NEXT AVENUE - SPECIAL SECTION
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Retiring on a Shoestring: How It’s Going 2 Years Later By Debbie L. Miller
Editor’s Note: This follow-up to the 2019 story, “Retiring on a Shoestring,” is one of Next Avenue’s most-read stories of 2021. In May 2019, Joan and Steve Reid left their part-time day jobs – Joan at the public library and Steve at a florist -- and relocated from the New York City suburb of Pearl River to the oceanfront community of Vero Beach, Fla. The aim for the couple, both 67 at the time, was to retire, slash their spending and live off an income of less than $30,000.
From November 2019 to April 2021, Joan worked as a content editor for two local magazines, grossing $800 a month. "This was an incredible boost for us," she says. After leaving her editing job, Joan focused on writing “Joyful Passage: A Woman’s Path to Retirement” which she self-published. It chronicles how the Reids approached retirement, their planning process and ultimately the relocation to Florida. Joan expects to earn a $45 royalty from it in November. The couple received a $2,400 pandemic stimulus check from the U.S. government in 2020 and one for $2,200 in 2021. They get a combined $257 in pensions each month. And while their Social Security benefits have increased a bit each year (both began claiming at 62), so have their Medicare premiums, so it's basically a wash. All told, they project 2021 income to be $24,769, roughly the same as in 2020 but down from $27,000 in 2019. Florida has no state income tax, which helps them keep more of what they bring in. What's HappenedWith Their Expenses In 2020, their medication costs totaled $423. This year, they've already hit $583. "Steve's meds have increased in quantity," Joan explains, "which means more doctor visits and follow-up visits. And co-pays became more frequent." Medical co-pays shot up from $848 in 2020 from about $505 in 2019. To save on doctor visits, the Reids take advantage of free blood pressure, glucose and cholesterol checks at their primary care physicians' offices.
Two years later, Joan says, "All in all, our total expenses are about the same between New York and Florida.”
But even though their frugality hasn't exactly paid off as planned, the couple is content with their decision to relocate. "Our standard of living and residence have been a total plus. We live the way we always have," Joan says. "It's not luxury, but it is comfortable." Their Income: Then and Now These days, the Reids cobble together an income from several sources, much as they did in New York.
Steve, who creates art from found objects and mixed media, sold two pieces of art this year for a total of $350.
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