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A 2024 report by AARP found that 20% of Americans aged 50 and over have no retirement savings at all. The U.S. Government Accountability Office paints an equally dire picture. As of 2022, 32% of households with a worker age 55 and older had no savings for retirement or defined benefit plan.
If you’re 65 and haven’t managed to save anything for your senior years, you’re far from alone. You may also be feeling hopeless, and that’s understandable.
That doesn’t mean you’re doomed to working forever, though. Here’s how to salvage your situation so you don’t have to hold down a job until the day you die.
Figure out what income sources you’ll have during retirement
If you don’t have savings for retirement, you can still rely on income from Social Security. If you’ve worked all or most of your life, you’re eligible. The average retiree receives about $1,925 per month, or $23,000 annually, which is typically not taxed.
You can also increase your monthly benefit by delaying your claim. If you’re 65 (born in 1959), your full retirement age is 66 and 10 months, but you can earn an 8% annual increase in benefits by waiting until age 70.
You can also consider downsizing your home to provide extra income by freeing up equity, which you can use to supplement your retirement savings or invest in other financial opportunities.
If you’re looking to supplement your Social Security benefits in retirement, tapping into your home’s equity using a reverse mortgage could provide another valuable source of income. Many homeowners aged 65+ have a median home equity of $250,000, according to the National Council on Aging. This is quite substantial.
Getting a reverse mortgage is essentially cashing out the equity you’ve built up over the years in your house. Finance of America’s reverse mortgage options allow you to turn all that home equity into tax-free cash, helping to support your retirement lifestyle.
With a reverse mortgage from Finance of America, you can continue living in your home while accessing its value — and you won’t have to make monthly mortgage payments. The loan only becomes due when you move out, sell your home, or pass away.
Get your free reverse mortgage guide that walks you through everything you need to know to get started.
Another way to access your home’s equity is through refinancing with Mortgage Research Center. By refinancing your current mortgage, you can potentially secure a better interest rate while tapping into the equity you’ve built up over the years. This option allows you to access your home’s value without taking on a second loan or line of credit.
Mortgage Research Center, licensed in all 50 states, can help you explore various refinancing options that align with your retirement goals. Whether you’re looking to consolidate debt, fund home improvements, or supplement your retirement income, their experienced professionals can guide you through the process of accessing your home’s equity through refinancing.
Set a tight budget you can stick to
Retiring on Social Security alone is difficult, but possible. A Gallup poll found 23% of retirees rely solely on Social Security, and 60% of those feel financially comfortable.
To make it work, you may need to change your lifestyle and habits, including taking advantage of free entertainment and discounted activities. Libraries and community centers often offer complimentary programming for seniors, while AARP membership ($20 annually starting 2025) provides access to entertainment, travel, and dining discounts.
The gig economy also offers flexible options for extra income, like writing, teaching an instrument, or pet sitting.
While retiring on zero savings isn’t ideal, there are ways to work around the situation so you’re not plugging away at a full-time job for the rest of your life.
Sticking to a budget is key to reaching your financial goals, but tracking multiple accounts and expenses can be difficult. Monarch Money makes budgeting easier by bringing all your financial accounts together in one place.
With Monarch Money, you’ll receive custom reminders for upcoming bills and subscription renewals, ensuring you never miss a payment or get caught off guard by auto-renewals.
The app also provides clear visibility of your net worth by connecting your investment accounts and real estate holdings, giving you a complete picture of your financial health. Monarch simplifies your finances so you always know where your money is and where it’s going.
For a limited time, you can sign up and get 50% off your first year with code NEWYEAR2025.
Push yourself to work a few more years – and save during them
Working a few extra years before claiming Social Security can help maximize your benefits. Delaying until age 70 offers the largest monthly checks based on your income history.
Cutting some spending and saving while working could give you a cushion for unexpected expenses like home repairs. If you downsize your home, you could also contribute to an IRA or 401(k). A $500 monthly contribution over five years, with a modest 4% return, could add up to $32,500, especially if you lower your housing costs.
Working a few extra years before retirement can significantly boost your nest egg through continued income and investment growth. Make the most of these extra working years by automatically investing your spare change with Acorns .
The app automatically rounds up your everyday purchases to the nearest dollar and invests the difference into a diversified portfolio . This means that while you’re still earning an income, every transaction — from your morning coffee to grocery shopping — contributes to building your retirement nest egg.
For example, when you spend $3.60 on coffee, Acorns will automatically invest the 40-cent difference. These small amounts add up over time. Plus, with an Acorns Silver plan, you get access to Acorns Later, a retirement investment account with a 1% IRA match on new contributions. With Acorns Gold, you get a 3% IRA match on new contributions and the ability to customize your portfolio by selecting your own stocks.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
