What do you do when your 60th birthday rolls around and you haven’t saved much, if anything, for retirement? Image Ryan, a single man from Little Rock, Ark., who found himself in this situation shortly after he lost his job during a company restructuring. He was looking at two years before he could claim Social Security benefits — and a reduced benefit at that — and he had no idea how he could make ends meet for another 20 years or more.
According to an AARP survey from 2024, fully one in five Americans over 50 have no retirement savings, and 61% worry they won’t have enough money to support themselves in their later years (1). The average Social Security payment to retired workers is $2,006.69 per month, according to the Social Security Administration, but that number includes people who were high earners or took their benefits after full retirement age (67 if you were born in 1960 or later). If you are forced to take your benefits early, your monthly check could be much less (2).
The good news is that people in this situation still have a viable path to financial security, if they make the right moves. The key is to raise your income where you can, take advantage of all the benefits available to you, and cut your fixed costs until the math works. The process won’t be easy, but with discipline and determination, you can put your anxiety to rest.
Doomscrolling personal finance websites can give you a false impression of the direness of your situation. According to a study from Northwestern Mutual, Americans say they need a “magic number” of about $1.26 million to retire comfortably (3).
How accurate is that number? Lump sums like that are usually back-projected from a rule developed in 1994 by the financial planner William Bengen, who analyzed historical market data and found that a 4% annual withdrawal rate from a balanced portfolio was generally safe enough to last for a 30-year retirement. But if you’re able to economize, you can make do with much less (4).
Assuming you are healthy and able to work, it’s important to delay claiming your Social Security benefits for as long as you can. Delaying Social Security until full retirement age, and ideally to age 70, increases your guaranteed monthly check for life because you earn delayed retirement credits that add about 8 percent per year after full retirement age. For those born in 1960 or later, claiming at 70 pays roughly 124% of your full benefit (5).
To buy time so you can claim Social Security later, you’ll need to find a job. American Job Centers can connect you to openings, offer short training sessions, and connect you to local hiring help (6). Contract and gig work, like freelancing or working with an app may be able to help you, but don’t forget to set aside money for income and self-employment taxes.
If your current or prospective job doesn’t offer a 401(k), you can open your own tax-advantaged account and automate contributions. In 2025, the IRA limit is $7,000, and workers age 50 and older can add a $1,000 catch-up payment, for a total of $8,000 (7) If you have self-employment income, consider a SEP IRA or a one-participant “solo” 401(k). A SEP allows employer contributions up to 25 percent of net self-employment earnings, subject to the overall defined-contribution plan limit of $70,000 in 2025 (8). A solo 401(k) lets you contribute as both employee and employer within the annual elective-deferral cap and the same overall plan limits (9).
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Housing costs are a burden on many these days, but there are ways to lower them. Is your current space more than you need? Consider downsizing, whether that means moving to a smaller place if you rent, moving into a shared rental with roommates (older people do it all the time!), or, if you own your home, making extra income by renting out a room.
Given how much you’re struggling financially, you could benefit from exploring all possible options. When it comes to food or income assistance (such as SNAP or LIHEAP), Medicaid, or disability — if you qualify, you should apply. That’s what the programs are there for!
You might qualify for a housing voucher through your local public housing agency. Voucher formulas aim for tenants to pay roughly 30% of adjusted income toward rent and utilities (10). If your income meets requirements, the Senior Community Service Employment Program offers paid part-time community placements with skills training that can lead to long-term jobs (11).
For free through his long-time bank, Ryan consulted a personal financial advisor who gave him some bedrock advice. Your very first step should be to build a zero-based budget for the next 60 days, and track every expense to confirm your real baseline budget (12).
At 60 with no savings, your plan should not include counting on a winning lotto ticket. Though Americans dream of a seven-figure nest egg, many are able to retire with far less.
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AARP (1); Social Security Administration (2); Northwestern Mutual (3); Prudential (4); Social Security Administration (5); American Job Centers (6); IRS (7); IRS (8); IRS (9); U.S. Department of Housing and Urban Development (10); Senior Community Service Employment Program (11); Citizens Bank (12)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
