How to Retire With No Money

Many Americans are retiring with little to no savings due to a combination of economic, social and policy-driven factors. The 2022 Survey of Consumer Finances (SCF) ¹ found that nearly 40% of Americans have no retirement savings at all, and among those who do, the median savings is only $86,900—far from sufficient to support even a modest retirement.

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. From there, we outline some action steps to take to make retiring more feasible.

1. Review Social Security Benefits

Social Security is a program that you pay into during your working years and then receive a benefit from when you retire. Many retirees rely on support from their Social Security benefits to help cover their retirement expenses.

To qualify for Social Security benefits, you must have at least 40 credits or 10 years of work. Your benefit amount is based on your highest-earning 35 years of work, your earnings during your career and the age at which you apply for benefits. Essentially, the more you earn throughout your career and the longer you wait to take your benefits, the higher your benefit amount will be.

If you didn’t work for 35 years or more, the Social Security Administration will add zeros to those years, which could drastically lessen your benefit amount. Therefore, if you want to maximize your benefits, you should try to earn as much as possible during your working years and wait until age 67 (for those born after 1960), which is considered full retirement age.

It’s important to note that Social Security may only cover a portion of your expenses in retirement. In January 2025, the average monthly benefit payment was $1,976, according to Social Security Administration (SSA) data.

2. Reduce Your Living Expenses

By downsizing your lifestyle, you can help ease the financial burden of retirement. For starters, evaluate your largest living costs, such as your mortgage, senior care or vehicle expenses. Once you identify your largest expenditures, you can begin looking for less expensive alternatives.

For example, if you’re living in a three-bedroom house in Seattle, you may want to consider moving to a two-bedroom condo in Tuscaloosa, Alabama. Even if you don’t want to downsize in retirement, you can often achieve big savings by just moving to a less expensive area. If you live in Boston and move to the Phoenix suburb of Scottsdale, for example, your cost of living will decline about 20%.

If you want to compare the cost of living where you are with other states, this cost of living calculator can provide much of the information you’ll need.

3. Pay Off Outstanding Debt

Another way to reduce your living expenses in retirement is to pay off any outstanding debt. This debt could be preventing you from saving effectively and, as a result, living as full a life as possible in retirement. 

Typically, the most efficient approach to pay off your debt is to focus on the debt with the highest interest rates first. Often, this is  credit card debt. Other common debts in retirement are mortgages, auto loans and parent loans for children’s education. You can start to pay down your debt by putting any extra cash towards it while avoiding taking on any additional debt.

You may want to speak with a financial advisor to see which debts are most important to pay down first, and if you should allocate some of your savings to get rid of interest-accruing debt.

4. Secure a Pension

A pension is a retirement plan that provides retired employees with a guaranteed monthly income. While pensions are now few and far between, some organizations and corporations still offer them. If you don’t currently work for a company that has a pension plan, you may consider applying to work for one.

Pension plans often apply to teachers, police, fire workers, federal or state employees and military personnel. However, some big corporations like General Mills and Eli Lilly & Co. also offer pensions to their employees. 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. Most pensions give benefits based on the employee’s tenure and compensation. If you job-hop, your pension may not be large enough to cover your retirement costs.

5. Consider Working in Retirement

According to a report from United Income, 20% of adults over the age of 65 are either working or looking for work. This is up from 10% in 1985. If you’re in good health, you may want to consider working in your retirement years – or delay your retirement for a few years. If you’ve become accustomed to a certain way of life you may not be willing to give that up when you leave the workforce.

To maintain your lifestyle once you retire, you could consider working a part-time job that can help you afford certain living expenses. Working part-time also allows you to reap some of the benefits of retirement without being fully retired. For example, you may still be able to volunteer or play tennis with your friends. If you can, you should look for a job that offers benefits like paid vacation time.

While you may not make as much money as you did before you retired, working can help you supplement your income.

To maintain your lifestyle once you retire, you could consider working a part-time job. This can help you afford certain living expenses. While you may not make as much money as you did before you retired, working can help you supplement your income. 

Working part-time also allows you to reap some of the benefits of retirement without being fully retired, such as clocking fewer hours working and having more time to spend on hobbies and with family and friends. You may even be able to find a job that offers  benefits like paid vacation time, making it that much easier to take time off to travel in your golden years.

6. Aim to Boost Retirement Savings

If you’re approaching retirement with little saved, you can still make progress by using catch-up contribution rules. These allow people aged 50 and older to add more money to tax-advantaged accounts each year, giving you a chance to save more in less time.

Another option is to use a health savings account (HSA), if you qualify. HSAs let you save pre-tax money. It then grows tax-free, and you can take tax-free withdrawals for eligible medical costs. In retirement, you can also use HSA funds for non-medical purposes after age 65 without penalties, though they’ll be taxed as regular income.

Adjusting your investment mix can also help to increase your retirement account balance. Adding more dividend-paying stocks, bonds or other income-producing assets can create a steady cash flow while keeping some growth potential. At this stage, keeping investment fees low is key because high costs reduce long-term returns.

Bottom Line

Facing retirement with no savings can be frightening. But the good news is you have a number of strategies you can use to put yourself in the best possible position. First, get as precise a picture as possible of where you stand financially. Then, see what Social Security will get you, and if you have a pension, what your monthly income from that will be. Also aim to cut your expenses and pay off debt, and consider working. And while it may not be ideal, if you haven’t yet retired, think about delaying retirement. This can help you get closer to the retirement that you planned for.

Retirement Planning Tips

• Consult with a professional to plan for your specific goals. A financial advisor can help you determine the best path toward your best retirement. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Check on your Social Security payments. If Social Security figures to be a primary source of retirement income, you should figure out how much you’re in line to receive. Find out how much you’ll get from Uncle Sam with our free Social Security calculator.

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