Three Ds for Happily Retiring on a Shoestring
Increase savings, free up space, and change your perspective.
While everyone can use the advice I will share in this article, it is especially useful for those retiring on a shoestring budget. Since defining a “shoestring budget” is subjective, I will share my definition based on some important facts.
Many studies show that most of us will retire on a shoestring. According to USA Facts only about 35% of people aged 65 and older have more $100,000 or less in retirement savings. Another 6.2% of people aged 65 and older have between $100,000 and $250,000 in retirement savings.
And the median savings (not retirement accounts) for ages 65 to 74 is a low $8000. For those 75 and older the median savings is $9300.
The median household retiree income is $50,290, but the median individual income is $29,740.
My definition of retiring on a shoestring is simple: you have less than $250,000 in total savings (retirement plus liquid savings) and an individual income of $29,740 or less.
Contrary to most of what is written, enjoying a wonderful retirement on a shoestring budget is still possible. And leveraging the three Ds will help.
