The $33,000 Retirement: One Man's Surprising Path to Financial Freedom at 61
Forget what society tells you, even with less than $1 million, you can be happy in retirement.


For Paul Alto, a lifelong Cleveland, Ohioan, the plan was always to retire at 65. But after having surgery to treat two hernias at 61, he knew he couldn’t go back to lifting 100 to 150-pound boxes in his shipping and receiving job.
Even though Social Security and his pension wouldn’t kick in until he turned 62, and he wouldn’t have any income coming in for a few months, he decided early retirement was the best option.
“My wife had been saving money. We had enough money to keep living 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.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In the meantime, he is drawing about $150 a month from the $33,000 he saved in his 401(k) and supplementing that with money in his savings account. The couple has been able to sock away some money over the years, not even close to the amount financial planners say you need to live comfortably in retirement, partly by selling their home and living a frugal lifestyle as they raised three children who are now 38, 33 and 32.
Alto and his homemaker wife were able to get discounted health insurance through the Affordable Care Act for about $200 a month. Alto says he can swing that monthly payment until Medicare kicks in at age 65.
Paul Alto, at his home in Cleveland, Ohio
Frugal for the win
While this may seem like a nightmare situation to some people — those who had planned to work for three more years and amass more savings for retirement, particularly when the financial planners tell us we need more than $1 million to retire comfortably — Alto couldn’t be happier.
He has always lived a frugal lifestyle and hasn’t been afraid to cut back as he’s gotten older. He got rid of cable a few years back and uses an antenna for TV, doesn’t travel, and about nine years ago started renting. He and his wife rent a three-bedroom house for $1,200 a month. That cuts down on the expenses that come with owning a home.
“I grew up in an old Italian house. If you make a dollar, you put 25 cents in the bank. I’ve been saving all my life,” says Alto. “I don’t travel. I married my dream girl, whom I met when I was 16. She cooks and bakes. My family owns a restaurant, and I don’t even go there.”
It’s not because Alto is cheap; it’s that he thinks his wife is the best cook in the world, so why should he spend money eating out? “Don’t get me wrong, if I get free tickets to a baseball game, I’ll go, but if I don’t have the money to spend, I just don’t go,” he says.
Modest lifestyle carried into retirement
Ever since getting married, Alto has lived a modest life, focusing on family and education, instead of materialistic things, which he says has paid off.
His grown children work as a doctor, a lawyer and a teacher, respectively. He is the proud grandfather to six grandkids, all five years old and younger.
Alto didn’t spend money on vacations when his kids were growing up; instead of trips to Disneyworld or the Caribbean, he paid for Catholic school. Sure, there were day trips to the zoo, but when Alto was on vacation from work, he would use that time to get things done around the house, toil in the garden, or spend time with the family.
That approach is staying with him in retirement, enabling him to easily transition into the next phase of his life, even if it's on a tighter budget than he planned.
Don't worry about the Joneses
When friends complain they are bored in retirement, Alto doesn’t get it. Instead of wishing he was still working, he’s relishing the time he has with his wife, children and grandchildren.
While society tells people they have to live a certain way in retirement, Alto says everyone is better served ignoring that advice.
“Everybody has their own opinion (about what retirement should be like), but people shouldn’t focus on that. They should concentrate on their own life,” he says.
The older Alto gets, he says the less he cares about things and the more he cares about spending time with his family, and staying active. Those, he says, are the keys to longevity. “Don’t let society run you’re life. You’ll be a happier person.”
Related content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Donna Fuscaldo is the retirement writer at Kiplinger.com. A writer and editor focused on retirement savings, planning, travel and lifestyle, Donna brings over two decades of experience working with publications including AARP, The Wall Street Journal, Forbes, Investopedia and HerMoney.
-
The Best Aerospace and Defense ETFs to Buy
The best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
Walmart Takes on Prime Day With Competing July Deals Event
Walmart is launching its own multi-day sales event to rival Amazon Prime Day — and it could be a smart time to shop, even if you're not a member.
-
Roth IRA Conversions in the Summer? Why Now May Be the Sweet Spot
Converting now would enable you to spread a possible tax hit over more than one payment while reducing future taxes.
-
Five Costly Medicare Myths
Signing up for Medicare can be complicated, and mistakes can be costly. Let's demystify these five Medicare myths to avoid expensive penalties.
-
Could Screen Time Be Good for Your Health?
We all love our screen time. Could your tech habit be helping you age gracefully? The answer is astonishing.
-
Investing Professionals Agree: Discipline Beats Drama Right Now
Big portfolio adjustments can do more harm than good. Financial experts suggest making thoughtful, strategic moves that fit your long-term goals.
-
'Doing Something' Because of Volatility Can Hurt You: Portfolio Manager Recommends Doing This Instead
Yes, it's hard, but if you tune out the siren song of high-flying sectors, resist acting on impulse and focus on your goals, you and your portfolio could be much better off.
-
The Five Social Security Blind Spots Retirees Often Miss
Understand how benefits work before applying, so you don’t lose money for which you qualify.
-
I Got Laid Off at 59 with an $800,000 401(k). What Are My Options?
If you've also recently been laid off, don't panic! Here's expert advice on what to do.
-
Does Morningstar’s Retirement Withdrawal Advice Work for Investors?
The financial services firm’s guidance takes a different path than the traditional 4%-a-year strategy. Researchers compare the two to see how they stack up.