The day after she became eligible for Medicare in her mid-60s, Nancy Neff prepared to board a transatlantic cruise to kick off her retirement.
Roughly a decade later, the 72-year-old Connecticut resident is spending her days taking traditional lace-making classes in Belgium. Soon, she's set to take a train to Paris — she's never been and there's an antique lace auction she's eager to attend. She's already crossed Australia, Fiji, French Polynesia, and Chile off her list of places to visit.
"I was very concerned about being an impoverished old lady trying to live on her own and not having anything beyond Social Security," she said. "I kind of went overboard and saved more than I needed to."
Americans' retirement can take many shapes. Business Insider has heard from thousands of older adults, with some barely scraping by on Social Security and others who worry they'll outlive their savings. There's also a cohort like Neff who, through savvy investments or high-paying careers, are spending their golden years without much financial anxiety. About 40% of American millionaires are over the age of 65, per the most recently available Federal Reserve Bank's Survey of Consumer Finances.
Neff said she could afford her lifestyle because she built a strong 401(k), started saving at a young age, and doesn't financially support friends or relatives. She said she retired with over $1 million in savings. And, though she receives a few thousand dollars in monthly Social Security, she doesn't rely on it to pay bills.
"I can't say I would have done much differently," Neff said, adding, "I'm in pretty good shape."
With a healthy nest egg, Neff travels in retirement
Neff had a long career in academia and computer programming, and said she worked her way up to a six-figure salary. Beginning in her 20s, Neff said, she began contributing to her 401(k) and consistently saved roughly a quarter of her monthly income. She occasionally traveled prior to retirement but always kept her budget tight.
By the time she was planning to stop work, Neff was surprised by how much she managed to save. She said her strategy of not trying to "play the market" with her investments allowed her to weather multiple recessions. Additionally, putting her savings in compound interest accounts and a diversified mutual fund helped her build wealth more quickly. "It's all very classic advice," she said.
Neff said she now had enough money to comfortably afford essentials and travel expenses, with Medicare covering most of her healthcare needs. Still, she is mindful of her spending and has always lived below her means. She says she chooses cheap transportation options, sticks to a food budget, rarely stays in fancy hotels, and has tried camping for low-cost accommodations. She also cuts her own hair and buys secondhand clothing.
"I don't really need a marble bathtub," she said. For her, traveling in retirement isn't about living "extravagantly" — it's about trying new experiences. She still saves money everywhere she can.
BI has heard other stories like Neff's: baby boomers with more money than they can spend, Gen Xers and millennials who save up to retire early, and Gen Zers who take "mini retirements" as a career break. The financially comfortable retirees, however, are in the minority.
AARP reported last year that one in five Americans over 50 didn't have adequate retirement savings, and data from the nonprofit United Way's United for ALICE program shows that roughly 42% of people of all ages live either paycheck to paycheck or below the federal poverty line, which is $15,650 annually for a single person.
As for Neff, she anticipates returning to the US soon to get a knee replacement, but she hopes to travel as long as she's able. She said she owed her lifestyle to decades of careful money management.
"I've been very lucky — I had enough wits, I was sharp enough to be able to get a degree and work at a challenging job," she said, adding, "but my advice is not just contingent on being lucky."
Do you have a story to share about retirement? Reach out to this reporter via email at allisonkelly@bjinnox.com or on Signal at alliekelly.10
