In 1968 at age fourteen I began paying into Social Security. I have been paying in every year since with only a few exceptions. From 1975 through 2007 I earned enough every year (and then some) to qualify for the maximum SS “credits” (four) each year. In fact, by 1985 I had earned the necessary forty credits to qualify for retirement benefits. In total to date I have paid in more than $42,000 in SS taxes, and my employers matched that, of course. Adding in Medicare, total payments are over $100,000. Retiring at age 62 in November, I will receive a monthly benefit of $1,213 per month. I will have no other retirement income. I have no savings to speak of. I will have to live on what SS pays. That’s why I’m heading south, as in Mexico.
According to the math and research I’ve done, my $1,200 per month in Mexico will be about the same as if I were earning around $2,300 per month here, before taxes. This assumes an approximate relative cost-of-living in Mazatlan, Mexico as being 60% overall compared to my current residence in Reno, Nevada. In other words, I should be able to live in Mazatlan and enjoy my present standard of living for around $800 per month, or less. I’m single, male, no dependents, in good health, and rent a one-bedroom apartment, with very moderate discretionary and entertainment expenses.
Yes, I could stay here in Reno and (just) get by on my SS income, but it would leave very little for fun. So why do that when I can go live somewhere else for a lot less expense and a lot more fun? After all, I can always come back, anytime I want. I’m sure I will, from time to time. I have a place, not far from Reno, where I can live as a volunteer at a railroad museum during the summer, and the museum provides living space in a 1954 Pullman sleeper car, with kitchen and shower included. My SS income would adequately cover food and miscellaneous expenses. So, why not?
There are those who might accuse me of abandoning my country; I really don’t feel I would be doing that. I’m not renouncing my US citizenship, I’m just going to go live somewhere I can easily afford it, and I’ll just be doing something that millions of other American retirees are doing, with the plan to return yearly to do what I consider to be productive volunteer work.
I do wish I didn’t feel the need to go live somewhere else. I wish I had planned better and had a much more substantial retirement income coming, but you all know the value of wishes. The reality is I have the opportunity to truly enjoy my retirement years, and my homework tells me Mazatlan is the way to go. So, I’m going there in December for a one-month stay, to check it out and see if I’m right about this. Incidentally, I do have plans for much other travel abroad, and I should be able to save up for it by moving to Mexico.
I just wanted to share this with you, and this being my first DK blog after some years of absence, I invite your comments.