I’m 65, tired of working and have very little savings — is it possible to live off Social Security alone? Yes, but you'll need to make these 3 big sacrifices

Delay your Social Security claim for a larger monthly benefit

You can sign up for Social Security once you reach age 62, but waiting until full retirement age (FRA) will mean your monthly benefit won’t get reduced. Instead, at that point, you’ll get your complete monthly benefit based on your individual earnings history. FRA is age 67 for anyone born in 1960 or later.

You’ll also get credits for delaying your Social Security claim beyond FRA. For each year you do, up until age 70, your monthly benefit rises 8%.

A 2024 survey by Schroders found that only 10% of Americans plan to wait until age 70 to claim Social Security. If you’re willing to work a bit longer, you may be able to live on Social Security alone when you eventually sign up thanks to the additional income.

If you can’t wait until 70, try to hold off until FRA arrives. For example, if you were born in 1959, your FRA is 66 and 10 months. Claiming Social Security before then will significantly reduce your monthly benefit.

Retire richer: The secret to building wealth faster

Most people miss out on key opportunities to grow their wealth. Partnering with the right financial advisor can help you secure a brighter future. Learn how to make your money work harder for you today.

Discover the secret

Scale back your living costs and stick to a tight budget

The problem with budgeting is that it can feel restrictive, but 85% of people across all age groups follow a budget, according to American Century Investments.

If your retirement plan is to live on Social Security alone, you must be prepared to budget carefully and limit your spending on non-essential items. That could mean doing most or all of your cooking at home instead of dining out, and limiting yourself to free hobbies such as hiking or community events.

That said, staying busy without spending money by spending time with like-minded people is possible. With the right company, you can enjoy hiking, gardening or discussing your latest library finds over coffee rather than doing activities that force you to open your wallet.

Reduce your housing costs by downsizing

Housing costs account for about 25% of expenses among Americans aged 65 and older, says the National Council on Aging (NCOA). And in 2021, 11.2 million older Americans were spending more than 30% of their income on housing.

If you’re forced to rely solely on Social Security during retirement, you may need to take steps to reduce your housing costs, and downsizing could be a great solution.

Downsizing could do more than just save you money on rent or mortgage payments. If you’re a homeowner, downsizing could mean cheaper property taxes and lower maintenance expenses. It also typically costs less to heat and cool a smaller home than a larger one, so there could be some significant savings there, too.

That said, if you own a home and opt to downsize, you may not have to live on Social Security alone in retirement. The NCOA says homeowners aged 65 and over have a median of $250,000 in home equity. If you can downsize and access some of that equity, you’ll have extra money for expenses.