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70 Years Old and No Retirement Savings: What to Do Now

If you are 70 years old with no retirement savings, you can still take steps to improve your financial security, but you must act immediately. The most effective moves are to delay claiming Social Security until age 70 to maximize your benefit, drastically reduce your living expenses, pay off all debts, and consider selling your home to downsize or free up cash. While you may not achieve a luxurious retirement, you can avoid poverty and maintain independence with careful planning and disciplined execution.

Assess Your Current Financial Situation

Begin by taking a complete inventory of your assets, debts, and income. List all sources of income, including Social Security, pensions, part-time work, and any other earnings. Then list all debts, such as mortgage, car loans, credit cards, and medical bills. Finally, list all assets, including your home, vehicles, savings, and investments. This will give you a clear picture of where you stand. Many Americans in your age group have little or no retirement savings, so you are not alone. However, the situation requires urgent action.

Maximize Your Social Security Benefits

If you have not yet claimed Social Security, delaying until age 70 is one of the most powerful strategies available. Your benefit increases by about 8% per year after your full retirement age (66 to 67, depending on birth year) until age 70. This means your benefit at 70 could be 24% to 32% higher than at full retirement age. For example, if your full retirement age benefit is $2,000 per month, waiting until 70 could increase it to $2,480–$2,640 per month. This is a guaranteed, inflation-adjusted increase that is hard to match with any investment. According to the Social Security Administration, you can apply for benefits anytime between age 62 and 70, and the amount will be higher the longer you wait, up until age 70. Our breakdown of Retirement Planning Options Available in St. Louis covers the related details.

Cut Expenses to the Bone

At 70 with no savings, you must adopt a bare-bones budget. Review every expense and eliminate non-essentials. This includes dining out, subscriptions, cable TV, and luxury items. Consider downsizing your home or moving to a less expensive area. If you own a car, evaluate whether you can sell it and use public transportation or ride-sharing. Every dollar saved now is a dollar you won't need to earn later. Financial expert Dave Ramsey advises those in this situation to "live like you're completely bankrupt" because there is no wiggle room. This may mean making painful choices, but they are necessary to avoid running out of money.

Eliminate Debt Aggressively

Debt is a major obstacle when you have no retirement savings. Prioritize paying off high-interest debt first, such as credit cards, then car loans, and finally your mortgage if possible. Use any available cash, such as savings or proceeds from selling assets, to reduce debt. In a case discussed on The Ramsey Show, a 70-year-old couple had $25,000 in savings, a $27,000 mortgage, and an $11,000 car loan. Ramsey advised them to sell a third car (a roadster worth $10,000), pay off the car loan, keep $15,000 as an emergency fund, and put the rest toward the mortgage. The goal is to be debt-free so your Social Security and any work income can cover your living expenses.

Consider Selling Your Home

Your home may be your largest asset, and selling it can provide a significant cash infusion. If you have substantial equity, you could sell, buy a smaller home or condo outright, and have money left over to live on. For example, if your home is worth $250,000 and you owe $27,000, selling could net you over $200,000 after costs. You could then buy a condo for $100,000 and have $100,000 as a cushion. This reduces your ongoing housing costs (property taxes, maintenance, utilities) and gives you a lump sum to supplement Social Security. Avoid reverse mortgages, as they can lead to losing your home if you cannot keep up with expenses.

Explore Work Opportunities

Even at 70, you may be able to work part-time to supplement your income. Many employers value older workers for their experience and reliability. Consider jobs that are less physically demanding, such as retail, customer service, or consulting. If you have skills like bookkeeping, writing, or tutoring, you can freelance. The extra income can help cover expenses and reduce the need to draw down any savings. However, be realistic about your health and stamina. If you are unable to work, focus on maximizing Social Security and reducing expenses.

Seek Professional Guidance

Given the complexity of your situation, consider consulting a fee-only financial planner who specializes in retirement for low-income seniors. They can help you create a sustainable withdrawal plan, optimize Social Security, and navigate government benefits. You may also qualify for programs like Supplemental Security Income (SSI), Medicaid, or food assistance. A professional can help you identify all available resources. Be cautious of anyone selling high-commission products or promising unrealistic returns.

Communicate with Family

It is important to have honest conversations with your adult children about your financial situation. They may be able to offer support, whether financial, emotional, or practical. In some cultures, multigenerational living is common and can reduce housing costs for everyone. Suze Orman suggests discussing the possibility of living with a child or having a child live with you to share expenses. This can be a difficult conversation, but it is better than hiding the problem until it becomes a crisis.

Bottom Line

Being 70 with no retirement savings is a serious challenge, but it is not hopeless. By delaying Social Security, cutting expenses, eliminating debt, and possibly selling your home, you can create a more secure financial future. The key is to act now and make tough decisions. Remember, every month you delay reduces your options. Use the resources available, including government programs and professional advice, to build a plan that works for you.

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