A growing number of Americans enter retirement with little or no accumulated savings, yet manage to sustain basic living expenses through a mix of Social Security, part-time work, and cost-cutting strategies. The trend underscores widening financial insecurity among older adults in the U.S.
- Over 24 million U.S. retirees have zero or negligible retirement savings
- Median retirement savings for ages 65–74: $105,000
- Social Security averages $1,900/month, supporting 60% of zero-savings retirees
- 18% of retirees aged 65–74 remain employed part-time
- Reverse mortgage volume rose 12% in 2024 to over 620,000 active loans
- Phased retirement and cost-cutting strategies are becoming common coping mechanisms
More than 24 million Americans aged 65 and older retire with zero or negligible retirement savings, according to recent data from the Federal Reserve’s 2024 Survey of Consumer Finances. This figure represents over 40% of the total retiree population, highlighting a systemic challenge in long-term financial preparedness. Among those with no savings, nearly 60% rely solely on Social Security for income, which averages $1,900 per month nationally. The median retirement savings for Americans aged 65 to 74 stands at $105,000, a sum that, at typical withdrawal rates, lasts only about 14 years. In contrast, individuals with over $500,000 in savings can expect their funds to last 25 years or more under conservative spending models. This disparity underscores the financial vulnerability of a significant portion of retirees who must stretch limited resources across decades. To bridge the gap, many retirees supplement income with part-time work, with approximately 18% of those aged 65–74 currently employed. Others downsize housing, relocate to lower-cost areas, or rely on family support. Some tap into home equity through reverse mortgages, with over 620,000 such loans active in 2024, up 12% from the prior year. Market impacts include rising demand for senior housing in rural and Sun Belt regions, as well as increased interest in gig economy roles among retirees. Employers are also adjusting policies to retain older workers, with companies like Walmart and Kroger expanding flexible scheduling for employees over 60. Financial advisors increasingly recommend phased retirement and budgeting tools to help retirees manage extended lifespans without exhausting resources.