The moment we apply for retirement in the United States is something really important. From then on, the citizen in question will only collect a Social Security check as a monthly payment, which completely changes the budget. Still, there are ways to come up with enough money to live a very comfortable life in the golden years.
In addition to maximizing Social Security checks, the one thing we should always do before retirement is save. And for those, an IRA or 401(k) pension plan may be the best possible option. Thanks to these types of pension plans, the retired American’s life is much easier and more comfortable. Also, many people wonder if a retirement of $4,500 per couple and a good IRA contribution is enough to live on.
All this will depend on how we organize ourselves in our retirement years. For this, there are certain tips that will allow us to live in the best possible way. Remember that the Social Security payment arrives every month, so from there we can begin to create a budget that will give us a good life and spend our years of rest in a peaceful way and with as little stress as possible.
How to live on Social Security retirement and IRA money?
First of all we should always keep in mind that the more we get from both Social Security and IRA or any other pensioner’s plan, the better. Maximizing these two aspects should be one of our priorities when putting together a pension plan. Still, there are more tips to keep in mind. If we apply all or almost all of these tips we can have a comfortable and peaceful life.
These are the tips to follow:
- Eliminate all debts before retirement. Any debt should be eliminated before retirement. This has a simple explanation. While we are working we can collect a little more, which makes debts easier to pay. If we collect Social Security we will have a smaller budget and, therefore, it will be more difficult to pay debts.
- Develop a monthly budget. Based on what Social Security sends us each month, we should draw up a monthly budget. And only if it is enough should we withdraw money from the IRA or any other pensioner’s plan.
- Consider moving to a cheaper state. There are some states that are cheaper than others to live in. Remember that your Social Security retirement check will not change if you move. So if you change states, you could have a bigger budget because of this move.
- Cut unnecessary expenses. In addition to making a monthly budget, you should also consider what expenses are absolutely necessary in your day-to-day life. This is the only way you will be able to live your retirement in the best possible way.
With this in mind, we will know if the budget of $4,500 per month per couple is enough to live well. Of course, remember that if you have a pension plan you can always withdraw money when you need it. But what is true is that you should set your budget based on the money you can count on each month.