Making It Work: How Retirees Survive on Social Security Alone

The nonprofit advocacy group The Senior Citizens League (TSCL) estimates that 24.6 million seniors in the U.S., or 44% of the country's retirement-age population, depend on Social Security benefits for 100% of their income. That's up from 39% in 2025. With 54% of those seniors living on less than $2,000 per month, the spotlight is on how aging Americans get by.

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The income gap

The average cost of living for an older household -- including housing, food, and healthcare in retirement -- is $3,161. Of that, $662 is typically spent on food, and $650 is spent on healthcare.

The natural inclination may be to sacrifice one expense to pay another, but that leads down a dangerous path. The reality is that living on Social Security alone requires a fairly extreme lifestyle.

Extreme budgeting

Cutting things once covered by a discretionary fund is the first step. A senior living on Social Security benefits alone begins by cutting nonessentials, such as subscriptions, streaming services, gym memberships, and clubs. Cuts may extend to dining out, entertainment, travel, and gifts.

Next come the larger-ticket items, like stretching food budgets by buying cheaper staples, buying in bulk, and taking advantage of senior meal programs.

To free up money in the short term, seniors may postpone or forgo important expenses such as home maintenance, car repairs, eye care, or dental work. While that may be a short-term fix, skipping important services can lead to longer-term problems.

Cutting housing costs

The average retiree spends about 36% of their monthly income on housing. For a retiree living on a very tight budget, housing is likely one of the first expenses examined. It's not at all uncommon for a senior living solely on Social Security benefits to reduce housing costs to stay afloat. Common approaches include:

• Relocating from a high-cost city or state to a lower-cost area where rent, taxes, and utilities are more affordable.
• Using the equity in their current home to buy a smaller, less expensive home outright.
• Renting a smaller home or moving to a senior housing complex.
• Taking in a roommate, moving in with an adult child to share housing expenses, or building a "granny flat" (accessory dwelling unit) on an adult child's property.

Other ways seniors cut costs

Here are some other ways costs are sometimes trimmed:

1. Using public assistance and community programs: Support from a nutrition program such as the Supplemental Nutrition Assistance Program (SNAP), a local utility assistance program, or Medicare-related programs that help cover healthcare costs can be helpful. Housing assistance programs and local senior-transportation services can also help.
2. Paying off debts before retirement: When a senior expects to live only on Social Security in retirement, they can make it a little easier by paying off high-interest debt before their last day of work.
3. Postponing retirement: Seniors can also maximize the amount of Social Security they receive by retiring later than originally planned.

In practice, getting by on Social Security benefits alone takes creativity. It may involve a blend of low housing costs, access to public benefits and local support programs, and a strong family or community network.

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