefit would be. Presently, I am living off savings and the pension while I (1) move to a new area, (2) into a rental house, (3) so I can sell my house and finish a Doctor of Ministry degree, allowing me to go back into (paid) parish Ministry after many years out of it.
I am (re)starting a career at "retirement" age. So the plan is to work a few more years, holding off on collecting Social Security until I am truly ready to retire. We had also set up various retirement accounts, including a 403(b) for my late husband and my career as a pastor provides a small pension. I think I will be able to live simply but well.
Janee, I love that you are starting this new career now and that you have prepared well for the future. Enjoy every minute.
I'm nearing social security age. It'll have to do. It's all I'll have to live on. For now, I'll keep on working and praying my health stays good.
The big advice from aarp is to wait as long as you can to collect the maximum amount.
In Canada, we can get two different payments from the federal government. There's Old Age Security (OAS), which kicks in at 65 for all citizens & legal residents who have been here at least 10 years. It pays a maximum $700-800 per month. There's also Canada Pension Plan (CPP), which both employers and employees pay into (through mandatory paycheque deductions). You can start taking full payments at age 65, or you can take a reduced pension as early as 60. The average payment at 65 is about $900 -- some people will get more, some less, depending on how long they worked, how much they put into the plan, etc.
My husband & I are very fortunate in that we both have company pensions -- defined benefit pensions, at that, which are increasingly rare. If you joined the same company today (we both worked for the same company), they'd offer you a defined contribution pension plan, in which you make more of the investment decisions and assume more of the risk. I lost my job when I was 53, but was able to take a reduced pension at 55, and likewise, my husband lost his job at 56 and began taking his pension after his severance ran out. Our pension payments would have been a LOT more if we'd been able to keep working there until we were 65, or even 60, but we still do pretty well, particularly when you add in the CPP payments & his OAS (so far, so good...!). We both started taking our CPP at 60, and my OAS will kick in early next year when I turn 65. I'm very grateful we have our company pensions, because it would be pretty tight if we had to rely on CPP & OAS alone. There are some survivor benefits, but they aren't as much as the full payments.
You can also save for retirement on your own with an RRSP (registered retirement savings plan), which I think is kind of like your 401ks? You have to convert it to a RRIF (registered retirement income fund) by age 71, and start drawing those funds down. And you can designate a specific beneficiary in the event of your death.
I do not expect I will get much if any inheritance from my parents when they're gone. On my husband's side, it's complicated. His dad gave us a chunk of money before he remarried, to help us with a down payment on a house, and gave the family home to my husband's brother. He died a few years ago. His widow (my husband's stepmother) inherited his estate, and when she dies, I believe her estate is supposed to be split between my husband, his brother and her four children. Let's just say we're not counting on anything from there either.
Lori,
Thank you for all this information. It's really helpful to know what's going on in other places. It sounds like you and your husband are doing all right.
My husband died the month after I turned 65 but was still working, and somebody said if I waited to collect my widow benefits until after I reached retirement age (in my case 66-1/2) I'd get more money than if I started collecting right away. I'll turn 70 this year and finally stop working at a job I've loved, but which is implementing new technologies I'm not excited about learning so that seems like a good time to bow out!
Yes, you will get more if you wait until full retirement age. I'm so sorry about your husband.
Unfortunately, I always made more than my ex- husband so no widow’s benefit for me. With no other resources I must make do with Social Security. I get about 1680 or so a month. I managed to get into public housing so my rent is $404/month.
I didn’t apply for LIHEAP because I heard the government was going to end the program. I make no other income. I just don’t pay medical bills. I’m not going to die because I paid doctor bills. Doctors are not underpaid and poor. Hospitals certainly aren’t going broke, especially at Northwestern Memorial Hospital here in Chicago.
I also don’t subscribe to a lot of streaming channels. I don’t go out much either. I qualify for Extra Help paying for Medicare. I’ve made it a focus of my life to find out what benefits I can get, especially free ones. And I apply.
I have some younger friends who help me with unexpected expenses, such as my recent costs for nursing my sick cat, then having him euthanized. I could eventually take care it myself but it would be asking the vet for a lot of patience. I will still owe her $82. But that’s how my life has always been. I never made a lot of money because I worked in book publishing, which didn’t pay well. It was really important to me to at least like what I got paid to do. Because of having ADHD, although I never knew it during my working life.
Saralyn, thank you sharing your story. It is so hard sometimes. I'm very sorry about your cat. I'm like you. I did not want to spend my life doing work that I hated. When I had to, I did, but I got out of it ASAP. So we didn't get rich. It's okay.
This resonates so well for me.
Well, I’m pretty fortunate at this point. I’m 65, retired and married. So we have two Social Security payments coming in. But the big fortunate event for me was working in corporate America where I had a 401(k) from the time I graduated college until I retired. Even back when I started working there were rumors SS would not be around when I retired so I maximized my contributions to the 401Ks and they all had a company match.
Now that we are retired Social Security IS still around and we live on it, using the retirement account for fun trips and extra extravagant expenses (new golf clubs) ☺️
As I say we are very blessed.
Well done!
I just turned 50, and am not sure how solvent Social Security will be by the time I’m eligible for it - but have gladly paid into it since I started working and of course fully support the safety net concept.
I’ve never been married and have managed to tread water decently thus far, putting 10% into a retirement plan and building a bit of equity in a very small condo (with hefty fees!), but my career is now on the chopping block with the winds of current events….and the future seems largely terrifying. But I know I need to be more proactive about some of these things.
You were wise to build your own retirement plan. Who knows what's going to happen? I hope job stays safe.
Talking about a person's money is always sort of a touchy subject. I am grateful that I have both my pension and Social Security and live pretty comfortably, I never even thought about what my finances would be when I retired while I was working. I mean, because I worked seniors, I saw people struggling to live on Social Security alone, but somehow that didn't relate to me and my future. I think that those nearing retirement age to start looking into what they would be living on is a little late and very sobering. This is a topic that should be taught in schools but not just one class but be drummed into students at all ages. I don't remember ever hearing in classes that I should be planning for my financial golden years. What I did learn about it was from my parents who had gone through the depression and lived frugally, never going out to eat or movies and free spending. My dad was the sole worker bringing in money and mom stayed home and worked hard as a homemaker...let me tell you that when they pasted away, my siblings and I were shocked at what we each inherited because of what they had saved.
My parents were the same way. They didn't spend anything extra but left us quite a bit when they died. I agree that people should be taught about money in school. Most of us are financial idiots. I really didn't plan for my senior years. Of course, I thought Fred would be with me, and he was a big planner. I am grateful every month to the City of San Jose Retirement Fund.
Thank you, Birdy, and thanks to Julia. I wish I had been more aware, too. Suddenly I'm 73, and hey, what happened? :-)