Any United States citizen familiar with the Social Security system knows that living on just a retirement check is not a good idea. While it is certainly possible, collecting just a Social Security check as the sole source of income may not be enough.
And that’s why having as much savings as possible before you reach retirement is critical if you want to live as well as possible. And that doesn’t mean that everyone has to save $10 million before applying for Social Security. Everyone has a different lifestyle, but it’s true that there is a general rule for everyone.
Saving $1.5 million before retirement is possible if we know how. It doesn’t just matter how much money we take in each month, which will also influence our Social Security check. What we do with the money we receive each month will also have a direct impact.
And that’s why we should think about whether or not $1.5 million is enough for us. And we should also consider how we can reach that figure as comfortably as possible. Do you have savings for retirement?
Can I live through my Social Security years with $1.5 million saved?
The answer to this question depends on many factors. The first is retirement age, as it will directly affect the monthly check. Most American citizens do not have a huge monthly Social Security check. That is why it is so important to look for an alternative source of income.
Likewise, it is also important to save and having $1.5 million will make retirement much easier. Considering that the average Social Security check is about $1,700 per month, having $1.5 million saved will make living well into retirement.
In many cases, it will not even be necessary to have a high benefit, since only the money from savings will be enough. In order to be able to do so, it is necessary to meet several requirements, since if we reach retirement and apply for Social Security without controlling everything, we may have problems.
Tips for living on $1.5 million saved in retirement
In order to be able to live with the money we have saved, we will have to meet several requirements. It is not necessary to meet all of them, but most of them:
- Not to have debts. This is very important. If we have debts when we start collecting Social Security, we will have a lot of problems. This is true even if we have a lot of money saved. Entering retirement debt-free is critical.
- Do not spend money on useless things. We must save money every month, so we can’t spend money on things we don’t really need.
- Think about happiness. While spending Social Security money on useless things is something we should avoid, we should also think about happiness. If something makes you very happy, you can invest your money in it.
- Maximize your Social Security check. Another key point is to get the largest Social Security payment possible.
This way we can live on that saved money without the need for a lot of stress in life. And remember that it is not necessary to take in a lot of money each month, but to spend as little as possible.