The number $1,400 might seem arbitrary, but it holds significant meaning for many Americans—it’s the average Social Security benefit that retirees will receive. With around 40 million households having zero retirement savings, including 30 percent where the breadwinner is over 55, this benefit could be the sole financial resource for many in their golden years.

The burning question is, can someone actually live on $1,400 a month? Surprisingly, the answer is yes. In many parts of the world, that amount would provide a luxurious lifestyle. Places like Panama, the Philippines, Nicaragua, Armenia, and Grenada offer a high quality of life on a fraction of what it costs in the U.S. Many American expats thrive on much less in these countries, trading some American comforts for a lower cost of living.

But let’s assume you want to stay in the U.S. You’re retired but not yet 65, so you don’t qualify for Medicare and need to buy your own medical insurance. Fortunately, Obamacare or ACA marketplace offers affordable options. Let’s also presume you’re single, with no dependents.

The first step to making $1,400 a month work is moving to a low-cost state. Living costs can vary significantly across states. For instance, someone in Atlanta, Georgia can enjoy a similar lifestyle on half the income of someone in San Francisco, California. With an annual income of $16,800, you won’t owe federal taxes and likely no state income tax in most places. Thus, relocating to a state with a low cost of living rather than zero income tax is wiser.

Here’s a budget proposal based on real living costs in towns like Youngstown, Ohio. While it might not include much for entertainment or travel, saving on various budget items will give you extra spending money. For example, if your car is paid off, you save a significant chunk of the $200 monthly car expense. Sharing housing costs can cut down the $500 monthly rent dramatically.

If you’re like the average household with around $40,000 saved for retirement, you can invest this money for additional income. A safe mutual fund with low volatility and good returns, like the Vanguard Wellesley Income Fund, can provide about 4% annual returns. This could add $1,600 a year, or about $130 a month, to your income, helping cover entertainment or other expenses.

In summary, living on Social Security alone might seem daunting, but with careful planning and smart choices—like relocating to a low-cost state and investing wisely—it can be done. You’ve worked hard all your life, and you do deserve a fulfilling retirement, even on a budget. Happy retirement planning!