NextAvenue.org has permission to reproduce this article.
Joan and Steve Reid, both 67 years old, quit their day jobs at the public library and a florist to relocate from Pearl River, New York City to Vero Beach in Florida. Both 67-year-olds, the couple had one goal: to retire, cut down on their spending, and live off a monthly income of no more than $30,000.
Next Avenue first wrote about the Reids in 1996. It became a popular story, Retiring On a Shoestring. Next Avenue decided it would be fun to look back and see how things have changed and what they look like now.
Joan states that our total expenses are roughly the same in New York as Florida.
The couple is happy with their decision to move, even though it wasn't as financially sound. It has been a great experience. Joan says that we live the same way as always. It's not luxurious, but it's comfortable.
What does retirement look like?
Although the transitions to new places and different psychic experiences have been difficult, they were not easy. Joan says that our feelings fluctuate between being grateful for the move and feeling a sense loss. This has been gradually lessened. They miss New York's changing seasons, particularly autumn.
They were eager to enjoy a slower pace of Florida life in 2019 It worked out well. Joan says that although we have adjusted to the slower pace, it could be more about the acceptance and comfort of retirement.
Their income: Now and then
The Reids now make a living from a variety of sources just like they did in New York.
Steve, who makes art out of found objects and mixed media, has sold two pieces this year, totaling $350.
Joan was a content editor at two local magazines from November 2019 to April 2021. She earned $800 per month. She says that this was a huge boost for us. In 2019, she earned $630 from freelance writing, editing, and teaching. However, she only made $305 in 2020, and zero in 2021.
Joan quit her job as an editor and began writing Joyful Passage, A Woman's Path to Retirement. She self-published Joyful Passage on Amazon AMZN +0.03%. The book traces the Reids' journey to retirement, their planning and finally the move to Florida. Joan anticipates that she will earn $45 from it in November.
She says the books message is that you don't need to be wealthy to retire. Joan also pays shipping fees for any copies she sells and any author copies. She says that she does her own marketing via social media and email.
In 2020, the couple was awarded a $2,400 Pandemic Stimulus Check from the U.S. Government and a $2,200 2021 one. These were great gifts.
Each month they receive $257 in combined pensions. Their Social Security benefits have increased slightly each year (both started claiming at 62), but so has their Medicare premiums. It's basically a wash.
They project that 2021 income will be $24,769. This is roughly the same as 2020, but less than $27,000 in 2019. Florida does not have an income tax which allows them to keep more of the money they earn.
What happened to their expenses?
They have the same daily expenses as New York but are higher for food, medical, and auto insurance.
Their medication costs reached $423 in 2020. They have already reached $583 this year. Joan explained that Steve's meds are now more plentiful, which has led to increased doctor visits and follow up visits. Co-pays have also increased in frequency.
The couple applied for Patient Assistance Programs with pharmaceutical companies to lower their prescription costs. Steve was able to receive free medication for dry-eye syndrome.
From $505 in 2019, to $848 in 2020, medical co-pays have risen from $505 in 2019. When it opened its first location, the Cleveland Clinic absorbed many medical practices in Vero beach. Joan says that it adds an additional tier to each doctor's visit. They now try to avoid any medical practices that are associated with the Cleveland Clinic.
The Reids can save money on doctor visits by having their blood pressure, glucose, and cholesterol checked at no cost by their primary care physician offices.
Also, see: Health insurance will prevent us from returning to the U.S. A couple in Texas who retired to Spain with about $2,000 per month has an example of how health care can help.
Joan claims that dental work in Florida is more expensive, but they have found a dentist who can work with us and our budget. We have also been able to pay with installments for some of the work.
The Reids pay about the same amount for gas ($60 per month) and car insurance ($100 per month) as they do in New York. The Reids drive a Chrysler 16-year-old with 195,000 miles.
Rent is the biggest saving for couples. They would be paying $1450 per month in New York. They are still saving a lot, even though their Vero Beach rent has gone up nearly 10% from $800 to $970.
The Reids have been able to reduce their debt by paying $1,580 down from $4,000. They were able to contact creditors to remove some of the interest and fees from their credit cards.
Joan said that I sent an appeal letter to Capital One COF CEO +0.88%. Joan also wrote one. Both intervened and removed over $800 of interest from our accounts, as well as freezing our account balances so that no interest accrued. The accounts were effectively shut down.
Joan also notes that she called Sears SHLDQ +25.00% to discuss closing her credit card account. She paid down the remaining interest through small automatic payments. They aim to be debt-free by early 2022.
They have also saved quite a bit. They currently have $2,400 in emergency funds. Joan said that she didn't have a plan for saving. It was not a good idea.
Do you want to get a job?
The Reids discussed plans to obtain part-time work (less than 10 hours per week each for each of them, at minimum wage) in the 2019 Next Avenue article. They have given up on this idea. Joan explains that we looked at first when we arrived. Both of us quickly realized that we were not square pegs trying fit into round holes.
She says that instead, "What were doing to help ourselves? Getting Steves art in the public eye," and she's writing.
Steve was featured in a local newspaper and had two solo exhibits. Joan states that the exposure has accelerated his art career within the region.
She notes that retirement has given us more time for artistic pursuits, which could bring in some revenue.
Don't miss: I am 66 and receive $26,300 per year in Social Security. I want to retire in a small, ocean-side city.
Reduce expenses by thinking outside of the box
Joan, who was still working as an editor until spring 2013, said that she needed help with food. She and her husband were assisted by the Salvation Army food pantry many times.
They have stopped ordering takeout and eat out less, and they are eating more vegetarian food this year to keep their food costs down.
They borrow films and books from the library to entertain themselves, rather than paying for them. The Reids do not have a TV service. Joan explains that we watch YouTube shows connected to a personal hotspot on our iPhones.
They can take advantage of free admission to the Vero Beach Museum Of Art and free outdoor dance parties at local parks with live music.
Goodwill also sells kitchenware and clothing. Joan said that I can't remember when I last bought clothes at a regular retail shop. For basics such as sugar, paper products and 2-for-1 greeting cards, Joan says, they frequent dollar stores. They also buy refrigerated items like shampoo, razors, underwear, and linens.
Joan joined the nearby McKee Botanical Gardens for $60 per year. She says that the environment and nature surrounding it make it a place where I can find peace to commune with Mother Earth.
This is what I wrote: Although I didn't expect to retire to Panama, we live very comfortably on $1200 per month
You can also enjoy other outdoor activities for free. They search for seashells at beaches less than 10 miles away, and they walk along the trails to Greenway Lagoon.
Do you think there was anything they could have done differently?
Our situation turned out exactly the way we expected. Joan said that we should live as best we could with what we have and continue our passions for writing and visual art.
Debbie L. Miller writes in Brooklyn, N.Y. This is her 17th article on Next Avenue.
This article was reprinted with permission from NextAvenue.org, Inc. 2021 Twin Cities Public Television, Inc.
Next Avenue has more:
