Never Retire - Cost of Living and (Never) Retirement
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Replacement rate. The percentage of your income from work Social Security will replace.
I prefer to look at it this way. What percentage of your cost of living—now, going forward, anticipated—will Social Security cover?
We don’t talk much about Social Security. And I’m not sure why. It matters. Especially if you’ll Never Retire and you center this reality around a low cost of living, but a fun life.
Once you reach full retirement age—67 in my case—you can work as much as you’d like and not have your Social Security benefit reduced. When you’re under full retirement age, you can earn up to $19,560 without losing any portion of your Social Security benefits.
It makes sense to run the math on your situation to see where you stand.
I’ll use myself as an example to illustrate the idea of not replacing income with Social Security, but covering a portion of your cost of living with this retirement benefit.