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Imagine you’re in the following predicament. You’re 55-years-old. You don’t own your home, you rent. You also have less than $1,000 in the bank, no retirement savings, and no pension. On the bright side, though, you’re employed, have little consumer debt, and are relatively healthy.

Is a decent retirement possible given these circumstances?

It is. But in order to pull it off, you have to make some drastic changes in your life, and you have to be ready for a little adventure. Here’s my game plan.

Focus on the Things You Can Control

For our purposes, a decent retirement is defined as follows.

  • Enough income to cover basic necessities (food, clothing, shelter, transportation, and healthcare).
  • Enough savings to cover modest bucket list items and modest emergencies.
  • Good health and good relationships.

I believe you can begin a decent retirement starting at age 67 (eligibility age for full Social Security benefits). To do that, though, you need to control three critical things: your health, your personality, and your spending.

Health

It’s hard to enjoy retirement if you can’t walk a hundred yards, climb a flight of stairs, or get into a car; in other words, absent rudimentary mobility, your retirement will suck. Seeing the Grand Canyon in person is much more rewarding than looking at it on your iPad.

The good news is that you don’t need permission from Congress to eat better and exercise. Nor do you need a board-certified nutritionist and a fancy gym to get in shape.

Your health is dramatically correlated to what you eat and how you move. So let’s tackle nutrition and exercise.

On the nutrition front, I want you to do one thing: drastically reduce your sugar intake. You don’t need soda, ice cream, candy, and cake to live. The more sugar you consume, the more you will subject yourself to the ravages of obesity, diabetes, and, in the eyes of some doctors and scientists, heart disease. But here’s the rub. Sugar is everywhere—not just in the usual suspects. It’s in your cereal, bread, spaghetti sauce, yogurt, salad dressing, peanut butter, and ketchup. It’s even in (or on) your McDonald’s french fries. So if you want to lose weight and increase your chances of being mobile well into old age, get as much sugar out of your life as possible.

And you don’t have to go cold turkey. Start by removing sugary drinks from your diet. Just drink water. It won’t be fun. I was a sugar addict up until a few years ago, and chucking my sweet tea was brutal. But after a few weeks, my body adjusted and I no longer “needed” brown sugar water to slake my thirst.

Once you’ve conquered sugary drinks, try to keep the de-sugarfication going. It’s amazing how good a hamburger tastes all by itself. There’s no need to slather it with ketchup or barbecue sauce. Salads too taste fine without dressing. After condiments, try removing cereal and white toast from your breakfast routine. The key is to treat sugar like alcohol. Having a few beers every now and then is perfectly okay. Having a case of beer every night is a crime against your liver. So leave ice cream, candy, cake, and the rest of mankind’s sucrose-laden creations for the weekend or every other weekend. Make sugar a treat, not a staple.

On the exercise front, I’m a big fan of Mark Sisson. Mark blogs at Mark’s Daily Apple, and his exercise philosophy can be distilled down to two rules: walk a lot and, on occasion, lift heavy things. That’s it. Not very complicated. So at the very least, you need to do the following exercise regiment. It’s free, and it’s not very time-consuming. If you can do more, bully!

  • Walk a mile (every day)
  • Do 25 push ups (5 sets of 5 reps every Monday, Wednesday, and Friday)
  • Do 50 squats (5 sets of 10 reps every Monday, Wednesday, and Friday)

Need a little motivation? Check out this dude from New York. No fancy gym or equipment. No fancy workout clothes. Just bodyweight exercises down at the neighborhood park. And the guy’s freakin’ ripped.

Personality

People are more inclined to help and befriend angels rather than devils. And since you’re a broke quinquagenarian, you’re going to need all the help and goodwill you can get to secure a decent retirement. So don’t be a jerk. Be kind to everyone, especially those who have “menial” or dirty jobs. Don’t share your politics with anyone—unless you’re asked. And even then, tread lightly. Don’t be peevish, cross, or negative. In the immortal words of Monty Python, “always look on the bright side of life.” And, finally, keep the entitlement mentality at arm’s length. No one wants to be around someone who feels his very act of breathing is enough to warrant favors and privilege.

Spending

There’s no getting around it. In order to have a decent retirement, you’re going to have to save. To save money, in turn, you need to spend less than you earn. Housing and transportation usually take the biggest bites out of a person’s budget. So try economizing there if you can. Downsize to a smaller house or apartment. Move to a working-class neighborhood. Ditch your car for public transportation or a bicycle. Be bold. Be creative.

Once you’ve exhausted every way to reduce housing and transportation costs, move on to other budget items. Utilities? More sweaters and less heat in the winters. More fans, more open windows, and less air-conditioning in the summer. Food? More Walmart, more bagged lunches, and less eating out. Clothing? More Goodwill and less Macy’s. Entertainment? More Netflix and less cable. Fun? More playing cards at a friend’s house and less bar-hopping. There is no shortage of ways to save money if you’re determined to do so.

Need ideas? Need inspiration? Here are some great websites to help you flex your saving muscles.

Centsibly Rich

Choose Better Life

Club Thrifty

John Jane Doe

Super Saving Tips

Save for Your Bucket List and Emergencies

This past October, I went to Green Bay with over a dozen of my high school buddies to see a Packers game. It was our first bucket-list adventure, and it was a blast. Beer, brats, and good-natured mockery are surely the stuff of life.

This bucket-list adventure cost me around $1,200. Not cheap, but certainly not extravagant. Having such adventures in retirement is doable as long as you save.

How much?

To cover, say, ten bucket-list adventures and basic emergencies (car repair, refrigerator replacement, new eyeglasses, etc.), I estimate that you’ll need $100K. To have $100K by the time you’re 67, in turn, you will need to save at least $500 a month (see screen shot of Dave Ramsey’s Investment Calculator below).

If you can’t save at least $500 a month, game over. If you can, put your savings in two places. First, put $1,000-$3,000 in a savings account for emergencies. Second, open a Roth IRA with Vanguard and put the rest of your savings there. Sixty percent of your monthly contributions should go into Vanguard’s total stock market ETF (VTI) and forty percent should go into Vanguard’s total bond market ETF (BND). Re-balance your portfolio every year on your birthday to maintain that 60/40 allocation.


bucketlistfund

Move to a Low-Cost State

The only income you will have for basic necessities in retirement will be Social Security. Right now, the average Social Security benefit is $1,348. That amount of income isn’t going to cut it in high-cost states such as California, Massachusetts, and New York. But it will cut it in low-cost states.

In North Carolina, for instance, you can rent a decent trailer in a decent trailer park for $450 a month. Now assuming for the moment that Social Security keeps pace with inflation, the average Social Security benefit is large enough to cover basic necessities (see the table below). It’s also large enough to cover a little hell-raising. One hundred and three dollars doesn’t buy a lot of vice (beer, pizza, lottery tickets, etc.), but it buys enough to keep life interesting.

Low-cost states aren’t for everyone, of course. I get that. But if you’re a broke quinquagenarian who wants to retire at 67, low-cost states are your only hope. If you’re adamant about remaining in a high-cost state, you can kiss retirement good-bye. You will work until you die or until you’re carted off to a nursing home.

IncomeSourceAnnuallyMonthly
Social Security Benefit$16,176.00$1,348.00
Total Income$16,176.00$1,348.00
ExpensesItemAnnuallyMonthly
Federal Taxes$0.00$0.00
State Taxes$0.00$0.00
Medicare Part B ($104.90/month)$1,258.80$104.90
Medicare Part D, Plus Maximum Deductible of $360$769.20$64.10
Rent (Water, Sewer, and Lawn Maintenance Included)$5,400.00$450.00
Food$2,400.00$200.00
Electricity$738.00$61.50
Cell Phone$552.00$46.00
Internet$960.00$80.00
Cable$600.00$50.00
Car$1,600.00$133.33
Clothing$300.00$25.00
Cleaning Supplies/Toiletries$300.00$25.00
Total Expenses$14,878.00$1,239.83
Amount Left for Fun/Miscellaneous Expenses
$1,298.00$103.32

Final Thoughts

I devised this “prepare for impact” retirement plan because, sadly, America is chock full of 55-year-olds who have no savings and are living paycheck to paycheck. As far as I can tell, their only shot at a decent retirement is depressingly straightforward: get healthy, get affable, save $100K over 12 years, and move to a low-cost state so you can live on Social Security. Is this plan perfect? Of course not. You may not be able to save $500 a month. You may not be able to work until 67. There’s no contingency for nursing care. If you don’t die before your $100K is spent, you’ll be relegated to whatever nursing facility Medicaid can afford. But despite my plan’s obvious shortcomings, it has one quality that is particularly attractive: it’s doable.

Okay, groovy freedomists, that’s all I got. What advice would you give a broke quinquagenarian who hopes to retire one day? I’d love to hear your thoughts. Peace.

58 thoughts on “Prepare for Impact: You’re 55-Years-Old and Broke

  1. I am a 65 yr old woman and close-to-broke retiree. I worked hard all my life, single mom, no child support, no family support. By age 46 I managed to save up enough for a down payment on a house. A few years after the house purchase I got married. We worked, saved, invested in stocks, mutuals and real estate, etc. Life was good for a change. Then the beginning of the downfall began in 2006, when the market started to plummet. I won’t go into detail, but will say our retirement was shot to h—. We both lost our jobs, health insurance, our stocks dumped, real estate dumped and had to deplete some of our savings, and in spite of all our effort trying to pull through, we ended up divorced. I couldn’t manage the house payments anymore, so I sold, not knowing where I’d go with my two big dogs. What I netted from the sale makes me sick to my stomach considering how much was spent over 17 years. I ended up finding a rental in another state not knowing a soul. I noticed how quickly the little money I had was going, so not to rent anymore, I managed to buy a new house with a zero down USDA loan in a town out in the middle of nowhere — where I don’t want to be. It’s the best I could do to save myself at my age. I live in social security alone. I can’t afford cable or taking my dogs to the vet or anything extra. I’m relatively healthy and could live another 30 years. One illness could wipe me out financially so I worry every day about what will happen when the money is gone. There’s not much work here but I pick up a few odd jobs but not enough to supplement my income. So reality has hit that being alone living in a strange place I don’t like without the means to go anywhere is the payoff I get for all my hard work, planning, sacrifices and living life responsibly for the past 50 years. There’s no guarantee in this life.

  2. Better off killing yourself. That’s my plan and I may have to do it before my sixties as I have been homeless twice and can’t make it at 57

  3. What about unforseen expenses, like car repairs all the copays an occasional movie , no apt that I know in this town is less than 650 and this is a real cheap place to live. The only hope is supplementing your income by working, forever. That’s what I’m doing. Hope I die before I end up in a nursing home.

  4. Forget politics and all other noise. It’s garbage and always will be when it come to survival. Nose down chin up and work hard as you can. Bumps are coming but it’s just a bump. Tried to keep good spirits,. It’s brutal but it can be done. So what if you feel reduced and let down. Faith and fearless will get it going. No matter what

  5. This article is CRAP.

    How is it that, in the U.S. with all it’s wealth, you have people who HAVE been working all their lives and have nothing?

    It is because the U.S. is a Capitalist System. All those hard working people are exploited and used as slaves. When they can’t work any more, they are thrown to the street.

    No, the working man, and the working old will NEVER get a fair deal in this Capitalist nightmare called the United States.

    The answer is SOCIALISM, where pensions are paid to citizens at a certain age, enough for these people to live with some dignity. Where prices for the People’s necessities of life are FIXED, and NEVER CHANGE, and wages are set to allow a working person to obtain all the necessities of life. Those things today in America are denied to decent, hard working people and our senior citizens.

    You talk about saving $500.0 0 a month. That says a lot about where you are, and where you come from. Do you realize how IMPOSSIBLE that is for people to do?

    Doable? BULL—%!

    1. I disagree. Socialism never works because the government, unlike the free market which is guided by an “invisible hand,” is guided by a “visible foot.” And that visible foot is monopoly, price opacity, unaccountability, and cronyism. Capitalism has its faults too, but those faults are easily subdued by free-market principles (i.e., competition, price transparency, bankruptcy, and reasonable or non-existent barriers to entry) and a basic safety net. I do, however, agree with you that saving $500 a month is a tough task for a lot of people. But you’d be surprised what people can accomplish when they put their minds to something. For instance, if your life truly depended on saving $500 a month, don’t you think you’d be able to work a little more and spend a little less to make it happen? Or would you just perish? Thanks for stopping by, my friend. I love being called out and made to defend my beliefs. Cheers.

      1. Your comment shows me which class you come from, and you are wrong about Capitalism. Capitalism destroys EVERYTHING it touches.

        Capitalism DEPENDS upon an EXPLOITED MASS OF PEOPLE. How do you “profit” in Capitalism? The foundation of it is to use slaves to produce goods to sell at MUCH more than you pay the slaves.

        In other words, the VALUE that the slaves produce is STOLEN by the owner of the human slaves as “Capital Gain.”

        American slaves have no human rights; no right to a job, no right to a home, no right to an education, and no right to medical care. We don’t even have THE RIGHT TO EAT FOOD, if you don’t have the money to pay the Capitalist and his profit margin.

        There are some things that should belong to EVERYONE. The Capitalist takes this from the people to turn a profit and CONTROL THE SLAVES.

        Capitalism will ALWAYS produce terrible human slavery and misery. Your Capitalism has been TERRIBLE for the slaves at the bottom that carry it along. YOU are not at the bottom, so you can’t see it, NOR DO YOU CARE.

        No, you profit from things the way they are, so why would you want to change anything. Either that are you are just uninformed about the realities of the Capitalist system.

        YOU DON’T CARE that people are working 80 hours a week, because their life depends on it. It is no way to live, but here again it doesn’t bother you. You are not a slave, at least not like that. You don’t have to do that, do you?

        1. Hey, Rich. Your definition of slave is very odd. How is someone who voluntarily agrees to do a task for someone for a specified amount of pay a slave? And if working for someone makes you a slave, why would that definition of slavery be different if the state rather than a capitalist were the employer? Capitalism, because it’s based on voluntary exchange, is a profit and a loss system. In other words, nothing is guaranteed. If the capitalist manages resources well (including the labor component of his or her business) and provides a service or good that the public buys willingly, he or she is rewarded with profit. If the capitalist manages resources poorly and provides a service or good that the public shuns, he or she is punished with losses. Again, I readily concede that capitalism is far from perfect. But it is much better than the alternative. Socialism stifles innovation and is steeped in cronyism. That’s why capitalist or free-market countries are much more wealthy than socialist countries. Thanks for stopping by, my friend. Hope to hear from you again. Cheers.

      2. Honestly, what is the point of all this?? To work your fingers to a bone in order to just survive because you can’t save money due to inflation, life circuImstances and are single? I mean what is the point to live a life where you can’t afford anything, or have any enjoyment. My mom’s friend didn’t have anything, developed MS and was finally put in a medicade bed in a facility in a room with a stranger. When you walked in the facility it smelled like urine. She lived like this for years. What a living hell and why and for what purpose? If that is what the end is going to be like—then no thank you. This world seems to be designed for only couples. So the singles I suppose are just SOL. This was the most depressing article I’ve read in a long time. I was talking to a friend today and in 2017 my home by myself was affordable. Today, with the high prices, I would not have qualified for the mortgage. It is a middle to upper class neighbor hood, so does that mean today, since I would not be able to buy that same house I am now low middle class or upper poor class. That all changed in a matter of 4 years with Covid, the economy, inflation.

    2. I agree, for the most part. I used to not believe in socialized medicine but now I do. I have worked all my life and still struggle and I’m an RN . All you need is one setback, car dies, health care, helping your children and you can never recover. It cost half your paycheck or more just to put a roof over your head. And yes, saving 500 bucks is a joke and that saving would not last long enough anyway with all the bills. So here I am approaching 69 recovering from a total knee replacement and have been trying to find a nursing job again. If I don’t I’ll have to give up my car and live like a peasant ..with just social security.ire

  6. Interesting and great approach for a single person in a trailer park and on a restricted diet.

    I’m 55..just had twins, have 3 other step children in school, another son and daughter from recent divorce..son has crohns and have no money for his college and my oldest daughter is probably an alcoholic. My GF does not have a license or SS so you know what that means. 8 have major back and anxiety issues. I do have 200k in the bank, 45k in 401k and 4 rentals . No mortgages but have a HELOC on one for 65k. Houses are worth 80 to 100 k. Positive income of 3500 monthly. 20 year job 65k year. 320k home and I owe 200k. I’m not well and looking to go for disability.
    I do all the excellent things you mentioned but I think I’m just screwed. Depressed dad of many.
    Thank you

  7. Well hard to say anything for myself but one thing for sure i’ve Worked Hard almost my entire life at one company for nearly 24 yrs. and Now sit at 58yrs. Old with NO savings at ALL,do own my home and have a good car that i still pay on. Do i ever need help i’m going to start the savings of $500 a month and as suggested.
    Thank You for this information Very helpful!
    Rita~

  8. There is enormous benefit to being well-liked. So many folks overlook that. It’s incredible the free things you can be a plus-one at, if people find your company agreeable.

    1. Hey, ZJ. Sorry for the late response. Totally agree with you. Life is only easier “if people find your company agreeable.” A lot of wisdom there. Thanks for stopping by, ZJ.

  9. I was that guy! And I was definitely not alone. Everything said is spot on. Let me add that TV is sugar for the brain. Put down the remote and get to work on a side hustle to add income streams. Don’t settle for a job as your only income before and after retirement. Great stuff!

    1. “…TV is sugar for the brain. Put down the remote and get to work on a side hustle to add income streams. Don’t settle for a job as your only income before and after retirement.”

      Thank you, Ian, for one of the more insightful quotes I’ve come across lately. And thank you for no longer being “that guy.”

  10. We often see these lists and think, well yes it’s so simple and obvious. The alarming thing is that so many have zero clue and need awesome articles like this to shine the light on a much more efficient and practical way to live that will ensure life in the future is less stressful. I sure the heck don’t want to be 55 and have no savings and have put myself well ahead of the pack to ensure that. Great post !

    1. Thanks, Chris, for your very kind words. It is indeed simple and obvious. But habit, consumerism, and ego have a way of blinding us. If only we could turn wisdom into cereal and feed to our kids.

  11. This is definitely a post I’m going to be coming back to. I try to instill this post’s mindset into people my age (young twenty-somethings) when I talk to them about the importance of investing and starting early.

    My dad is nearly 58 years old and only has 35K in his 401k. Luckily, his social security payout is going to be over $2,000 per month and he has a pension (what are those?! haha).

    1. Haha! I love it. What’s a pension? It’s certainly an arrow you don’t find in too many financial quivers today. Glad your dad has one to fall back on. With his pension and Social Security, he should be fine. His 401(k) is icing on the cake.

      Interesting aside. I retired early from my government job and my pension is just under $20K a year. Had I not left early, my pension today would be around $55K a year, and I would get free health care to boot. I just don’t see how public pensions are sustainable. Meh. Things are going to get very interesting in the next 5 to 10 years.

      Thanks for stopping by, Colin. I love hearing from millennials who have gotten their financial acts together.

  12. This is such an important post and a big eye opener for many. I am so thankful my mom turned her stuff around. She got really involved in her finances after my parents divorce. Up until that point my Dad had controlled most everything. After buying her our townhouse she joined an investment club and they would meet once a month to talk and learn. She recently retired and is all set for her coming years. I’m so proud of her!! My Dad, on the other hand, lives large and says he will never be able to retire. I’ve chosen to follow in Moms footsteps. 🙂

    1. Your mom rocks! What an inspiring story. Divorce is never fun, but at least she used that tragedy to find her inner Dave Ramsey. Thanks for stopping by, Miss M. And thanks for following in your mom’s footsteps. The more Personal Responsibility Warriors we have in this country, the better our country will be.

  13. What a great post! And such an important topic because you’re right – there are so many people who will find themselves in this situation. You have so many excellent, pragmatic tips here. Especially… the sugar! This is the bane of my existence, figuring out how to limit the sugar. It is seriously at the root of so many of our health problems. I don’t drink sugary drinks, but I, like, eat candy! Someone needs to tell me how to stop eating sweets for dessert.

    1. Does God have a sick sense of humor or what? How could he make something that tastes so good be so bad? Sugar is the bane of my existence too. My goal is to limit my sugar intake to Saturday night. Mrs. G asked me if I wanted ice cream last night and it took every ounce of my will power to resist. I will go on a sugar binge this Christmas, though. Good luck with your candy vice, Linda. I’m pulling for you.

  14. Great advice! Although I’m not 55, I think I could still use a lot less sugar in my life.

    It’s pretty terrible how many folks are forced to retire without the resources to live with dignity. I saw a talk from a woman who heads a senior-focused non-prof organization here, and about 41% of seniors in our city are forced to choose between food and rent.

    It makes you think – how does this happen?

    1. Hey, Katasha. It’s such a brutal problem. Forty-one percent of seniors in your city are forced to choose between food and rent! And I’m sure the seniors in your city are hardly an anomaly. I just hope young people like yourself learn from the mistakes of my generation. Time flies by. Failing to save now will ensure a dreary future. Thanks for stopping by, Katasha. It’s always a pleasure hearing from you.

  15. Man I probably should cut back on my gatorade. I like to have those! By the way the video you posted on the guy working out, that stuff is phenomenal. I remember watching those in college and they made me set a goal of being able to do the “human flag pole”

    It’s a shame that people are in their 50s have no savings but the tips you provided are a good way to get people on the right track!

    1. Hey, Justin. I hear ya about the gatorade. I used to gorge myself on that stuff when I was younger, especially after a grueling workout. And from what I’ve been able to unearth, the guy in the video, Hannibal, works out in some park in Corona, Queens. If I’m ever in New York in the summer, I’d love to find the park and see if he could help me with my muscle-ups. Hey, did you ever manage to do the “human flag pole” yourself?

  16. This is a well written, hard hitting, and most importantly, actionable post.

    One more option might be to retire abroad. SS goes way, way further in many other countries than it does here. It is a far more drastic plan, but drastic times may call for drastic measures. Maybe point folks to The Earth Awaits website?

    1. Thank you! Thank you!! Thank you!!! You beat me to the next installment of this post. Retiring abroad is an excellent option. It’s so excellent, in fact, it deserves one or two posts of its own. Thanks for alerting me to The Earth Awaits website. It will surely come in handy. And thanks for stopping by, Mrs. Bita. You made my day.

  17. Thanks so much for the shoutout, Mr. Groovy!!!

    I LOVE that you included health and personality among the money tips for retirement. Both are so important to quality of life.

    I eliminated sugar about 6 years ago. I felt great and rarely picked up the viruses the kids would bring home. About a year ago, I started eating sugar for “special occasions”, which has since expanded to weekends as well. You’ve given me a great reminder that I’m allowing it into my diet a bit too much lately. (And I love that you mentioned Marks Daily Apple – great website!)

    1. My pleasure, Amanda. Mrs. Groovy and I love the work you’re doing over at Centsibly Rich. Truly great stuff. And I can’t believe you’re a fan of Mark Sisson! I really love his workout philosophy. Walk a lot, sprint for short distances, and lift some heavy things every now and then. This type of a workout is something you can do well into old age. I couldn’t imagine being a crossfitter, for instance, at 55. Thanks for stopping by, Amanda. And good luck getting back on track with sugar. I’ve been slipping as well. I want to get my ice cream fix back to once a month rather than every Saturday.

  18. I like what you said about it being doable. So many people just throw their hands in the air and say it’s not doable. Hopefully some of those people find this blog.

    1. Agreed. And desperate times can be liberating in a sense. Mrs. G and I are comfortable financially. So the idea of moving into a tiny house or a van is inconceivable. But if residing in a tiny house or a van was the only thing separating us from a decent retirement, we would downsize in a heartbeat. We care much more about our financial well-being than our stupid egos.

  19. Your points about sugar are so important! So many “55’s” were brought up in a time where everything was “low-fat” to be healthy. We know what that means – they replace the fat with a lot of sugar! Then the person gains weight and needs more low-fat… Thanks for giving some hope to folks who think all is lost. Some small changes and also changes in mindset can make a big difference!

    1. Have you read Gary Taubes’s “Good Calories, Bad Calories” or “Why We Get Fat”? He’s definitely in the fat is good camp. Mrs. G is a big fan of Mr. Taubes and I thought she was nuts. But this was because I was brought up in the “everything has to be low-fat” era. But after reading his books and investigating the matter, I have to say that Mr. Taubes (and Mrs. G, of course) is absolutely right. Fat is good. Carbs and sugar are bad. For the past two years I’ve greatly reduced my sugar and carb intake, and I feel freakin’ awesome. I’ve lost over 30 lbs and my cholesterol numbers have been great. No issues. And I really haven’t sacrificed anything. Having a hamburger without a bun isn’t brutal. Nor is foregoing sugary drinks.

  20. I need to send this over to my dad, they are doing fine financially but I think he is addicted to Mt Dew.

    I like the idea of working bucket list items into the equation, we may do that just to have money set aside for solely that purpose later.

    Thanks for the post Mr Groovy

    1. Mt Dew is deadly stuff. I never had one until I moved down south. A lot of the young guys in the office swore by the stuff. I thought they were nuts. But I tried it one day and had to concede. It was pretty damn good! Thankfully I stuck with Coke and Pepsi. If I switched to Mt Dew, curing my sugar addiction would have been even harder.

      And here, here to the bucket list! Everyone should have at least 10 items on their list and plan for them accordingly. You may not hit all of them. But if you don’t plan, you’ll hit none of them. Also, you got to keep in mind that father time is no friend of good health Mrs. G and I figure we can be active up to 70. So we got 15 years to hit, Ecuador, Thailand, and Australia–three critical bucket-list items.

      Thanks for stopping by, AE. I really appreciate it.

  21. Thanks for the shoutout, Mr. Groovy, and for a great article that is needed by far too many.

    I can definitely attest to the importance of taking care of your health, which I’ve unfortunately learned the hard way. But it’s a lot easier to turn things around before they get too far. Some simple changes can make a profound difference.

    Living in a low-cost home in a low-cost state is probably the biggest change you can make to your expenses. Doing that alone may allow you to save up a couple hundred a month to help pad your retirement.

    Also, broke quinquagenarians may want to take a look at their income. It may not be possible to start real estate investing for passive income, but you might be able to start a side hustle from a hobby. Every little bit helps.

    1. My pleasure, Gary. I love your site. It’s a great tool for anyone who wants to save money. And I couldn’t agree with you more about health. Just a few simple changes can make a “profound difference.” The key is to make the simple changes early enough so your body can recover. Quit smoking at 30 and you’ll do wonders for your health. Quit smoking at 80 and it’s doubtful your body will recover.

  22. Thanks for the shoutout, Mr G! (and the reminder to get my butt in gear with both increasing my exercise and decreasing my sugar intake.)

    Just a quick clarification question. Did you mean $100K to take care of 10 annual bucket list/mini-emergencies or just to take care of 10?

    And someone can’t do $500 a month but can do $250? Okay, they’ll have less fun, but that still leaves them a little buffer for the unexpected. Only $150 a month? That’s tight, but anything saved is better than nothing.

    Finally, if you’re getting towards the finish line without a reserve, time to get creative. If you own a home, maybe you can have family with other income to move in to help with the basics. Maybe you need a roommate or a boarder. Do what you can to boost your household income or reduce your expenses a bit.

    1. Ten over the course of a retirement. My bad. I should have made that more clear. And excellent point about saving $250 rather than $500. Two-fifty a month would definitely secure a few bucket-list items and provide some minor protection from life’s inevitable emergencies. So all is not lost if you can’t save $500 a month. And I like where you’re going with housing. Being creative in this area can do wonders for one’s retirement prospects. Most single-family homes have too much square footage for the people who actually dwell in them. In other words, a lot of housing isn’t used very efficiently. When Mrs. G and I moved down to Charlotte, we got a rental property. It was a 3-bedroom, 2-bath ranch with 1,100 square feet. We rented it to four adults. A couple with three kids, the husband’s brother, and the husband’s cousin. Seven people in one house. Talk about using a house efficiently! And it worked for all concerned. They paid their rent on time, took great care of the house, and saved a lot of money. Thanks for stopping by, Emily. Always a pleasure hearing from you.

  23. Great post Mr Groovy and so applicable to a significant percentage of 50-plus people in just about every western country in the world I suspect.

    I’m 51, healthy, financially secure, have a sugar/salt/fat reduced diet, and have retired early, and intend to enjoy it. However, I know people who are my age who have spent most of what they’ve earned, don’t exercise, and don’t live particularly healthy lives.

    As I read your post I just kept thinking about these people and how rapidly old age is approaching and that they are heading down the path to a pretty miserable retirement, that is if they can afford to retire at all.

    I especially endorse the bit about sugar reduction. It’s a poison, no doubt about it and we can certainly live without a significant amount of what we do eat, in our diets.

    1. Thanks, Martin. I was very fortunate. I figured out things financially in my early 40s. I also figured out things health-wise in my early 50s. So Mrs. G and I retired “early” (mid 50s), and we have a good shot at having a truly fantastic retirement. But if you haven’t figured things out by the time you’re 55, a great retirement is very unlikely. And it’s so sad. Because what you have to sacrifice to secure a great retirement isn’t much of a sacrifice. Is living in a 1500 square foot home really the personification of abject misery? Is foregoing sugary drinks really a supreme act of self-flagellation? Thanks for stopping by, Martin. I hope the people you know who are “heading down the path to retirement misery” wake up. And while I’m not an alarmist, I do agree with your assessment of sugar. It is a poison. A damn-good tasting poison, but a poison nonetheless.

  24. My mom is in this situation, but worse because she’s 63, with no real savings, and she started taking social security at 62. She has gotten back into art and pottery recently so she’s getting some income with that. Her new husband does the same and is a retired art teacher, so they have his teaching pension to live off of as well.

    But retirement or even emergency savings? No way…

    Trying to get her to budget or stick to a spending plan is pretty pointless as the discipline just isn’t there. A plan would change things for them immensely but they just don’t see the value in it. You can lead a horse to water… right? 🙂

    1. Hey, Mr. SSC. It’s a tough problem. For most of my life I had neither retirement savings nor an emergency fund. But soon after marrying Mrs. G we discovered Dave Ramsey and got the emergency fund going. And it did wonders for my piece of mind. Then we got the retirement savings going. And, again, it made sleeping at night a hell of a lot easier. So I’ve lived both lifestyles. I’ve lived the debt-up-to-your-eyeballs-and-paycheck-to-paycheck lifestyle, and I’ve lived the below-your-means-robust-emergency-fund-and-retirement-account lifestyle. The latter is infinitely more enjoyable. And hardly anyone would argue differently. The trick is to just give the below-your-means lifestyle a try. But how do we get people to become FI-curious? Meh! I wish I had the answer. Thanks for stopping by, Mr. SSC. And good luck with your mom.

  25. I think you hit the nail on the head. All about having a plan and sticking to it. You have to approach it with a good attitude and not get discouraged. Sure it might not be the retirement you dream of, but it’s better than working till your drop dead.

    1. Exactly! If you’re 55 and broke, you’re not going to have a dream retirement. But all is not lost. With a plan and some discipline you can still pull together a decent retirement. And as you so grimly pointed out, the alternative to doing nothing and maintaining the status quo is stark: “you will work till you drop dead.” Thanks for stopping by, Brian. Appreciate it.

  26. Thanks for the shoutout, Mr. G!
    I’ll add a +1 to your statement that taking care of your health is the most important part.

    If you’re overweight, your body wears out more quickly. In addition to heart disease and diabetes, you’ll have pain in your knees, hips, and back. This will make it more difficult to exercise, to enjoy yourself, and also to work.

    We have family members who can only walk from the house to the car, so that rules out hiking (of course) and even museums, window-shopping, grocery shopping, festivals, attending grandkids’ soccer games, etc.

    I also know people who have had to turn down jobs because they couldn’t climb or descend the single flight of stairs required to get to their office.

    Without decent health, so much of the other stuff becomes out of reach too.

    1. “If you’re overweight, your body wears out more quickly. In addition to heart disease and diabetes, you’ll have pain in your knees, hips, and back. This will make it more difficult to exercise, to enjoy yourself, and also to work.”

      How true! Two years ago I weighed 212 lbs. I then went cold-turkey on the sugary drinks and really cut down on other sources of sugar. I used to go through a bottle of barbecue sauce every week. Now a bottle of barbecue sauce will last a year. Anyway, I now weigh between 175-180 lbs and I feel great. It’s no longer uncomfortable to get off the couch or get into a car.

      Dramatically reducing my sugar intake really worked for me. I lost over 30 lbs and my LDL, HDL, and triglycerides are great. But, damn, being a recovering sugar addict is tough. I don’t miss my sugary drinks, but I do miss my Oreo cookies dipped in Nutella.

      Thanks for stopping by, Julie. I wish your family members well. Mobility is sadly something we rarely think about until it’s gone (or greatly diminished).

  27. EXCELLENT post, Mr G! Ironically, I just added a similar theme on my “To Write” list before reading yours.

    The audience for your article is HUGE, and we should all try to get it in front of the eyes of those needing to hear your message. Great post, practical, and necessary.

    The article I saw which led to me putting this on my “to write” list was this one – “From Broke To Retired In 10 Years”. Worth a read!!

    https://www.thebalance.com/from-broke-to-retired-in-10-years-how-you-can-do-it-2388366?utm_campaign=list_moneyover55&utm_content=20161201&utm_medium=email&utm_source=exp_nl&utm_term=list_moneyover55

    1. Great minds truly think alike! Thanks for the link. Very sound advice. I especially like the suggestion to read one financial book a month. Not only a great way to nail down the how-to of advancing economically but also a great way to stay motivated. As you mentioned, the number of broke quinquagenarians is huge. I figured I’d might as well share my two cents on how to mitigate the problem. I hope others will join you in taking up the challenge. Talk to you this week, my friend. Cheers.

  28. I unfortunately have a relative whose 66 and only income is social security. He does have a house but that’s it. My advice is if you’re 50, turn it around because you don’t want to go there. If it is too late investigate your options. Many states have programs to help seniors: reduced or no property tax, free transportation, etc. You just need to sign up.

    1. Tough problem, my friend. I’m glad your relative at least has some equity. And if things get dire, he or she can sell the house and downsize. Any chance he or she can live with a son or daughter, perhaps in a studio apartment above the garage?

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