At 65, having $120,000 saved for retirement might not stretch as far as you’d hoped.
If you follow the 4% rule — a guideline that suggests withdrawing 4% of your retirement savings each year to make your money last about 30 years — you’d only be able to take out around $4,800 annually. That breaks down to just $383 per month.
Now, add your $1,700 Social Security check to the mix, and your total monthly income sits at about $2,083. But your expenses total $3,900 a month, leaving you nearly $1,900 short every single month — and that doesn’t even include emergency costs like medical bills.
And don’t forget about taxes. If you withdraw aggressively to cover your shortfall and your investments grow at 7% annually, being in a 22% tax bracket means you could run out of money in just 5 years.
Take on Part-Time or Flexible Work
If your current income isn’t cutting it, picking up a part-time or even full-time job can help. You can still collect Social Security while working, but if you’re not yet 67 (full retirement age), you could see some of your benefits temporarily reduced.
In 2025, for every $2 you earn above $23,400, $1 will be withheld from your Social Security payments. But don’t stress too much — once you hit full retirement age, your benefits will be recalculated to credit you for what was withheld. So, work can help boost your future benefits while giving you the extra cash you need now.
Tap Into Home Equity
If you own a home, you may be sitting on a valuable resource — equity. With home prices soaring, the average homeowner now has around $311,000 in equity (as of Q3 2024, per CoreLogic). You can use this equity in a few smart ways, such as taking out a home equity loan, applying for a HELOC (home equity line of credit), or even selling your home and downsizing.
These options can free up cash for your retirement needs or help cover big expenses like healthcare, renovations, or debt repayment. And the best part? Home equity loans typically have lower interest rates than credit cards or personal loans.
Platforms like LendingTree can help you compare loan offers from multiple lenders in just minutes — just answer a few questions and see up to five offers side-by-side.
Explore Alternative Investments
Investing in dividend-paying stocks can generate some steady monthly income, but don’t stop there. Diversifying your investments outside the stock market can help manage risk.
With limited savings, you might think real estate investing is out of reach, but not with Arrived. This platform allows you to invest in shares of rental or vacation properties with as little as $100.
You’ll earn quarterly dividends and potentially benefit from long-term property appreciation — all without becoming a landlord.
Just browse vetted properties on their platform, pick one you like, and start investing with a small amount.
Make Everyday Spending Work for You
Another overlooked income source? Making your everyday spending go further. Acorns makes this simple by rounding up your everyday purchases and investing the spare change into a diversified ETF portfolio, managed by experts at firms like Vanguard and BlackRock.
Say you buy a coffee for $3.25. Acorns rounds it up to $4 and invests the extra 75 cents. It’s a passive way to grow your retirement savings bit by bit, every day.
Ways to Cut Back Without Sacrificing Comfort
If working or tapping into your home equity isn’t an option, cutting expenses becomes even more important.
Millions of retirees rely solely on Social Security to get by. 39% of men and 44% of women rely on it for at least half of their income, according to the SSA.
For some — about 12% of men and 15% of women — it covers 90% or more. But remember, Social Security was only meant to replace about 40% of your pre-retirement income.
One of the most effective ways to cut costs is to make one big change instead of trying to trim every little expense. For example, relocating to a cheaper city or downsizing your home can drastically lower your cost of living and free up more of your budget.
Lower Transportation Costs
Car ownership can quietly drain your budget. According to AAA, the average cost of owning and operating a new car in 2025 is about $12,297 per year — that’s over $1,000 per month.
A big chunk of that comes from insurance. The national average for full-coverage car insurance in 2024 was $2,149 per year (about $179/month), according to Forbes. Rates can vary widely depending on where you live, your driving history, and your vehicle.
Want to cut your auto insurance costs? Try shopping around with OfficialCarInsurance.com — they compare quotes from major insurers like GEICO, Allstate, and Progressive. You might find rates as low as $29/month, and it only takes two minutes.
Get Expert Financial Advice
If all these options feel overwhelming, or you just want to make sure you’re on the right track, it might be time to consult a financial advisor. They can help you build a personalized retirement plan, suggest ways to generate more income, and offer strategies to protect and grow what you’ve saved.
Advisor.com connects you with vetted financial advisors in your area. Just answer a few simple questions, and you’ll get matched with a professional who can help you navigate your retirement goals.
You can check out their profiles, read reviews, and even schedule a free consultation — no obligation required.