Social security only

[gourdgirl]

I would like to speak with seniors on SS only who have managed to transition to full time van/RV life.  I have one year left at a decent paying job and want to be as prepared as possible.  I do not have a pension or a spouse.  It's just me and SS.  I do have a backup plan living near family in an active senior income-based situation but the waitlist is likely going to be 2 years.  In the meantime I don't want to wait to retire and I want to do some traveling while I'm still able.  I currently drive an HR-V and if I can make it work, I'd like to not switch vehicles.  That way I'm not dealing with a vehicle that can't be my daily driver when I stop traveling and I can still get out and so some short trips.  I plan to test it out this coming spring/summer.  I plan to try using it for sleeping but also get an SUV hatch tent or some other set up for daytime living (pop up screen room maybe).  I haven't gotten that part figured out yet but hope the experiments during spring/summer will help me figure out the best course.  
Please feel free to PM me.

 

[maki2]

With just social security income I would not have as much fun. Besides that I do enjoy my creative self employment work and the dollars I earn from it versus working for someone else other than myself and my own customers.

Of course if I was wealthy and had a large retirement income and did not have to live frugally I would very likely not bother with any self employment activities.

 

[rvwandering]

Welcome to the CRVL forums gourdgirl! Taking trial trips is an excellent way to find out what you need to be happy and comfortable. Everyone's finacial stituation is different but if you write down all of your expenses that will basically stay the same such as food, phone, medical expenses, etc. you should be able to see if your SS will cover them with enough left over for things like gas, an occassional campground stay, gym memberships, and other expenses that you may not have in a stationary dwelling.

To help you learn the ins and outs of these forums, this "Tips, Tricks and Rules" post lists some helpful information to get you started.

Most of our rules boil down to two simple over-riding principles: 1) What you post should provide good information (like your introductory post), and 2) Any response to someone else's post should make them feel glad they are part of this forum community.

We look forward to hearing more from you.

 

[MrNoodly]

Whether SS works depends on how much you get monthly, and that depends on your earning history. If you contact the Social Security Administration they can tell you what your payment would be, if you take early retirement of standard retirement.

Whether SS is enough also depends on how you want to live.

As for me, yes, SS has been enough, but I'm getting more than most nomads who've shared their numbers with me.

 

[Trebor English]

What I did was to keep on working until I was old enough to get medicare.  Health insurance for 62 to 65 year olds is not cheap as we have high mileage and have parts wearing out and failing.  When to start taking social security is really simple arithmetic.  The only problem is that the main variable, how many years until your death, depends on knowing when you are going to die.  If you are 62 with a life expectancy of only 3 more years, retire now.  Waiting until 66 to get a higher benefit won't be advantageous if you don't make it past 66 by enough years to make up for not taking it earlier.  If you start taking it sooner and live long then you have more years of collecting at a difficult lower rate.  The advantage is you get to live longer and collect longer.  In my opinion more years of vacation makes up for a lower total take amount. 

I have an older, paid for, high mileage, mini-van.  The social security I get is about $2,000 per month.  My expenses are less than my income.  My emergency fund grows.  Since my outgo is less than my income that makes me rich, wealthy.  At least that's my opinion and my attitude. 

I have several elderly and infirm relatives and dear friends in the Central Florida area.  One is 97, the rest are 80s and 70s.  The youngest is 62.  I'm only 70 so I'm not yet elderly and infirm.  That makes me, by contrast, youthful and firm. I do stuff for them the way I would want people to do stuff for me (I don't expect that to happen).  Consequently I don't travel to drier climates very much, saving gas money.  I have much younger and firmer relatives (so firm they are still green) who don't have substantially more income than outgo.  That looks really hard.  By reducing the outgo I don't need so much income. 

Different things matter differently.  Being filthy rich (in spirit if not in fact) I can afford to get a kid size vanilla Frosty from Wendy's and take  it to the 97 year old.  I have the time to sit with her while she wolfs it down even if she can't tell me she appreciates it.  One of the 80 year olds just got a cancer diagnosis and I can afford to get a lasagna and bring it to her.  Not working I have the option of listening to her for hours when other people (relatives included) complain that she talks too much.  You can be a superhero if you bring someone a 9 pack of toilet paper rolls when they are in need of it.  It doesn't matter what it is that you want to do.  If you figure out how to do it and be frugal while doing it, social security can be great.  It can be as good as I imagine really being rich would be.

When I first got work at age 12 my mother told me that I must put away 10% so I'd have something to live on when I got old.  In her generation pensions were common.  10% turns out to not be enough now.  I had an employer that did IRA matching of 6% giving a total savings of 12%.  With social security I'm not using the IRA and my savings are increasing so when I get infirm and end up in a $5000 per month assisted living I'll have enough to pay for quite a few months before I go broke and end up on medicaid. 

I encourage your plan to try it in the spring when the weather gets nice.  If you can have paid for assets (vehicle and gear), an emergency fund, and some income then, with some dollars to stretch, some pennies to pinch, and frugal skills, this can work.  If you start with high car payments and lots of camping gear on the credit card balance and a spendy attitude it might get very unpleasant before you dig out of that hole.

 

[maki2]

Whether SS works depends on how much you get monthly, and that depends on your earning history. If you contact the Social Security Administration they can tell you what your payment would be, if you take early retirement of standard retirement.

Whether SS is enough also depends on how you want to live.

As for me, yes, SS has been enough, but I'm getting more than most nomads who've shared their numbers with me.

The government sends everyone a yearly report on the status of their SS account and the estimate for retirement income at various ages.

 

[gourdgirl]

Thanks for the responses. I started taking SS at 62 but for various reasons I’ve gone back to work. Therefore, I know what my monthly benefit will be (about $1400). I’m old enough for Medicare (or will be next month). My vehicle is fairly new and not paid off but I hope to come close to paying it off when I stop working. I can be very frugal and I’m not looking to treat this like a permanent vacation. Once I get out west where most of my family is, I won’t rack up a lot of miles. I’m familiar with camping on BLM and forest land and lower cost park lands. I won’t have any debt except perhaps a few months left on my car. Those will be lean months if it turns out that way. I do have a hobby that may bring in a few extra dollars but nothing that can be depended upon.

I will need to run some numbers to determine what is feasible. I just don’t have a lot of options when it comes to retirement. I am not someone who would enjoy a shared living situation so it has to be within the means of my SS.

 

[maki2]

Not to worry, you will get a life you enjoy all sorted out and it sounds like it will be sooner rather than later.
Have a great and happy new year.

 

[ckelly78z]

While still working at the "decent paying job", why don't you try to at least save up a sizable emergency fund so your family back up plan doesn't have to be implimented ?...possibly work another year to ensure your financial future ?

 

[PECVD2]

“I currently drive an HR-V and if I can make it work, I'd like to not switch vehicles. ”

There are plenty of really nice C-RV build outs on Utube which should overlap some with the H-RV.

 

[hugemoth]

Some of us can live on almost nothing and still enjoy life. SS is my only income ($900 per month) and I still save over $200 per month but I'm an old hand at living cheaply. I own a house in Oregon but live most of the time in my truck camper with a quad and motorcycle in tow.

 

[crofter]

While still working at the "decent paying job", why don't you try to at least save up a sizable emergency fund so your family back up plan doesn't have to be implimented ?...possibly work another year to ensure your financial future ?

There is a problem with making decent money while on SS Early Retirement. They have an income cap (about $16,000 not decent money), and anything over that amount you must pay back plus taxes on the money you have paid back. So it's a great idea to save if you can, so you have the money to pay them back if they decide you have to. If you don't pay them back it is fraud and they will prosecute you. They consider any money over the allowed amount to be an overpayment, and some SS agents consider all overpayments to be fraud, even if it is your mistake, or if you can't let them know in a way that you can prove you told them your income. For example, going to the SS office and reporting your income at the window is not something you can prove that you did. If the SS agent is willing to give you a visit summary that states that you told them your income, that is something you can use for proof. SS is informed of your income through tax reporting by the IRS, but SS does not consider tax reporting to be the same as reporting your income to them. 

Last year I paid back $14K including taxes on the money that was paid back, and was threatened with prosecution. I had verbally informed the SS agent at the window of my income, when I figured it out for taxes. Repeat, telling them is not enough, and tax time is not soon enough. You have to prove that you told them, and exactly when, where, who, etc. Also, figuring your income at tax time is not enough. They expect you to know exactly how much you made (which could be influenced by deductions that change year to year and the SS agent I worked with was not willing to disclose whether they wanted gross or net figures with itemized deductions.  If you camp host, you will deduct your vehicle expenses, because you are required to have the vehicle to get the job, and will use it on the job). The agent I worked with also stole my checkbook, so that is the type of individual you are working with. Not someone you can trust at all. 

A couple years ago I met someone who lost everything because of these payback rules with Early Retirement. They took away the SS payments and also garnished paychecks to get their money back. I don't believe anyone went to jail over it though. But they were living pretty rough during the payback time, year round camping in a cold climate.    ~crofter

 

[ckelly78z]

I didn't imply that she should take SS early, and keep on working, I implied working for another year, and delaying SS until she no longer worked. This will increase her SS payments when she is ready, AND give her another year of wages to save for emergencies....her choice !

 

[crofter]

I didn't imply that she should take SS early, and keep on working, I implied working for another year, and delaying SS until she no longer worked. This will increase her SS payments when she is ready, AND give her another year of wages to save for emergencies....her choice !

She says she retired at 62 in post #7, so took early retirement like I did. I was not aware of all the trouble you get into by making money while on Early Retirement.  They now consider Early Retirement to be a need based SS benefit, not the same as collecting on the money you paid in.  I took Early Retirement instead of applying for disability, since SS Disability takes a long time to get. I was down to my last $5 when I got both a job and my first SS payment. What a roller coaster ride. Then after all this I became medically disabled again.   ~crofter

 

[crackedpan]

gourdgirl,  i want to praise you for thinking/planning all this through, you are a wise woman.  :thumbsup: 
 
i had to comment because on the road this year (me-solo senior woman)  i have met women just giving everything up and hitting the road to "live the dream" and finding it different than they were lead to believe on the internet.

 

[SLB_SA]

Thanks for the responses. I started taking SS at 62 but for various reasons I’ve gone back to work. Therefore, I know what my monthly benefit will be (about $1400). I’m old enough for Medicare (or will be next month).  My vehicle is fairly new and not paid off but I hope to come close to paying it off when I stop working. I can be very frugal and I’m not looking to treat this like a permanent vacation. Once I get out west where most of my family is, I won’t rack up a lot of miles. I’m familiar with camping on BLM and forest land and lower cost park lands. I won’t have any debt except perhaps a few months left on my car. Those will be lean months if it turns out that way. I do have a hobby that may bring in a few extra dollars but nothing that can be depended upon.

I will need to run some numbers to determine what is feasible. I just don’t have a lot of options when it comes to retirement. I am not someone who would enjoy a shared living situation so it has to be within the means of my SS.

The following might be well known to you; if so, my apology.

You wrote "I have one year left at a decent paying job and want to be as prepared as possible."
You also wrote "I started taking SS at 62 but for various reasons I’ve gone back to work."
It is possible that your SS benefit was reduced because of your income from work.  If so, SSA will increase your benefit once you reach FRA to compensate you for your benefit reduction.

 

[gourdgirl]

There is a problem with making decent money while on SS Early Retirement. They have an income cap (about $16,000 not decent money), and anything over that amount you must pay back plus taxes on the money you have paid back. So it's a great idea to save if you can, so you have the money to pay them back if they decide you have to. If you don't pay them back it is fraud and they will prosecute you. They consider any money over the allowed amount to be an overpayment, and some SS agents consider all overpayments to be fraud, even if it is your mistake, or if you can't let them know in a way that you can prove you told them your income. For example, going to the SS office and reporting your income at the window is not something you can prove that you did. If the SS agent is willing to give you a visit summary that states that you told them your income, that is something you can use for proof. SS is informed of your income through tax reporting by the IRS, but SS does not consider tax reporting to be the same as reporting your income to them. 

Last year I paid back $14K including taxes on the money that was paid back, and was threatened with prosecution. I had verbally informed the SS agent at the window of my income, when I figured it out for taxes. Repeat, telling them is not enough, and tax time is not soon enough. You have to prove that you told them, and exactly when, where, who, etc. Also, figuring your income at tax time is not enough. They expect you to know exactly how much you made (which could be influenced by deductions that change year to year and the SS agent I worked with was not willing to disclose whether they wanted gross or net figures with itemized deductions.  If you camp host, you will deduct your vehicle expenses, because you are required to have the vehicle to get the job, and will use it on the job). The agent I worked with also stole my checkbook, so that is the type of individual you are working with. Not someone you can trust at all. 

A couple years ago I met someone who lost everything because of these payback rules with Early Retirement. They took away the SS payments and also garnished paychecks to get their money back. I don't believe anyone went to jail over it though. But they were living pretty rough during the payback time, year round camping in a cold climate.    ~c

Okay, so let me understand this.  If I start working full time again and I inform SS will they not halt SS retirement payments at my request?

 

[WanderingRose]

I believe they will halt SS payments if you ask them to, the problem is having excess income while also drawing your SS, which is not like a pension many draw from one employer while working for another.

I would go into your local SS office, take check stubs and/or tell them what you want to do, talk with someone in person, ask your questions, take notes and of who you spoke with, then do a written notification of your employment status.

You may be able to do that electronically, at which time you should receive a confirmation.

If the agent does this for you, they should be able to print a confirmation out for you.

You can only have a certain amount of income while drawing SS, and if you go over it you will be penalized.

Good luck.

 

[gourdgirl]

I’m on hold with SS now. From what I’m reading, you can’t suspend payments unless you are 66. I turn 65 this month. If you take early benefits and stop SS within a year of starting, you can pay back what you received and retract your application so that you can reapply when you reach full retirement. But if you’ve taken the benefit for more than a year and you haven’t yet reached 66, you can’t suspend. That’s what I’m reading and need to confirm.

 

[WanderingRose]

Hmmm, good you are researching and being careful.

Good for you.