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What is the retirement life with only social security benefits?
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If you want to retire on the social security fund, it is really nervous.
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The amount of social security depends on the money you put into the social security system. The less you earn, the less you pay for social security and the less you receive benefits.
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You can roughly calculate the future benefits on the website of the US Social Security Agency (ssa. gov). Your welfare mainly consists of the ten years with the largest income, and is affected by inflation.
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This amount accounts for 25% to 50% of the income, and is also affected by various factors. If this is the source of all your income, your tax burden will be very light, and you can use most of your money as living expenses.
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Before retirement, you can make a choice: if you retire early, you will have less benefits; Late retirement brings more benefits; After retirement, benefits will no longer rise if you don’t get paid.
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Medical insurance will cover a lot of expenses during your hospitalization, but unless you join the special drug reimbursement plan, you cannot be reimbursed for receiving medical treatment. Even if you join, you will not be able to enjoy 100% medical reimbursement. You are likely to use a large part of your social insurance income to pay for health care. Even if you are very healthy before retirement, it is impossible to maintain the same status in the last days of retirement.
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If you pay off the house payment and do not rent a house, your social insurance will continue to increase. On the contrary, if you still have a mortgage or do not own a house, it may not be enough to rent a house, pay all the medical expenses, buy food and clothing with social insurance funds. Don’t mention it if you want to buy a car with it.
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Many communities provide subsidized housing for people living on a fixed income. Take my community as an example. The elderly can rent one third of their retirement income to public housing. The elderly with a monthly income of $600 can rent a house for only $200. In this case, more medical expenses are used for public medical assistance, so most of the remaining 400 dollars per month are used to buy food and pay miscellaneous expenses.
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However, most communities in the United States can still live on social security funds alone, and can’t expect to live comfortably.
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If you pay off the mortgage, your social insurance will continue to increase. With reverse mortgage, you can rent a house according to the value of the house and earn extra income every month to make yourself more comfortable.
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If there is still time before retirement, pay off the mortgage first, so that you don’t have to spend money to live in a house after retirement. Every sum of money you save before retirement will enable you to really enjoy it many years later. Keep an eye on your savings and keep it as long as you can.
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People who retire ten years later should make a comprehensive plan, pay off the house payment and save at least two years’ income. With a house and this deposit, your retirement life will be very different from the days when you rely solely on social insurance.