Retirement Isn’t Just for the Wealthy
When people hear I’m planning to retire at 60, their first question is usually, “So how much did you make a year?” The answer surprises them every time: I’ve never earned more than $68,000 in a single year. I didn’t get a big inheritance, win the lottery, or work at a tech startup. I was a regular worker in a modest industry. What made the difference wasn’t how much I made—but what I did with what I had.
This article breaks down the exact steps I took to build a retirement plan that works, using middle-class resources, smart habits, and realistic goals.
Step 1: Defining What Retirement Really Meant to Me
From the beginning, I never equated retirement with luxury. My vision was about freedom—not yachts. I wanted:
- To leave full-time work by 60
- To live in a quiet, lower-cost area
- To have time for travel, family, and hobbies
- To feel financially secure, not rich
This simple vision helped me create a concrete savings goal. I didn’t need millions—I needed about $650,000 and some modest supplemental income.
Step 2: Living Below My Means—Consistently
From my 20s onward, I focused on one principle: spend less than I earn. I drove used cars, avoided debt, and never bought the maximum house the bank said I could afford. I skipped flashy purchases and stayed in the same apartment for 9 years.
My formula:
- Save 15–20% of income consistently
- Keep fixed costs low (rent, car, insurance)
- Automate savings to avoid lifestyle creep
Step 3: Maximizing Retirement Accounts
I started small: $100/month into a traditional IRA at age 26. Over time, I increased my contributions to include:
- 401(k) with employer match (contributing 10–15%)
- Roth IRA for tax-free growth
- Health Savings Account (HSA) for future medical expenses
By age 45, I was contributing over $1,000/month across these accounts. Compound interest did the rest.
Step 4: Avoiding the Big Money Traps
Along the way, I saw friends fall into traps that I avoided:
- Upgrading homes repeatedly and stretching their budgets
- Taking on new cars every 3–5 years with loans
- Leaning on credit cards for lifestyle maintenance
Instead, I chose:
- Used vehicles bought in cash
- A home I could pay off in 15 years
- Avoiding lifestyle inflation when I got raises
Step 5: Building Extra Income Streams
In my 30s and 40s, I started small side hustles to increase savings:
- Freelance writing
- Online product sales
- Part-time seasonal work
I didn’t work 80-hour weeks—but those extra $200–$400/month chunks added thousands to my retirement accounts over time.
Step 6: Planning for Healthcare and Social Security
One of my biggest concerns about early retirement was healthcare. To manage this, I:
- Built an HSA balance of over $50,000
- Planned to use ACA health coverage from age 60–65
- Will delay Social Security until 67–70 to maximize payments
This combination provides a safety net and reduces pressure on my retirement withdrawals.
Step 7: Choosing a Location That Matches My Budget
I chose to retire in a low-cost state with no income tax and affordable housing. My annual expenses will be around $32,000, supported by:
- Withdrawals from my retirement portfolio
- Part-time freelance income (~$500/month)
- Eventual Social Security income
The Numbers That Made It Happen
Here’s a snapshot of my retirement plan at age 59:
- Total retirement savings: $670,000
- Paid-off home: $190,000 value
- Emergency fund: $20,000
- Projected Social Security: $1,850/month at 70
Combined, these assets will comfortably support my lifestyle—without needing a six-figure income or pension.
What You Can Take Away from This
You don’t need a massive salary to retire well. You need:
- Clarity about what retirement means for you
- Discipline to save even small amounts early
- Willingness to avoid the traps others fall into
- Smart use of retirement tools like IRAs and HSAs
It’s not magic—it’s math, mindset, and momentum.