Mortgage balance 81,655.09 @ 4.75 % with 22 years left.
Monthly expenses. Housing 910.00 (piti +condo fee) 380.00 health care (part B premium, plan N and part D)… 600.00 personal (groceries, gasoline, clothes etc.) …400.00 utilities (electric, cable, internet etc.) 105.00 car insurance.
Thinking part time job 18-20 hours a week @ 16-17 an hour.
Emergency fund 685.00 adding 10.00 a week.
20K Heloc if needed (0 balance)
Doesn’t travel much, condo has nice amenities like pool, fitness center, park like area with benches etc.
If the projected SS number of $1927 comes from the SS statement, expect it to be less if they retire now because the estimate assumes they will continue to contribute to SS until their full retirement age. Quit working before FRA, get less. Draw early, get even less.
At age 65, I would assume the OP already has their 35 years in for SS calculations. At this point they would simply be replacing any lower income years.
Another point of consideration is that if the OP is drawing Social Security then they don’t want to earn more than $24k or else it gets reduced.
Current monthly nut is $2,400 from the detailed expenses, which means roughly $500 shortfall from SS income. The 401k could easily produce a safe income stream of $8-10k to help cover the income shortfall without touching the principal. I would like to see at least a couple of months Emergency Fund before going part-time.
Yes. I know because I am doing it. I have been retired 7 years (I took SS at 62) I am very similar, although I have a small pension from work that basically covers my mortgage. I live comfortably on Social Security alone and will not need to draw anything of significance from my IRA until I am required to. I do not have a part time job - I ride a bicycle with my cycling group and this is where the bulk of my spending goes to. If anything, I would suggest that you look more at what to do socially.
Bear in mind, I don’t travel much at all. I’ve never cared for it. But you need to define “much” because with that limited income, ANY travel is going to require you to take money out of your IRA.
As for the part time job - it will be the quickest way to take you from the 12% tax bracket to the 22% tax bracket. Currently, the taxable part of my social security is $6.600 and my total income tax due is $498. I used a tool and added $15,000 to my income (for a part time job), and if I did that, over $19,000 of my Social Security would be taxable and my total tax due would be $3,680.
But it is possible to live frugally but comfortably in retirement with the numbers you gave.