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Losing your job at age 60 is difficult enough. Losing it when you’ve saved practically nothing for retirement can turn the next few years into a financial scramble.
Consider George, a single man from Little Rock, Ark., who found himself in that position after losing his job in a company restructuring. At 60, he was still two years away from being eligible to claim Social Security and five years away from Medicare eligibility — with little retirement savings to fall back on.
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George’s situation may be extreme, but he’s far from alone. According to a 2024 AARP survey, 1 in 5 Americans aged 50 and older have no retirement savings, while 61% worry they won’t have enough money to support themselves later in life (1).
Social Security alone may not provide much breathing room, either. The Social Security Administration estimates the average retired worker received about $2,086 per month in July 2026 (2). And that’s an average: Someone who begins collecting benefits as soon as they become eligible at 62 can receive substantially less than they would by waiting until full retirement age or beyond.
For someone like George, then, the challenge isn’t simply figuring out how to retire with less. It’s finding a way to financially bridge the next several years without making decisions today that could leave him with even less income later.
That means looking at every part of the budget: replacing lost income where possible, keeping healthcare covered until Medicare begins, making limited savings work harder, cutting unnecessary expenses and taking advantage of benefits available to older Americans.
There’s no quick fix for reaching 60 without a substantial nest egg. But there are still moves that can give someone in George’s position more options, starting with one expense that can become especially urgent after a layoff: health insurance.
Plan for health coverage before Medicare
If you lose employer-sponsored health insurance at 60, you’ll probably need to account for how you’ll stay covered until you become eligible for Medicare. And once Medicare eligibility approaches, you’ll have another set of coverage decisions to make.
A Medicare Supplement Insurance, or Medigap, plan can help cover some of the out-of-pocket costs left by Original Medicare.
When the time comes to explore those options, HealthCare.com makes it easier to shop for coverage by connecting you with Medicare plan options available in your area. More than 5 million customers have used HealthCare.com to help find health insurance coverage.
Simply enter your ZIP code to explore available options. If you need help comparing coverage and prices, you can speak with a licensed insurance agent who can answer your questions and help you find a plan that fits your needs and budget.
Once you’ve chosen your coverage, HealthCare.com lets you enroll the way you want — online or over the phone, so you can complete the process however you prefer.
Don’t rush to claim Social Security
When you’re 60 with little saved, retirement targets in the seven figures can make the situation seem hopeless.
And seven figures isn’t out of the realm of possibility. In fact, Northwestern Mutual’s 2026 Planning & Progress Study found that Americans believe they need about $1.46 million to retire comfortably (3).
But a retirement target isn’t a one-size-fits-all solution. How much you actually need depends on your expenses, other sources of income and how long your money needs to last.
For someone in George’s position, one of the most consequential decisions may be when to start Social Security.
Benefits can begin at 62, but claiming early permanently reduces your monthly payment. If you can keep working or find another way to cover expenses, delaying Social Security until full retirement age — or even age 70 — can result in a larger guaranteed monthly benefit for the rest of your life.
For people born in 1960 or later, full retirement age is 67. Waiting beyond that earns delayed retirement credits of 8% per year until age 70, when the benefit reaches about 124% of the amount available at full retirement age (4).
Of course, waiting only works if you can afford the years in between. That makes protecting whatever cash you have especially important.
Make your emergency savings work harder
A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.
A Wealthfront Cash Account currently offers a base APY of 3.55% through program banks, and new, referred clients can get an extra 1.00% boost with the direct deposit incentive for a total variable APY of 4.55%.
That’s over 10 times the national deposit savings rate, according to the FDIC’s August report.
Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.
Keep earning if you’re able to work
For someone who loses a job at 60, finding another source of income can do more than cover the bills. It could also make it easier to delay Social Security and give you more time to add to your retirement savings.
American Job Centers can connect job seekers with openings, training opportunities and local employment assistance (5). Part-time, contract or freelance work could provide additional income, although self-employed workers need to account for income and self-employment taxes.
If your new job doesn’t offer a retirement plan, you can still contribute to an IRA as long as you have eligible compensation. In 2026, the IRA contribution limit is $7,500, plus a $1,100 catch-up contribution for those age 50 and older, for a total of up to $8,600 (6).
Workers who land a job offering a 401(k) may have an opportunity to save even more. The standard employee contribution limit is $24,500 in 2026. And workers aged 60 through 63 can potentially make an additional catch-up contribution of up to $11,250 if their plan allows it (7).
Self-employment also opens up other retirement-saving options. A simplified employee pension IRA (SEP-IRA), for instance, allows eligible contributions of up to 25% of compensation, subject to a $72,000 maximum in 2026 (8). A one-participant, or solo, 401(k) allows a self-employed business owner with no employees, other than a spouse, to contribute as both an employee and employer.
Of course, someone starting from nearly zero at 60 may not be able to max out these accounts. But even smaller contributions can help rebuild savings at the same time that continued income reduces the pressure to start drawing Social Security immediately.
Lower your monthly expenses
If you’re trying to stretch limited savings while delaying Social Security, reducing what you spend each month can buy you more time. That starts with identifying expenses you can cut or eliminate.
A quick daily check-in of your accounts can show you exactly where your money is going.
An app like Rocket Money can easily flag recurring subscriptions, upcoming bills and unusual charges by pulling in transactions from all your linked accounts.
This can help you cut unnecessary costs and then you can manually redirect savings straight into your retirement fund. No spreadsheets, no guesswork, no stress. Small habits like this can make a big difference over time.
Rocket Money’s intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders and budgeting basics, while premium features — like automated savings, net worth tracking, customizable dashboards and more — make it easier to stay on top of your retirement contributions and overall financial goals.
Take a closer look at your housing costs
Housing is likely to be one of your biggest expenses in retirement, which makes it another place to look for ways to improve your cash flow.
If your current space is more than you need, downsizing could reduce your monthly costs. Renters might consider moving to a smaller home or sharing a rental, while homeowners could consider renting out a room for additional income.
Homeowners may also have another resource available: the equity they’ve built in their property. If you need access to cash, a home equity line of credit (HELOC) is one option to consider — though borrowing against your home comes with interest, fees and the risk of losing your home if you can’t repay the debt.
A HELOC is a revolving line of credit that leverages the equity in your home as collateral, so that you can borrow and repay funds as needed — similar to a credit card.
For instance, AmeriSave offers a flexible HELOC that lets homeowners borrow against their equity as needed during a draw period, making it useful for renovations or debt consolidation. The application is mostly online and available in most states.
It’s a good fit for borrowers who want convenience and flexibility rather than a large lump-sum loan up-front. You can draw funds only when you need them, so it’s useful for ongoing or unpredictable costs. Interest is charged just on what you use and you repay the balance over time. It’s essentially a flexible credit line secured by your home, delivered through a mostly online application process.
Check which assistance programs you qualify for
Before taking on new debt, it’s also worth checking whether you qualify for programs that could lower some of your essential expenses.
You could qualify for a housing voucher through your local public housing agency. Voucher formulas aim for tenants to pay roughly 30% of adjusted income toward rent and utilities (9).
Meanwhile, if your income meets requirements, the Senior Community Service Employment Program offers paid part-time community placements with skills training that can lead to long-term jobs (10).
If you want to keep yourself updated on programs available to older Americans, you might want to consider joining senior-focused organizations like AARP. As one of the most trusted organizations for older Americans, AARP not only offers money-saving perks, but they can also help you make informed financial and health decisions.
AARP members get access to guides that can help you make the most of Social Security, choose the right Medicare plan and uncover other government benefits and programs — potentially saving you thousands.
Sign up with AARP today and get 25% off your first year.
Bottom line
Reaching 60 with little or nothing saved for retirement can severely limit your options, but it doesn’t mean you have none. Continuing to earn income, delaying Social Security when possible, lowering your expenses and taking advantage of the resources available to you can all help make the years ahead more manageable.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see oureditorial ethics and guidelines.
AARP (1); Social Security Administration (2), (4); Northwestern Mutual (3); U.S. Department of Labor (5), (10); IRS (6), (7), (8); U.S. Department of Housing and Urban Development (9)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
