Are you staring at your bank account wondering how on earth you’re gonna retire with basically nothing saved? Trust me, you’re not alone. According to recent data, nearly 40% of Americans have zero retirement savings, and even those who do save only have a median of about $87,000 tucked away. That’s nowhere near enough for most folks.
Many people I’ve talked to are scared about their golden years, and I understand why. It’s scary to think about retiring broke. But there is good news: you can retire with little or no money. Is it hard? Yes. Is it impossible? No.
Let me share some real-world strategies that can help you retire even if your savings account is looking pretty sad right now.
The Reality Check: What Happens When You Don’t Save Enough
Before jumping into solutions, let’s be honest about what happens when retirement savings fall short. Financial advisors see these scenarios play out all the time:
- Working until you die: Many retirees find themselves taking part-time jobs well into their 70s and 80s just to make ends meet.
- Drowning in debt: Without adequate savings, some retirees rely heavily on credit cards and loans, creating a cycle of debt.
- Becoming a burden on family: Adult children often end up supporting parents who didn’t save enough.
- Drastically downsizing dreams: Instead of traveling or pursuing hobbies, many retirees with inadequate savings spend retirement just trying to cover basic expenses.
One financial advisor said this about his client John: “In his fifties, John wasn’t putting money into his accounts; instead, he was taking money out.” When the market crashed his balances plummeted. The man is now in his 60s and has taken on a full-time job even though he should be thinking about retirement. “.
7 Strategies to Retire With No Money
1. Maximize Your Social Security Benefits
Social Security will likely be your financial lifeline if you have no savings. The average monthly benefit in 2025 is around $1976 according to the Social Security Administration. That’s not a lot, but it’s something to work with.
What you need to know:
- You need at least 40 credits (about 10 years of work) to qualify
- Your benefit is based on your 35 highest-earning years
- Waiting until full retirement age (67 for those born after 1960) maximizes your benefits
- If you didn’t work for 35 years, zeros get factored in, reducing your benefit
Tip: Check to see if you can get spousal benefits based on the work record of your current or former spouse, even if you haven’t worked much.
2. Downsize Your Lifestyle (Like, Seriously Downsize)
When you have little savings, reducing expenses becomes critical. This might mean making some tough choices:
- Housing: Consider selling your home and moving to a much smaller place or a lower-cost area. Moving from Boston to Phoenix, for example, can cut your cost of living by about 20%.
- Transportation: Can you get by with one car or no car? Public transportation, biking, or walking can save thousands annually.
- Entertainment: Free community events, libraries, and parks can replace costly entertainment options.
One extreme but effective option? Consider relocating abroad. In countries like Mexico or Portugal, some retirees live comfortably on $1,200-$2,000 per month.
3. Eliminate All Outstanding Debt
Debt payments can crush a retiree on a fixed income. Before retiring:
- Prioritize paying off high-interest debt first (usually credit cards)
- Consider downsizing to eliminate your mortgage
- Avoid taking on new debt at all costs
If you’re able to pay off your outstanding debt, receive Social Security benefits and get a pension, you may be able to enjoy a comfortable retirement lifestyle. It’s important to note that the key to making a pension plan work is to stay at the same employer for a long time.
4. Work Part-Time in Retirement
Working in retirement isn’t ideal, but it’s often necessary. About 20% of adults over 65 are either working or looking for work, up from 10% in 1985.
Good part-time options include:
- Consulting in your former field
- Retail or service industry jobs
- Gig economy work (driving, food delivery, etc.)
- Tutoring or teaching
- Pet sitting or house sitting
Even $500-$1,000 extra per month can make a huge difference when combined with Social Security.
5. Take Advantage of Government Benefits
Beyond Social Security, several programs can help low-income retirees:
- Medicare: Provides health coverage starting at age 65
- Medicaid: Can cover medical costs Medicare doesn’t if you qualify based on income
- SNAP (food stamps): Over 41 million Americans use this program to help cover food costs
- Housing assistance: Programs like Section 8 can subsidize housing costs
- Energy assistance: Programs like LIHEAP help with utility bills
6. Consider Alternative Housing Arrangements
Housing typically eats up about 33% of a retiree’s budget. Getting creative here can save you thousands:
- Shared housing: Living with family or roommates splits costs dramatically
- House sitting: Some retirees house-sit full-time, moving between homes
- Tiny homes or RV living: Drastically reduces housing costs
- Co-housing communities: Provides community and shared resources
7. Build a Minimal Emergency Fund
Even with no retirement savings, try to build a small emergency fund of $500-$1,000. This prevents minor emergencies from becoming financial disasters.
Real-Life Examples: The Good, Bad, and Ugly of Retiring Without Savings
The Bad: Tony’s Story
Tony owned a small family business with his brothers. He saved very little outside the business, assuming he could sell his share when ready to retire. When a heart attack forced early retirement, he received much less than expected from the company. After his death, his wife Mary suffered significant emotional stress from financial pressures despite her children’s support.
The Ugly: Glenn and Mary’s Story
At ages 59 and 47, this couple had only $5,000 in a 401(k), owed $10,000 on vehicles, had a $250,000 mortgage, and just $300 in the bank! They spent money as soon as it hit their account and never learned to budget. While they eventually created a budget and found higher-paying work, their years of indiscriminate spending put retirement very far out of reach.
The Better: Creative Solutions
One financial advisor shared the story of a client who couldn’t afford to stay in their beloved home. After running the numbers, the advisor had to deliver the hard news that their money would run out by age 72 if they stayed. The solution? Selling their home and relocating to an area with much lower housing costs. Not ideal, but it made retirement financially possible.
Comparison: Options for Retiring With No Money
| Strategy | Potential Monthly Savings/Income | Main Advantage | Main Challenge |
|---|---|---|---|
| Relocating abroad | $1,000-$2,000 savings | Dramatically lower cost of living | Cultural/language barriers |
| Part-time work | $500-$2,000 income | Keeps some income flowing | Reduces free time |
| Shared housing | $500-$1,500 savings | Cuts biggest expense | Less privacy |
| Government benefits | Varies | Reliable safety net | Strict eligibility rules |
The Emotional Reality of Retiring With No Money
Let’s be real – retiring with no money requires more than just financial adjustments. It means:
- Resetting expectations about what retirement looks like
- Finding fulfillment through free or low-cost activities
- Focusing on relationships and health rather than material possessions
- Developing resilience and adaptability
One financial advisor notes: “Sometimes, not saving enough for retirement doesn’t spell disaster, but kills dreams instead. Think of everyone you know who wanted to travel the world during retirement, but sits at home watching their pennies instead.”
Final Thoughts: It’s Not Ideal, But It’s Possible
Retiring with no money isn’t anyone’s dream scenario. It requires sacrifice, creativity, and flexibility. But with careful planning and a willingness to adapt, you can create a modest but meaningful retirement.
The most important steps are:
- Maximize Social Security benefits
- Dramatically reduce expenses, especially housing
- Eliminate debt before retiring
- Find flexible income sources
- Utilize all available government programs
- Consider alternative housing arrangements
- Adjust your expectations while focusing on what truly matters
Remember, while financial security makes retirement easier, it’s not the only ingredient for a fulfilling life. Many people with modest means find happiness through strong relationships, community involvement, and simple pleasures that don’t cost much.
Have you found creative ways to stretch limited retirement funds? I’d love to hear your strategies in the comments below!
How to Retire As Early As Possible (Starting from $0)
FAQ
How to retire if you have no money?
If you find that you need more than Social Security to cover your retirement needs, here are some things you can do: Make a detailed budget to cut costs Downsize your home. Continue working. Take advantage of tax-advantaged retirement plans. Open a traditional or Roth IRA.
What is the $1000 a month rule for retirement?
The “$1,000 a month rule for retirement” is a simple way to figure out how much you need to save to have a steady monthly income in retirement. Usually, you’ll need to save $240,000 for every $1,000 you want to make each month. Based on a 5% annual withdrawal and 5% annual return, this rule says that taking out $1,000 a month from a $240,000 portfolio would give you that much income without using up your savings.
How many people retire with no savings?
Surveys have found that the number of Americans without retirement savings is between 20% and 46%. Low-income households are most likely to lack savings, often because of limited access to retirement plans. Older Americans without savings face the highest risk, since they have little time left to catch up.
What happens if you retire and have no money?
If they’ve got no other income beyond the state pension, and no savings, and have to pay rent, they’d probably be eligible for pension credit and housing benefit.
How to retire with no money?
Consider working with a financial advisor as you plan for retirement. If you’re among those approaching retirement with little saved, the first thing to do is to get the clearest possible picture of where you stand financially. Once you know that, you’ll be able to better approach the challenge of how to retire with no money.
Is retirement without savings possible?
Retirement without savings is possible with careful planning and smart financial decisions. Planning for retirement with no money can seem like a daunting task, but it is achievable with the right approach. By making strategic lifestyle choices and exploring alternative income sources, individuals can still enjoy a fulfilling retirement.
How do you get to retirement if you’re still able to work?
There are so many creative ways to get to retirement that you love,” said Gucciardi. If you’re still able to work, consider extending your career a bit longer—this gives you extra time to build up your savings, a shorter retirement to fund, and possibly the ability to delay collecting Social Security benefits.
How can I save money for retirement?
1. Go through your expenses and look for ways to cut back. The goal is to free up as much money as you can to save for retirement (see #2 below) or pay down debt (see #3 below) and to reduce your expenses in retirement as well so you can eventually live on less income. Look at your last three months of credit card and bank statements.
Should you delay retirement if you don’t have enough money?
If you don’t have enough money to retire, you may have to delay retirement. In fact, the Thrivent Readiness Survey finds that Americans are rethinking conventional retirement—30% of people plan to retire gradually, and 5% don’t have plans to retire at all. Whether you work part-time or continue working full-time, it doesn’t have to be a burden.
How do I find out if I’m on track to retire?
You can also use retirement savings tables online to help you figure out if you’re on track to retire based on your age and income. At the end of the day, these are just general guidelines, so make sure to personalize them. After you’ve taken stock of your finances, there are many ways to try to fund the gap in your retirement savings.