What do retirees do when they run out of money?


Editorial team Published on

People with no retirement savings primarily rely on Social Security, continued part-time work, government assistance, and family support.

According to data reported by organizations like USAFacts, nearly half of American households lack traditional retirement account savings, forcing older adults to adapt in several specific ways.

Primary Survival Strategies

  • Relying Solely on Social Security: Many older adults live entirely on monthly government benefits. The average benefit provides a modest baseline income, which often barely covers basic necessities.
  • Continuing to Work: People often delay full retirement or take part-time jobs in retail, customer service, or hospitality just to pay current bills.
  • Family Support: Many aging adults move in with their adult children or receive direct financial help with housing, food, and medical expenses.
  • Government and Social Safety Nets: Individuals turn to public assistance programs like Medicaid for healthcare, Supplemental Security Income (SSI), food stamps (SNAP), and subsidized housing or senior public apartments.
  • Drastic Cost Cutting: Surviving without savings requires completely eliminating non-essential spending, and for homeowners, relying on a fully paid-off mortgage to keep monthly housing costs low.