Many retirees live on what’s essentially a fixed income. While that may seem challenging, if you have access to around $70k per year, you can typically retire comfortably with some degree of ease. You just need to make wise choices, ensuring you’re positioning yourself for long-term success. If you want to retire well on $70k per year, here’s how to make it happen.
Choose the Right State for Your Retirement
Every state has a unique cost of living, causing some to be far more expensive than others. By choosing a state with a lower cost of living, your money goes further, allowing you to be incredibly comfortable in retirement.
Based on figures from GoBankingRates, there are only 10 locations within the United States where $70k may not support a comfortable retirement. However, by choosing one of the least expensive states in the country, you’ll have a significant amount of disposable income.
For example, the cost of a comfortable retirement in Mississippi is just $49,542 per year. If you have access to $70k, that gives you an extra $20,458 annually to spend on pure wants. That could help you take your retirement to the next level.
Downsize Your Home (and Choose the Right Neighborhoods)
Downsizing your home can potentially be a great way to keep your costs down. If your current house is larger than you require and you’ve built up some equity, moving to a smaller property could reduce your mortgage payment or, if you have enough after the sale, let you pay for a home entirely in cash. In either case, you’ll free up money in your budget.
You can take this even further by choosing the right neighborhood. Many 55+ communities have homes that cost less than similar properties in non-age-restricted areas. Plus, you’ll be near other retirees, giving you access to a potential social circle. In some cases, the neighborhoods (for a fee) even handle lawn care and similar tasks, reducing your burden significantly.
Have an Emergency Fund at the Ready
While you may not have to worry about sudden job loss anymore, that doesn’t mean you don’t need an emergency fund. By keeping money set aside for the unexpected, you won’t have to tap your retirement account to handle issues like surprise car or home repairs and large medical bills.
The common recommendation is to set aside three to six months of expenses in a savings account for emergencies. Then, you may also want to have targeted savings accounts for known upcoming costs that would otherwise be hard to shoulder, like a new roof or vehicle purchase. That way, your emergency fund is used purely for the unexpected, giving you a helpful safety net during your golden years.
Take Advantage of Senior Discounts
While it’s possible to live comfortably on $70k a year without being overly frugal, that doesn’t mean that you should bypass any available way to save. Many stores and restaurants offer senior discounts, usually to those age 65 and older. By figuring out which locations provide those kinds of deals, you can save on everyday items and experiences. Plus, could you stack the price reduction with coupons, rebate apps, and cashback programs, allowing you to spend even less.
Do you have any other tips that might help someone retire well on $70k per year? Share your thoughts in the comments below.
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