- ⚠️ Over 37% of retirees in the U.S. have no retirement savings. This shows a system-wide problem.
- 🧓 Gen X and low-income retirees are among the most vulnerable groups who have a hard time affording retirement.
- 💸 A typical couple needs about $315,000 just for healthcare expenses in retirement—not counting other living costs.
- 🏠 Retirees hold over $12 trillion in home equity, a big source of retirement money that many don’t use.
- 📉 Inflation has cut the buying power of retirement savings by over 17% since 2020, and this makes things harder for people on fixed incomes.
A Nation Unprepared for Retirement
Over 37% of U.S. retirees have no retirement savings. This shows a big problem. It’s not just about money. It’s also about how people live, where they live, and their health long-term. Life expectancy is rising and traditional pensions are gone. So, many Americans must rely only on their own savings and Social Security. Often, this is not enough. This savings problem shows bigger money issues. It makes clear that retirement planning is more than just putting money in a 401(k). It means making smart choices with all your money, and this includes how you use your home.
Who’s Most at Risk?
Here’s who faces the biggest challenges saving for retirement:
| Group | % With $0 in Savings |
|---|---|
| Low-Income Retirees | 64% |
| Gen X (Ages 44–59) | 53% |
| Women (all income levels) | Disproportionately affected |
Low-Income Retirees
Low-income Americans have the hardest time. Over 6 in 10 retirees with little money have no retirement savings. This leaves them very open to sudden money problems. These people use most of their money for basic needs like rent, food, and medical care. So, they have little or nothing left for long-term planning.
Gen X: The “Forgotten” Generation
People in Gen X, ages 44 to 59, are in a tough financial spot. They have old student loan debt, wages haven’t grown much, and they often care for both older parents and young adult children. Because of this, they have found it hard to put retirement planning first. Many started working when old-style pensions were going away and 401(k)s were new. This left them without the retirement base that earlier generations had.
Women: The Gender Wealth Gap
Even with progress at work, women are still behind when it comes to being ready for retirement. Unequal pay, breaks from work for caring for others, and living longer all add to a wealth gap for women. Also, many women do not get retirement plans from their jobs. This happens because they work part-time or do freelance work.
What’s Driving the Retirement Savings Crisis?
Let’s look at what causes this savings problem:
The Shift from Pensions to Individual Savings
Years ago, many Americans had pensions from their jobs that paid them for life. Most of those plans are now gone from private companies. Instead, we have plans like 401(k)s and IRAs. These plans offer choices, but they also put all the saving work and risk on the person. Millions do not know enough about money, have the right tools, or have extra money to handle this well.
Impact of Inflation and the Rising Cost of Living
Basic costs like rent, food, and healthcare have gone up a lot in the last few years. Inflation has risen almost 19% since 2020 (Bureau of Labor Statistics, 2024). But wages have stayed about the same. This loss of buying power has chipped away at the value of money saved years ago.
Wage Stagnation and Economic Inequality
The average household income in the U.S. has not grown, especially for middle- and low-income workers. When wages don’t grow, it’s almost impossible to save more for retirement. Also, many jobs are not secure, and the gig economy often has few benefits. This means consistent saving is very hard.
Unpredictable Healthcare and Long-Term Care Costs
Healthcare costs can ruin retirement plans. This is especially true for health costs that come with getting older and are hard to predict. Long-term sickness, trouble moving, and memory loss all need care. This care is either very expensive or Medicare doesn’t cover it well. So, planning for these costs is now a must for retirement planning.
Inflation: Eating Away at Nest Eggs
Inflation does more than raise costs. It changes how much money you actually have in retirement.
From 2020 to 2025, inflation has climbed by nearly 19% (Bureau of Labor Statistics, 2025). This means things like groceries, gas, and utilities are now much harder to pay for, especially if you have a fixed income. Retirees who felt secure, even good, now find their money spread thin.
A real example: $500,000 saved in 2019 now buys only what $415,000 did then. This is a big loss in value for someone who relies a lot on savings.
Annuities and fixed-income investments buy less when inflation is high. So, retirees must look at their investment plans again to keep their buying power.
How to Combat Inflation in Retirement
- Put your money into different things that can grow, like real estate and stocks.
- Wait to take Social Security to get more money each month.
- Look at your retirement budget each year and spend less on non-essentials.
- Think about moving to a place where it costs less to live.
Healthcare and Long-Term Care: The Hidden Danger
Healthcare is one of the most overlooked costs in retirement. Medicare helps with many key services. But it does not cover everything, and long-term care is a very clear gap.
The Real Cost of Medical Care
New estimates say a retired couple, age 65 in 2023, will need about $315,000 for healthcare costs during retirement (Fidelity Investments, 2023). This amount includes payments, deductibles, out-of-pocket costs, and other related charges.
Surging Long-Term Care Costs
- Assisted living homes cost about $4,000–$7,000 each month.
- Full-time home care ranges from $20,000 to $100,000+ each year.
- Memory care for Alzheimer’s or dementia costs 20%–30% more.
There is long-term care insurance, but it costs too much for many people. Retirees with little savings often do not have enough coverage. They must rely on limited Medicaid options, and this may mean they have to spend their other money first.
Home Equity: A Retirement Lifeline Hiding in Plain Sight
Home equity is one of the biggest assets that people don’t use enough in retirement planning. It’s more than just a house. It’s one of the largest piles of money for Americans over 60.
📊 Homeowners age 62+ are sitting on over $12 trillion in housing wealth (National Reverse Mortgage Lenders Association, 2024).
How to Use It Wisely
Instead of putting a burden on your children or relying only on shrinking pensions, you can turn your property into a strong tool to make money or cut costs:
- Downsize: Cut down on upkeep, property taxes, and utilities. This also frees up cash.
- Sell smartly: Move when the market favors sellers to get the most money.
- Use a discount listing agent: Save thousands in fees and keep more of the sale money.
- Rent part of your home: Make extra money from unused spaces like basements or guest houses.
Think Net Worth, Not Just Savings
Retirement planning is not just one number. It’s a bigger picture of your total net worth and how easily you can use your money.
Comprehensive Retirement Asset Checklist
A real look at retirement strength includes:
- ✔️ 401(k), Roth IRA, and traditional IRA savings
- ✔️ Taxable investments in stocks, mutual funds, or ETFs
- ✔️ Real estate, and this includes equity in your main home.
- ✔️ Emergency savings and cash that keeps its value against inflation.
- ✔️ Debts, and this includes your mortgage or personal loans.
Having many assets but little cash is a bad spot for retirees. So, it’s very important to find ways to turn assets, especially home equity, into money you can spend without extra costs.
Real Estate Strategies for Retirees
Housing is more than just a place to live. It is a useful tool for keeping and growing retirement money. Here are real ways to use your home as part of your retirement plan:
1. Downsize In Place
Sell your big home that costs a lot to keep up. Then, buy a smaller, more efficient one nearby. This move cuts costs and frees up home equity. You also keep your community and healthcare network.
2. Relocate to a Low-Tax State
States like Florida, Texas, and Tennessee have no state income taxes. This makes them good for retirees who want their money to go further. Also, consider property taxes and how easy it is to get healthcare.
3. Try Multi-Generational Living
Living with adult children or family lets you share costs like food, utilities, and care. And it makes family ties stronger. It can also make you feel better mentally by having daily talks.
4. Rent Out Part of Your Home
Build an attached accessory dwelling unit (ADU) or rent out a bedroom on sites like Airbnb or VRBO. The extra money quickly adds up. It can be like your own “retirement paycheck.”
How Our 1% Commission Saves You Big
The usual 5-6% real estate commission takes tens of thousands from your home’s value. For retirees with a set amount of money, this can mean the difference between feeling secure and feeling stressed.
Compare the Costs:
| Sale Price | Traditional Agent (6%) | Our Model (1–3%) | Potential Savings |
|---|---|---|---|
| $400,000 | $24,000 | $4,000–7,000 | Up to $20,000 |
With these savings, you could:
- Pay for a full year of extra insurance or medicine.
- Eliminate remaining credit card debt.
- Pay for a grandchild’s first year of college.
Buying a New Retirement Home? Don’t Miss the Rebate
Buyer rebates, where allowed by law, give you back some of the agent’s commission when you close on the home. These rebates can be thousands of dollars. You can use them directly for key retirement costs.
Rebates Can Help Cover:
- Closing costs and taxes
- New furniture or home updates.
- Unexpected medical bills or insurance premiums
Get an estimate of your rebate with our free Buyer Rebate Estimator. Then, add this to your long-term planning.
Housing Timeline: When to Start Transition Planning
Do not leave your housing future in retirement to chance. Use this age-based guide to make smart choices at the right time.
In Your 50s
- Get a home appraisal and check market trends in your area.
- Look into places or home types that cost less to live in or have better healthcare.
- Start talking about where you want to live long-term with your spouse or adult children.
Ages 60–65
- Start the selling or downsizing process while you are still healthy.
- Use the money from the sale to pay down debt or build a safe investment plan.
- Look into long-term care insurance or plan for Medicaid eligibility ahead of time.
Ages 66–70+
- Make your last housing move to stay steady in later years.
- Think about senior living places that offer full care as you get older.
- Plan how to pass on your estate. Also, talk about care instructions with family.
Retiring with No Savings? Here’s What You Can Do
Even if you retire with no savings, you still have choices. Smart steps can still give you the steady support you need.
✔️ Delay Social Security Benefits
Waiting until age 70 raises your monthly payment by up to 32%.
✔️ Use Home Equity Smartly
Downsize, get a reverse mortgage, or rent out rooms. This turns your home into income.
✔️ Use Government Programs
Get help from state and federal aid. This includes SNAP, housing help, and Medicaid.
✔️ Get Part-Time Work Smartly
Pick jobs that use your skills but don’t require much physical effort. Consulting, tutoring, or remote work are good choices.
✔️ Seek Free Financial Counseling
Groups like the National Council on Aging offer help made for seniors who are retiring with no savings.
The Retirement Future Requires Smarter Financial Moves
The retirement savings problem is changing money matters for millions of Americans. But with smarter, personal plans, built on knowing and doing, you can change your retirement story. No matter if you are years from retirement or just starting it, your home may be your most powerful tool. Use it smartly, with low-commission selling and buyer rebates. This helps close the gap between what you have and what you need.
Ready to make your money work harder?
Talk to an expert now — Your free, no-pressure chat is just one click away.
Citations
- Bureau of Labor Statistics. (2024). Consumer Price Index Summary. Retrieved from https://www.bls.gov/cpi/
- Fidelity Investments. (2023). Retiree Health Care Cost Estimate. Retrieved from https://www.fidelity.com/viewpoints/retirement/retiree-health-care-costs
- National Reverse Mortgage Lenders Association. (2024). Home Equity Trends Among Older Adults.
