Living On $1,262 Social Security

[JJReyes]

Social Security basic facts include:

 

$1,262 is the average monthly benefit in 2013.

 

Social Security is the major source of income for most of the elderly.

 

51% of the workforce has no private pension coverage.

 

34% of the workforce has no savings set aside specifically for retirement.

 

There was a long running topic about living in the Philippines on $800 a month. The general consensus is you can exist, but it won't be a very comfortable lifestyle. What about $1,262, which is the 2013 average Social Security monthly benefit. Would this be sufficient? My assumption is no wife or family dependent on your monthly benefit. 

[Genius]

Still does not sound like much to me.

[softail]

A few years ago I was volunteering at a soup kitchen, a lot of the guys I was working with were just getting out of prison.  I was chatting with the guy working next to me, asking what his plans were when he was released.  He told me that he would be receiving $450 dollars a month SS and that he was going to move to the Philippines where he could live like a king on that amount.  I wonder how things are working out for him?  I tried to talk a little sense into him but he seemed pretty set in his plans. I wonder if he has a blog somewhere? :bonk:

 

Doug 

[earthdome]

I think you can do it, but I would not want to and am glad I don't have to. I expect it would be 50% more comfortable. ;)

 

Getting away from the big cities will help keep costs down.

 

It helps if you have the capital to cover your startup costs and maintain an emergency fund.

 

For startup costs I estimate $5 - $10 K USD. This is for travel, temporary housing and food while you search out a more permanent place to live and shipping and/or purchasing necessary household goods.

 

For the emergency fund I would want a minimum of $10K USD.  Even if you have medical insurance, since you most likely will have to pay cash then later get reimbursed by your insurance provider.

[Bruce]

Well, here is how you can do the $450 a month or more.... Once you forget about Air Con and hot water, this puts you into the realm of reality. The kicker is recreational issues. Really. Once you get past the shelter and eating issues, THEN what are you going to do? So many hours in a day to kill, day after day, month after month....

 

Out on Samar, we have an abundance of SQUATTERS. Now of course the politically correct police wants us to use the term 'informal settlers'. But in reality, what is the difference between a drunk and an alcoholic???? Money and insurance. If you can pay for rehab (cash or insurance) you are called an alcoholic. If you can't pay... then you are a drunk!  

 

Same for the 'informal settlers'. In reality they are squatters....as they can't afford the title of 'informal settlers'.  And they are damn proud of it!

 

Just because someone is a squatter, does not mean they do not have a house. Perhaps a concrete house..... And furniture and a bed too! But they do not own the land and they do not pay any lot rent (squatters remember... not renters).

 

So, if Mr. $450 a month comes out to Samar and woos Mrs. Widow-The-Squatter, his $450 a month buys all the food they need and the electric bill and water bill too. Then he needs to fill his down time. Fishing? House remodeling on a budget? English lessons for a few pesos? Then Phil Health is Less than $50 a year. Needs to save up some each month to pay for visa extension, which averages what $700 a year?? (not sure)  

 

So.... IF and this is a big IF... remember the 'alcoholic / drunk' above? Well if you are a drunk.... you may have issues staying drunk and paying your obligations for food and shelter. But if you are not a drunk, you can adapt and if you can save some each month or your family is willing to help you out some, you can add in hot water and air con to the house and then watch what you do to pay for the added electric.

 

Living on $450 (or more) can be done on Samar, and safer than the life style you would have in your home country.  No one freezes to death on Samar.... No huge heating bills or rat trap public housing projects to live in because that is all you can afford....  

Edited June 26, 2013 by Bruce

[Mike S]

Well we do it (live on my SS) and manage to save a little bit too ..... but we also have an emergency fund just in case something drastic comes along ...... support the family .... no need to other than send my asawa's mother a little something each month ..... all the family members work .... 2 are ofw's .... 1 school teacher .... 1 just had a baby but her hsband is a cook for a large resturant in Manila (by the way 3 of the nephews and niece are in colledge ...... as far as the other relitives go as I said before we don't support them what so ever ..... and please don't feel sorry for us we live quite well with plenty to eat but we don't spend money foolishly nor do we entertain or eat out but maybe once or twice a week .... and also drive our own SUV .... but some people say we can't do it and are not happy ..... but then what do I know ......  :mocking:  :mocking: 

 

I've put our budget up several times so if you are interested do a search ..... :thumbsup:

:cheersty:

[Tukaram (Tim)]

Right now I do live on $800 and put back a little (very little) each month.  But I would much rather have $1262!  Luckily in 5 years, when I retire from the school district, I will have more than that  :)

 

I don't have aircon or hot water but they are overrated.  We eat out a couple times a week (Mang Inasal, or Bong's for arroz caldo).  I bought 3 cell phones this month and still came in under budget. (Android for me, regular phone for girlfriend and cousin Rogena)

[Thomas]

Still does not sound like much to me.

Getting away from the big cities will help keep costs down.   It helps if you have the capital to cover your startup costs and maintain an emergency fund.

I have said such before, but perhaps worth repeeting  :)   showing it isn't as impossible as some believe, living comfortable AND cheap.

 

Actualy even back when I earned as MOST (=significant more than I used) I DIDN'T USE more than what's counted as "existens minimum" in Sweden. (Recounted to nowadays money value it's around 500 USD plus rent cost for home. In Sweden everyone have "health insurance" paid by taxes. This cover most of the handling, almost all of the medecin costs when it's more than 300 USD per year, but very litle of costs if need to stay in hospital, but this last is counted after income, so if it's low, then this cost is low too.)

I can live of 1000 USD/month now in SWEDEN, the months I don't need to hire someone to do biger jobs, which I can't do now because of my injury, e g this month I hire assistance moving things. I sort my things trying to downsize preparing to move to RP  :)   These 1000 USD INCLUDES a 6 room villa, but only heat half of it during the cold period. But I don't have a car for the moment, because my injury don't like traveling anyway.)  BUT then I have funds so I can buy things far in advance, when they are cheap, or buy hobby equipment, which cost some to buy, but (almost) nothing to use, so my hobbies cost almost nothing in average per month, although I have many. (Some of them before my injury) for such costs I e g have a cheap billiard, small sailing boat, go to dance, play tennis, music instruments...

 

Conclusion: The heating costs in Sweden are high, over 3000 USD/year, which are INCLUDED in my amounts above. Yes, there are some extra costs for foreigners in RP, but when I can live at 1000 USD/month in Sweden, then I suppose it can be done in RP too, I mean AFTER have got the things needed to settle =things you have already in your home country. Of course it cost much in the startup "recovering" from what you left in your birth country. (It cost much to transport, so much isn't worth to bring, need to be replaced.)

So I suppouse you + ONE can live rather comfortable in RP at 1262 USD, IF your health isn't bad. And IF you don't have any big costs for family-in-law   :)    But affording no/very few travels to your birth country to visit family and friends. But they can want to visit you extra much when you live in RP   :)

[Thomas]

Well, here is how you can do the $450 a month or more.... Once you forget about Air Con and hot water, this puts you into the realm of reality. The kicker is recreational issues. Really. Once you get past the shelter and eating issues, THEN what are you going to do? So many hours in a day to kill, day after day, month after month....

Well. 

/Aircon.  

A Swede have built a house in Thailand with good issulation, and clever system make heat go up and out, so he almost never need to use his aircon. I suppouse similar can be done in RP.

/Hot water.  

A tank out in the sun cost to build, but not much to use  :)

/Then what to do?

E g do as I    :)     (See EXAMPLES in what I wrote above. I have MANY more hobbies, which cost (almost) nothing e g read and write books, compose music. canoe, genealogy, more sports...)  If someone is short of hobbies, you can get some from me   :lol:

Some like gardening, which can reduce living costs too by grow something useable. I don't like gardening, but I like berries  :)   so I have planted a few berry bushes, which spread themselves, so now I have got a lot, only add some fertilizer and stomp down the grass around.

There are A LOT of interesting/fun things to do, EXTRA much in RP as study their language, culture and nature...

So I'm SURE I will not be short of interesting/fun things to do. The OPPOSITE = I have no chance to do all I want to do before I die, even if I reach over 100 years of age...

And then I haven't counted wife and kids, which I suppose will need some time too   :dance:

[Papa Carl]

This can be done easily, believe me, I live on a lot less than 54,000 pesos a month!

 

I live in a two bed, two bath, house with car park, built to western standards, I have cable tv, and internet, electric, water, gas, and a car, plus A/C in my bedroom, but not the rest of the house.

 

I have a wife and a daughter, and the usual relatives who show up and staying for extended months.

 

So yes, you can.

 

Depends on where you live in the Philippines and what your expected life style is.

 

 

Papa Carl