May 6, 2025
As of March 2025, the average retired worker receiving Social Security collected a monthly benefit of $1,997 — not an easy sum of money to live off of.
But it could be worse.
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A 78-year-old mother with little retirement savings, whose sole source of income is a $600 monthly Social Security check, for example, would have a harder time making ends meet.
It's not so unusual to be very reliant on Social Security in retirement. The Social Security Administration said itself that among beneficiaries aged 65 and older, 12% of men and 15% of women get 90% of their retirement income or more from their monthly benefits.
More recent data from The Senior Citizens League found that for 27% of seniors, Social Security was their sole source of income in 2024.
But even with modest expenses, living on just $600 a month may not be feasible. In 2023, average yearly spending for Americans aged 65 to 74 totaled $65,149, according to the Federal Reserve. And a $600 monthly Social Security check results in just $7,200 in annual income.
This year, the poverty line is $15,650 for a household of one. An annual income of $7,200 isn’t even half of that sum.
So if you have someone in your life who’s a low-income senior, or you’re a cash-strapped retiree trying to better your own situation, it’s important to know what resources you have available.
Older Americans are struggling
The Kaiser Family Foundation reported that as of 2022, roughly 6 to 8 million Americans ages 65 and older were living in poverty. And sadly, the poverty rate was higher among Americans ages 80 and older, as well as women, people of color and people in relatively poor health.
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The National Council on Aging also reports that more than 17 million Americans ages 65 and over are economically insecure. That's roughly one in three people in that age range. It also found that older women are more likely to live in poverty than men as a result of both the wage gap and having to take time off out of the workforce for caregiving.
Compounding the problem is that Social Security, which commonly serves as a key income source for older Americans, has been losing buying power steadily over the past decade and a half.
The Senior Citizens League reported that as of 2024, the average Social Security check was only worth about 80% of what it was back in 2010, which means that during that 14-year span, recipients had lost 20% of their buying power.
Rising healthcare costs have also been a problem for seniors for a while. A late 2023 report from the Commonwealth Fund found that one-third of Medicare beneficiaries had difficulty affording healthcare costs.
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Financial strategies for low-income retirees
If you're retired without much money, or you have a family member who's retired and in a similar boat, you should know that there may be resources available to you. First, there's Supplemental Security Income (SSI), which provides monthly benefits to people with low incomes. There's also Medicaid.
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Because Medicaid income limits vary by state, you'll need to check with your state's agency specifically to see if you qualify. But you should know that it's possible to get health coverage through Medicare and Medicaid at the same time.
The Supplemental Nutrition Assistance Program (SNAP) is also available to low-income seniors. Because eligibility varies by state, it's best to contact your local SNAP office to learn more. You may also be eligible for food assistance through the Commodity Supplemental Food Program (CSFP).
You can seek out charitable resources in your city or community, too. Many communities have food pantries where low-income residents can access groceries on a regular basis. Your local house of worship might also have programs in place to help.
You should also know that as a low-income individual, you may be eligible for a drug assistance program. That could result in huge savings on your medications.
If you haven’t already, it’s also an option to move in with a member of your family. According to the National Association of REALTORS, 17% of home purchases were for multigenerational households in 2024 — the highest percentage since 2013. And the top reason cited for purchasing a multigeneration home was cost savings.
Living with family could also help cut down on other expenses, such as car payments and utilities. It’s an option worth exploring if living alone isn’t financially feasible. And as a plus, multigenerational living gives you access to built-in caregivers and companionship as you age.
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Maurie Backman has been writing professionally for well over a decade. Since becoming a full-time writer, she's produced thousands of articles on topics ranging from Social Security to investing to real estate.
