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What do you do when your 60th birthday rolls around and you haven’t saved much, if anything, for retirement?
Picture Ryan, a single man from Little Rock, Ark., finding himself in this situation shortly after he lost his job during a company restructuring. He was looking at another two years before he could claim Social Security benefits — and at a reduced benefit, with no idea how to make ends meet for another 20 years or more.
According to an AARP survey from 2024, 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 to take their benefits 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 less (2).
The good news is that people in this situation still have a viable path to financial security, so long as they make the right moves.
The key is to raise your income where you can, take advantage of all the benefits available to you, and cut your fixed costs until the math works. The process won’t be easy, but with discipline and determination, you can put your anxiety to rest.
Doomscrolling personal finance websites can give you a false impression that your situation is dire. For instance, according to a study from Northwestern Mutual, Americans say they need a “magic number” of about $1.26 million to retire comfortably (3).
But how accurate is that number? Lump sums like this are usually back-projected from a rule developed in 1994 by the 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 for a 30-year retirement. But if you’re able to cut back, you can make do with much less (4).
Assuming you are healthy and able to work, it’s important to delay claiming your Social Security benefits for as long as you can. Delaying Social Security until full retirement age, and possibly even to 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, claiming at 70 pays roughly 124% of your full benefit (5).
One way to live more comfortably while delaying Social Security is to build up your emergency savings so that you don’t have to dip into retirement accounts early. A high-yield account, such as a Wealthfront Cash Account, can be a great place to grow your emergency funds, offering both competitive interest rates and easy access to your cash when you need it.
A Wealthfront Cash Account provides a base variable APY of 3.50%, but new clients can get a 0.65% boost over their first three months for a total APY of 4.15% provided by program banks on your uninvested cash. That’s over 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 wire transfers, you can ensure your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
Another way to buy time so you can claim Social Security later is to get a job so that you can keep getting consistent income.
American Job Centers can connect you to openings, offer short training sessions and link you with local hiring help (6). Contract and gig work, like freelancing or working with a delivery app, may be able to help you, but don’t forget to set aside money for self-employment and income-related taxes.
If your current or prospective job doesn’t offer a 401(k), you could also open your own tax-advantaged account and automate contributions to keep your nest egg growing consistently. You can contribute up to $7,000 in an IRA for the 2025 tax year if you’re under age 50, and if you’re 50 or older, you may qualify for an additional catch-up contribution of $1,000 — bringing the total to $8,000 (7).
If you earn self-employment income, you have other retirement plan choices available. If you have self-employment income, consider a SEP IRA or a one-participant “solo” 401(k).
A SEP allows you, as your own 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 employee (up to $23,500 in 2025) and employer (up to 25% of compensation), with the same $70,000 overall limit (9).
Through his long-time bank, Ryan was able to consult a personal financial advisor for free — and he received some bedrock advice. He was told that your very first step in cutting costs should be to build a zero-based budget for the next 60 days, and track every expense to confirm your real baseline budget (10).
If managing a budget sounds overwhelming to you, apps like Rocket Money can simplify the process.
Rocket Money tracks and categorizes your expenses, providing a clear view of your cash, credit and investments in one place. It can even uncover forgotten subscriptions, helping you cut unnecessary costs and save potentially hundreds annually.
You may also want to audit your monthly costs to make sure you’re getting the best price for any necessary expenses.
For instance, according to the American Automobile Association (AAA), the total cost of owning and operating a new vehicle in 2025 has climbed to around $12,297 per year — or $1,024.71 per month.
By using OfficialCarInsurance.com, you can easily compare quotes from multiple insurers, such as Progressive, Allstate and GEICO, to ensure you’re getting the best deal.
Then there’s housing costs. While these are often a burden, there are also ways to lower them. Is your current space more than you need? Consider downsizing, whether that means moving to a smaller place if you rent, moving into a shared rental with roommates (older people do it all the time!), or, if you own your home, making extra income by renting out a room.
Given how much you’re struggling financially, you could benefit from exploring all possible options. When it comes to food or income assistance (such as SNAP or LIHEAP), Medicaid, or disability — if you qualify, you should apply.
You might want to consider joining organizations like AARP for discounts on almost everything — from prescriptions and dental plans to travel, entertainment and insurance.
As one of the most trusted organizations for older Americans, AARP not only offers money-saving perks, but can also help you make informed financial and health decisions.
AARP members get access to guides that can help you make the most of Social Security, choose the right Medicare plan, and uncover other government benefits — potentially saving you thousands.
You could also qualify for a housing voucher through your local public housing agency. Voucher formulas aim for tenants to pay roughly 30% of adjusted income toward rent and utilities (11). If your income meets requirements, the Senior Community Service Employment Program offers paid part-time community placements with skills training that can lead to long-term jobs (12).
Being 60 with no savings might feel daunting. Many Americans dream of a seven-figure nest egg. But remember that with dedication and diligence, many are able to retire with far less.
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) U.S. Department of Housing and Urban Development (11); Senior Community Service Employment Program (12)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
