I’m 65 years old, have zero savings and can’t afford to retire — but I really don’t want to work until I die. What can I do?

How to retire at 65 on no savings© Oleg Golovnev/Shutterstock

A 2024 report by AARP found that 20% of Americans aged 50 and over have no retirement savings at all. The U.S. Government Accountability Office paints an equally dire picture. As of 2022, 32% of households with a worker age 55 and older had no savings for retirement or defined benefit plan.

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If you’re 65 and haven’t managed to save anything for your senior years, you’re far from alone. You may also be feeling hopeless, and that’s understandable.

That doesn’t mean you’re doomed to working forever, though. Here’s how to salvage your situation so you don’t have to hold down a job until the day you die.

Figure out what income sources you’ll have during retirement

Just because you don’t have savings going into retirement doesn’t mean you won’t have access to income. If you’ve worked all or most of your life, you’re likely eligible for Social Security.

The average retired worker today collects about $1,925 per month, amounting to roughly $23,000 per year. If that’s your sole income source, you’re eligible for those monthly checks free and clear of federal taxes, since you’re below the threshold at which Social Security gets taxed.

You can also delay your Social Security claim for a larger monthly benefit. If you’re 65 and were therefore born in 1959, your full retirement age for Social Security is 66 and 10 months. But you can accrue delayed retirement credits up until age 70 that boost your Social Security payments by 8% a year.

You may also be able to use your home as a source of income. The National Council on Aging says that U.S. homeowners aged 65 and over have a median home equity of $250,000. If you were to sell your home and replace it with a less expensive one, you may be able to walk away with a profit that can serve as your nest egg in the absence of separate savings.

Set a tight budget you can stick to

It’s not a given that you won’t be able to retire on Social Security alone. A recent Gallup poll found that 23% of retirees say their only major income source in retirement is Social Security, and 60% of this group say they have enough money to be comfortable.

But to pull that off, you may need to put yourself on a tight budget. And you might also have to come to terms with seeking out free entertainment if there’s not a lot of wiggle room in your finances for leisure.

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You may, however, be surprised at the number of resources you have available in that regard. Many libraries and community centers offer free programming for seniors. And you may find that you’re able to snag discounts on museums and public transportation, thereby giving you the ability to stretch a very limited leisure budget. Being an AARP member costs $20 a year starting in January 2025, and with it you can avail many benefits and services, including entertainment, travel and dining discounts.

Of course, another option is to continue working well beyond age 65 – but not full-time, and not at a job you hate. The gig economy could make it possible to earn money doing something you enjoy, whether it’s teaching an instrument you play well or moonlighting as a carer for pets.

You may find that between a few hours of gig work per week plus Social Security, you’re able to live comfortably, provided you’re careful in how you spend. So while retiring on zero savings isn’t optimal, there are ways to work around the situation so you’re not left plugging away at a full-time job for the rest of your life.

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Push yourself to work a few more years – and save during them

Since age 65 isn’t your full retirement age for Social Security, it could pay to work for a couple more years until you’re able to claim your monthly benefit in full. And an even better bet may be to work until age 70 so you’re able to postpone your filing for the largest possible monthly Social Security checks you can get based on your personal income history.

If you cut some spending while working a few more years, you may be able to bank a little bit of savings you can take with you into retirement. It won’t necessarily be a life-changing sum, but it could be enough to buy yourself a cushion for one-off expenses like home or car repairs.

Also, if you have a home you’re able to downsize out of while collecting a paycheck from work, you might find that you’re able to contribute quite nicely to an IRA or 401(k). Even with a very modest 4% yearly gain in what may, and should, be a conservative portfolio, a $500 monthly IRA or 401(k) contribution over the next five years leaves you with $32,500. And it may be feasible to contribute that $500 per month if you’ve lowered your housing costs.