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What do you do when you turn 60 and haven’t saved much, if anything, for retirement?
Imagine Ryan, a single man from Little Rock, Ark., finding himself in this situation shortly after losing his job during a company restructuring. He was looking at two more years before he could claim Social Security benefits — and a reduced benefit, with no idea how to make ends meet for another 20 years or more.
According to a 2024 AARP survey, 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 for retired workers is $2,006.69 per month, according to the Social Security Administration, but that number includes high earners and those who waited until 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 smaller (2).
The good news is that people in this situation still have a viable path to financial security as long as they make the right moves.
The key is to raise your income where you can, take advantage of all the benefits available and reduce your fixed costs until the math works out. The process won’t be easy, but with discipline and determination, you can stop your anxiety.
Doomscrolling personal finance websites can give you the false impression that your situation is dire. For example, according to a Northwestern Mutual study, Americans say they need a “magic number” of about $1.26 million to retire comfortably (3).
But how accurate is this number? Lump sums like this are usually projected back from a rule developed in 1994 by 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 a 30-year retirement. But if you can cut back, you can get by with a lot less (4).
Assuming you’re healthy and able to work, it’s important to delay claiming Social Security benefits as long as you can. Delaying Social Security until full retirement age, and possibly even until age 70, increases your guaranteed monthly check for life because you earn delayed retirement credits that add about 8% per year after full retirement age. For those born in 1960 or later, the claim at age 70 pays about 124% of the full benefit (5).
Read more: Warren Buffett used 8 solid, repeatable rules to turn $9,800 into a $150 billion fortune. Start using them today to get rich (and stay rich)
One way to live more comfortably while delaying Social Security is to build up your emergency savings so you don’t have to dip into your retirement accounts early. A high-yield account like a Wealthfront cash account can be a great place to grow your emergency funds, offering both competitive interest rates and easy access to cash when you need it.
A Wealthfront cash account offers a base variable APY of 3.50%, but new customers can get a boost of 0.65% in the first three months for a total APY of 4.15% offered by program banks on your uninvested cash. That’s more than ten times the national deposit savings rate, according to the FDIC’s November report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic bank transfers, you can ensure that your funds remain accessible at all times. Additionally, Wealthfront Cash account balances up to $8 million are FDIC insured through program banks.
Another way to buy time to be able to claim Social Security later is to get a job so you can continue to earn consistent income.
American Job Centers can connect you with jobs, provide short training sessions, and connect you with local employment assistance (6). Contract and work jobs like freelancing or working with a delivery app can help, but don’t forget to set aside money for self-employment and income taxes.
If your current or potential job doesn’t offer a 401(k), you can also open your own tax-advantaged account and automate contributions to keep your growth steady. You can contribute up to $7,000 to an IRA for the 2025 tax year if you’re under 50, and if you’re 50 or older, you can qualify for an additional $1,000 catch-up contribution, bringing the total to $8,000 (7).
If you earn self-employment income, you have other retirement plan options. If you have self-employment income, consider a SEP IRA or a “solo” 401(k) with only one participant.
A SEP allows you, as an employer, to contribute up to 25% of your net self-employment earnings, up to a limit of $70,000 in 2025 (8). A solo 401(k), on the other hand, allows contributions as both an employee (up to $23,500 in 2025) and an employer (up to 25% of compensation), with the same total limit of $70,000 (9).
Through his longtime bank, Ryan was able to consult a personal financial advisor for free — and get some basic advice. She was told that the first step in cutting costs should be to build a budget from scratch for the next 60 days and track every expense to confirm your true baseline budget (10).
If managing a budget sounds overwhelming, apps like Rocket Money can simplify the process.
Rocket Money tracks and categorizes your spending, providing a clear picture of your cash, credit and investments in one place. It can even uncover forgotten subscriptions, helping you cut unnecessary costs and save hundreds annually.
For a small fee, the app can also negotiate lower rates on your monthly bills, making it a valuable tool to keep your finances on track.
You may also want to audit your monthly costs to ensure you are getting the best price for any necessary expenses.
For example, according to the American Automobile Association (AAA), the total cost of owning and operating a new vehicle in 2025 has risen to about $12,297 per year — or $1,024.71 per month.
Using OfficialCarInsurance.com, you can easily compare quotes from multiple insurers like Progressive, Allstate and GEICO to make sure you’re getting the best deal.
In just two minutes, you can find rates as low as $29 per month.
Then there are housing costs. Although these are often a burden, there are ways to reduce them. Is your current space more than you need? Consider downsizing, whether that means moving to a smaller place if you’re renting, moving into a shared rental with roommates (older people do it all the time!) or, if you own your home, getting extra income by renting out a room.
Considering how much you are struggling financially, you may benefit from exploring all possible options. When it comes to food or income assistance (like SNAP or LIHEAP), Medicaid, or disability — if you qualify, you should apply.
You may want to join organizations like AARP for discounts on just about everything—from prescriptions and dental plans to travel, entertainment, and insurance.
As one of the most trusted organizations for older Americans, AARP not only provides money-saving benefits, but it can also help you make informed health and financial decisions.
AARP members have access to guides that can help you get the most out of Social Security, choose the right Medicare plan, and discover other government benefits — potentially saving you thousands.
Join AARP today and get 25% off your first year.
You may also qualify for a housing voucher through your local public housing agency. Voucher formulas aim for tenants to pay about 30% of adjusted income for rent and utilities (11). If your income meets the requirements, the Community Service Employment Program for Seniors offers part-time paid community internships with skills training that can lead to long-term employment (12).
Being 60 years old and without savings might discourage you. Many Americans dream of a seven-figure nest egg. But remember that with dedication and diligence, many can retire on much less.
We only rely on verified sources and credible third-party reports. For details, see our ethics and editorial guidelines.
AARP (1); Social Security Administration (2); Northwestern Mutual (3); Prudential (4); Social Security Administration (5); American Job Centers (6); IRS (7), (8), (9); Citizens Bank (10) US Department of Housing and Urban Development (11); Community Service Employment Program for Seniors (12)
This article provides information only and should not be construed as advice. Offered without warranty of any kind.
