Social Security was never intended to cover all retirement expenses, but that hasn’t stopped some people from trying to live on their government benefits alone.
“I think it’s feasible, and I see it all the time,” says Anna Rappaport, a fellow and past president of the Society of Actuaries. At age 84, she knows many of her peers are making do with limited incomes. “The question is, what kind of life do they lead?”
As of December 2024, the average retirement benefit from Social Security was $1,975 a month, which equals an annual income of $23,700 for a single person. The Social Security Administration reports that, among beneficiaries, 12% of men and 15% of women age 65 or older rely on the program for 90% or more of their income.
If you don’t have any retirement savings and expect to join their ranks, here’s how to make it work:
— Get out of debt before retirement.
— Pare down your monthly expenses.
— Find a cheaper place to live.
— Take advantage of senior discounts and assistance programs.
— Keep yourself active and healthy.
— Lean on family and friends.
— Try to work longer.
— Look for ways to earn money in retirement.
Get Out of Debt Before Retirement
Living on Social Security alone will be hard if a portion of your income must be used for debt payments. While you are still working, make it a priority to become debt-free.
If you have high-interest credit cards, start by directing any extra money in your budget to pay down one account. This can be the account with the largest balance or the one charging the most interest. Once it is paid off, redirect your extra money to another debt account. Continue this process until all your debt is paid off.
[Read: 10 Places to Retire Abroad on Social Security Alone]
Pare Down Your Monthly Expenses
With debt out of the way, you can work on creating a retirement budget that will account for essential expenses. If you can’t cover all your current bills with your expected Social Security payment, it’s time to start slashing what you can. That may mean canceling subscriptions, eating at home and using public transportation.
“It all boils down to what you can cut from expenses,” says Britta Ferguson, a certified financial planner and senior vice president of Wealth Enhancement Group in Coronado, California. “You really need to make sure that you’re living within your means.”
Find a Cheaper Place To Live
“When you look at the cost of housing, it’s a major part of what people spend,” according to Rappaport. Those costs can vary significantly, based on geographic location and type of housing.
“If you’re trying to live in San Francisco on only Social Security, that’s going to be a lot more challenging,” Ferguson says.
Instead, someone may need to move to a less costly part of the country or find housing with fewer expenses. “Mobile home communities offer a tremendous opportunity,” Rappaport says.
Finding a roommate or moving in with family members can also be an option to cut costs.
[Read: The Cheapest Places to Retire Abroad on $1K Per Month]
Take Advantage of Senior Discounts and Assistance Programs
Senior discounts are often available at restaurants, grocery stores, retail shops and more. Look for these little ways to save money, but be sure you aren’t simply spending money to save money. In other words, you may get a discount at the local diner, but making your meals at home could be cheaper.
Also, keep an eye out for assistance programs designed for low-income seniors. If you are living on Social Security alone and have limited assets, you might qualify for one of the following:
— Extra Help from Medicare, which lowers some health care costs
— Food assistance through the United States Department of Agriculture
— Bill credits from local utility companies
— Tax Counseling for the Elderly from the Internal Revenue Service, which offers free tax preparation services
— Other resources from state and local community organizations
Keep Yourself Active and Healthy
In 2023, households led by a person age 65 or older spent $8,027 on health care costs, according to the Bureau of Labor Statistics. However, you might be able to reduce how much you spend by fostering healthy habits.
Physical activity in seniors may improve heart health, reduce cancer and reduce the risk of falls, among other things, according to the Centers for Disease Control and Prevention. Moreover, physically active people may live independently for longer, avoiding expensive long-term care costs.
Lean On Family and Friends
Family and friends can sometimes help fill the gaps when you are living on a limited budget. Neighbors can be a source of assistance, too. That’s one reason to consider retirement communities.
“People are helping all the time,” Rappaport says of her Florida community. From pitching in to clean a yard to sharing the harvest from a garden, people are quick to lend a helping hand however they can. “I’ve had an army of people helping me,” Rappaport notes.
Rather than paying for a service, see if someone in your personal network can help first. However, don’t expect people to always say yes, and for the sake of maintaining positive relationships, never make someone feel bad if they say no.
Try To Work Longer
Your Social Security benefit amount depends on many factors, including your age when you begin payments.
“There is a real opportunity to stretch those dollars further by working a little longer and claiming later,” says Martha Shedden, president and co-founder of the National Association of Registered Social Security Analysts.
In 2025, the maximum Social Security benefit amounts are as follows:
— At age 62: $2,831
— At full retirement age: $4,018
— At age 70: $5,108
Your actual benefits will depend on your work history.
Claiming benefits early means a permanent reduction of up to 35% in your monthly benefit amount. At full retirement age — 67 for those born in and after 1960 — you’ll receive your full benefit based on your earnings history. If you wait past your full retirement age, you’ll be eligible for an 8% boost in benefits each year until age 70.
By working a few more years and delaying the start of Social Security benefits, you can significantly increase how much money you’ll have to live on in retirement.
[Read: Never Retire: Why People Are Still Working in Their 70s and 80s.]
Look for Ways to Earn Money in Retirement
Some people may find that Social Security alone isn’t enough to live on, regardless of how much they trim their budget.
“They really need to think about whether there is a way they can make a little extra income,” Rappaport says.
For those living in a retirement community, there could be opportunities to walk dogs, drive residents to the airport or do tasks for neighbors in exchange for a small fee. Others may need a steady paycheck.
“There are many part-time jobs you could easily pick up,” Ferguson says. Retirees may find part-time work in their previous industry or work in retail stores, where shift schedules may be flexible.
Of course, the best course of action would be to plan for retirement far in advance and save money in a 401(k), IRA or similar account. Then, you might not have to worry about living on Social Security alone during your golden years.
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Is It Possible to Live on Social Security Alone in 2025? originally appeared on usnews.com
Update 03/31/25: This story was published at an earlier date and has been updated with new information.
