Mar 10, 2025
If you're still working at age 74, you've likely been on the job much longer than most people. But if you're also carrying a large amount of debt — let's say, $80,000 left on a mortgage — you may also feel like you're not in a position to call it quits until you're in a better position financially.
Imagine you also have a nest egg of $150,000 while collecting $1,700 per month in Social Security — combined with your mortgage debt, this may not be enough to support yourself without a job.
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On top of everything, while President Donald Trump promised not to cut Social Security benefits during his campaign, the recent political upheaval has you concerned things will get worse before they get better.
So, what should you do in these circumstances? Is it possible to still make things work?
Can you afford to retire with $150,000 in savings?
Ideally, when it comes time to retire, you'll have plenty of savings to go hand-in-hand with your Social Security. Unfortunately, not everyone lives in an ideal world.
If you want to make $150,000 last, you'll need to pick a safe withdrawal rate. Traditionally, experts have recommended withdrawing 4% of the balance in your retirement account(s) in the first year of retirement, and then withdrawing the same amount, adjusted for inflation, each year afterward. If you manage your money well, this plan is designed to make those savings last around 30 years. With a balance of $150,000, that means an initial withdrawal of $6,000.
Add that $6,000 with a $1,700 per month Social Security benefit, if you were to retire now you'd start with approximately $26,400 per year in income. Blend in mortgage payments, along with health and living expenses, and it seems unlikely you will be able to get by without extra income.
The fact that you still owe money on your home also means you may have more limited options for raising extra cash. Depending on how much your home is worth, you may not have much equity you can tap into. This means tools like a reverse mortgage or downsizing may not be effective options to help cover your shortfall.
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Worried about losing benefits?
Since you're not in a great financial situation, it's natural to be worried about what Trump's administration is going to do that could adversely affect your way of life.
If government benefits are diminished or eliminated, this could leave you with fewer options to try to survive financially if your savings and Social Security benefits don't go far enough and the day eventually comes when you're no longer able to work.
Given this uncertainty, along with the knowledge you'd likely struggle financially if you retired, your best bet, unfortunately, may be to stay on the job as long as possible and shore up your savings if you can. If you haven't been adhering to a strict budget, now may be the time to start so you can account for every penny.
Downsizing or even relocating to an area with a lower cost of living could also be an option depending on how much equity you have in your home (especially after it's been paid off), but it still presents a fair challenge in your situation.
It's probably not what you want to hear, but quitting work now would probably be a bad idea — even if there wasn't a looming threat of benefit cuts on the table. Hopefully, the job you're doing is stable and is one you enjoy enough to keep doing for a while so you can try to get yourself into a better place financially before you finally say goodbye to your career for good.
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Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
