No. of Recommendations: 4

I agree with you. To totally exclude SS from expected total income seems a bit over the top.

To assume that "retirees need enough income to cover 70% of their pre-retirement income" -- without SS -- seems to me to be untrue, unless they try to live the same way they did before!

At retirement, hopefully, people will realize that their way of life will change such that they will cut back on some expenses, so they can live fairly well far more cheaply than before. Hopefully, their kids will be through college and out on their own -- or they should be! And, if they are no longer going to work someplace, expenses associated with that (clothes, travel, dues, etc.) should be less, too.

We've been retired for 20 years now, and, contrary to all advice, we started SS at age 62, thereby losing some of all future income from that. (There were reasons why that all had to happen, but that's an aside.) We also still have a bit left to pay on our mortgage, and we obviously pay property taxes. Medicare covers 80 percent of some things, but we also pay extra for Medigap to hopefully cover the other 20 percent. Hopefully. (Dental costs are another issue!)

We don't expect to ever move; we love it where we are, and those "retirement home" situations make us shudder! Too many people around, for one thing. As I have said before, we enjoy peace and quiet, and our privacy. It's also a helluva lot cheaper to live where we do, even with a mortgage, taxes, maintenance, etc. Our home also provides for virtually all of our living needs on the one main ground floor, which can help as you age.

All in all, we do okay, and I imagine our friends think we're better off than we really are. However, there are reasons why we do "okay". We live a quiet life, by choice. We don't smoke or drink, don't care to go to bars or costly shows, and generally try not to spend frivolously. My wife is also an excellent shopper and saves a bundle on groceries by perusing the weekly fliers and buying what we need from whichever chain store in our area offers the best prices, which can save plenty.

It can be done.

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