Most younger people don’t expect Social Security to be there for them the way it was for their parents and grandparents. However, you may not have stopped to crunch the numbers to see exactly how much money you would need to save in order to supplement your Social Security enough to maintain your standard of living. No matter where you live in the country, you should take this into account, but in Seattle, you won’t be doing yourself any favors if you fail to assess your situation early. Don’t make the mistake of thinking, “Oh, I’ll be making less on Social Security, but I’ll be frugal and it’ll all be ok.” Here are some facts that you should consider
According to the Motley Fool, the average monthly Social Security check is $1413.08. Multiply that by 12 and it works out to approximately $16,956.96 per year that the average individual receives from Social Security in 2017.
Now calculate your living expenses. Seattle has a cost of living that is approximately 45% higher than the rest of the country, according to payscale.com. The biggest contributor to this high cost of living is housing. While it’s not quite at the level of San Francisco, Seattle’s housing market is booming and the price to buy or rent a house is soaring.
Think about this: According to expatistan.com, the average monthly rent for a 900 square foot furnished apartment in an expensive area is $2496 per month, and even in a normal area of Seattle, it’s still $1980 per month. That alone is more than the entire average monthly Social Security check. So much for being frugal.
On top of that, you need all the other things that come with a price tag for your daily life.
- Toiletries & Hygiene
Except for electricity, which tends to be cheaper than Washington than in other states, you can expect to pay more than the national average for basic living expenses in every category.
If you were to retire this year and depend on Social Security alone, it wouldn’t go very far, would it? But if you’re retiring in the next 5, 10, 20, or 30 years, you have time to do something about it and put yourself into great shape for your retirement years.
The Right Retirement Income Planning for Seattle
After reading the information above, are you just thinking that you’ll have to keep working until you die? That’s not the takeaway we want to leave you with. Instead, it’s our goal to help you to retire, and more importantly, stay retired, even if you live in Seattle. Our financial advisors specialize in retirement income planning so that you don’t have to navigate the math and the investments yourself. With a friendly and helpful advisor, you can discover YOUR path towards a retirement where you experience the relaxation and peace of mind that comes from knowing that you have sufficient income for life in Seattle.