Having no savings means that you will be forced to rely on your Social Security benefits for income in retirement. According to the Social Security Administration (SSA), among Social Security beneficiaries, 12% of men and 15% of women rely on Social Security for 90% or more of their income.
20 percent of adults ages 50 and over have no retirement savings at all. 61 percent are worried they will not have enough money to support themselves in retirement.
Reorientation: Often considered the hardest stage, this is when you're most likely to start re-evaluating your retirement lifestyle. It involves asking the hard questions and relearning what does and doesn't work for you, so you can get the most out of your retirement.
Individuals who have not saved for retirement and who still own homes can turn to their homes as a source of income. For some, this could mean renting a portion of their space as a separate apartment. Another option is to take a reverse mortgage on a home, although doing so can be costly and complicated.
Seniors can save money on housing by choosing to stay in their own homes and becoming a member of a local virtual retirement community. Virtual retirement communities are grassroots, nonprofit organizations that provide older adults with a variety of accessibility services.
More than two-thirds of retirees wish they would have saved more and on a consistent basis — and half wish they hadn't waited so long “to concern themselves with saving and investing for retirement,” according to the researchers.
The safe withdrawal rule is a classic in retirement planning. It maintains that you can live comfortably on your retirement savings if you withdraw 3% to 4% of the balance you had at retirement each year, adjusted for inflation.
Nearly half of Americans retiring at 65 risk running out of money, Morningstar finds.
Nearly half of Americans at least somewhat agree with the statement, "I am living paycheck to paycheck," as of the third quarter of 2024. The share shrank slightly between the second and third quarters of this year, but in 2022, less than 40% of Americans felt this way, Bank of America reports.
Overall, 22% of Americans said not saving for retirement early enough is their top financial regret. Older generations, who are closest to retirement, were more likely to cite not starting to save early enough as their biggest regret than younger generations.
You may have to rely on Social Security
Many retirees with little to no savings rely solely on Social Security as their main source of income. You can claim Social Security benefits as early as age 62, but your benefit amount will depend on when you start filing for the benefit.
Does everyone get Social Security? No. Still, American workers who will not qualify for Social Security retirement benefits are relatively rare. It's important to know if you are one of them, so you can secure other sources of income or determine whether it's possible for you to become eligible.
The $1,000 per month rule is designed to help you estimate the amount of savings required to generate a steady monthly income during retirement. According to this rule, for every $240,000 you save, you can withdraw $1,000 per month if you stick to a 5% annual withdrawal rate.
The ideal monthly retirement income for a couple differs for everyone. It depends on your personal preferences, past accomplishments, and retirement plans. Some valuable perspective can be found in the 2022 US Census Bureau's median income for couples 65 and over: $76,490 annually or about $6,374 monthly.
In 2023, housing expenses—mortgage payments, rent, property taxes, insurance, maintenance, and repair costs—averaged $21,445 (approximately $1,787 per month) for retiree households, accounting for over 36% of annual expenditures.
On average, 63 is the ideal age for retirement according to both retirees and pre-retirees. While current retirees are hitting close to that mark with an average actual retirement age of 62, there are signs that future retirees could have more difficulty retiring at their ideal age.
Senior Citizens' Saving Scheme
SCSS is arguably the first choice for most retirees.
Elderly individuals who are unable to turn to family for financial support and have no money can become a ward of the state. This may be the case if the senior develops a health emergency and is no longer able to live alone.
Thailand. Is it possible to retire in Thailand and keep the costs in check? Certainly! It's another top choice for digital nomads with an achievable $500 monthly budget, focusing on affordable accommodation.
Medellín, Colombia
Couples can live there for less than $1,700 per month, enjoying the springlike climate, outdoor recreation and vibrant culture. Colombia provides the amenities and infrastructure of a high-cost-of-living country at a low cost.