For Paul Alto, a lifelong Cleveland, Ohion, the plan was always to retire at the age of 65. However, after undergoing surgery to treat two hernia at age 61, he knew he could not lift a 100-150 pound box in the shipping and acceptance job.
Social Security and his pensions didn’t start until he was 62 and he didn’t get any income for months, but he decided early retirement was the best option.
“My wife was saving money. We had enough money to stay alive until the transition,” said Alto, who turned 62 in late June. Alto will receive his first pension payment later this month and his first Social Security check in August.
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In the meantime, he withdraws about $150 a month from the $33,000 he saved on a 401(k) and refills his savings account. The couple has been able to steal some money over the years, but financial planners have not said they need to live comfortably in retirement by selling their homes and living a modest lifestyle, as they have now raised three children, 38, 33 and 32.
Alto and his housewife’s wife were able to obtain health insurance discounted for around $200 a month through the Affordable Care Act. Alto says he can pay that month until Medicare begins at age 65.
Paul Alto at his home in Cleveland, Ohio
(Image credit: future)
Fruit for victory
This may seem like a nightmare to some people, but this is people who have worked for another three years and planned to accumulate more savings for retirement, especially if financial planners say they need more than $1 million to retire comfortably.
He always lived a modest lifestyle and was not afraid to cut back as he grew older. He removed the cable a few years ago, used antennas on his TV, did not travel, and started renting about nine years ago. He and his wife rent a three-bedroom home for $1,200 a month. It reduces the costs associated with owning a home.
“I grew up in an old Italian house. If you were to make dollars, you put 25 cents in the bank. I’ve saved my life,” says Alto. “I don’t travel. I married the girl I met when I was 16. She is cooking and baked goods. My family owns a restaurant.
That’s not because Alto is cheap. He thinks his wife is the best chef in the world, so why should he spend money on eating out? “Don’t get me wrong. I’ll go when I get a free ticket to a baseball game, but if I don’t spend the money, I just won’t go,” he says.
A modest lifestyle will be brought to retirement
Since getting married, Alto has lived a modest life focused on family and education rather than materialistic things that he has been rewarded.
His grown children work as doctors, lawyers and teachers respectively. He is the proud grandfather of six grandchildren over the age of five.
Alto didn’t spend any money on vacation when his children grew up. Instead of traveling to Disney World and the Caribbean, he paid Catholic schools. Certainly there was a day trip to the zoo, but when Alto was on vacation from work, he used the time to get things done around the house, struggle in the yard, and spend time with his family.
That approach allows him to easily move to the next stage of his life, even if he is on a tighter budget than planned.
Don’t worry about Jones
When a friend complains that he’s tired of resignation, Alto doesn’t get it. Instead of hoping he is still working, he enjoys his time with his wife, children and grandchildren.
Society tells people they have to live in a certain way to retire, but Alto says everyone ignores that advice and provides better services.
“Everyone has their own opinion (about what retirement should be like), but people shouldn’t focus on that. They should focus on their lives,” he says.
The more old Alto is gained, the less he cares about things and spending time with his family, the more he says he continues to be active. They are key to longevity, he says. “Don’t let society run your life. You will become a happy person.”
