Virginia Hambrick, 66, is retired but worried she'll have to return to work. Her savings are long gone, and her $1,625 monthly Social Security check isn't nearly enough to support her and her husband's expenses.
The couple lives in a rural area about 50 miles outside Tulsa, Oklahoma. Hambrick had a long career in the manufacturing and hospitality industries but retired in the early 2010s with limited savings. Her husband has been caring for sick relatives for the past several years and doesn't have an income. Additionally, he's 57, and his Social Security check won't kick in until he's at least 62.
Hambrick needs more money. Every day, it's difficult to scrape together enough food to eat, and her bills feel never-ending. But even if she were to find a job, she worries about maintaining it. She can't afford a car or gas to drive anywhere, and she doubts she could work in retail or food service because she struggles to stand for hours at a time.
"If somebody wants to work around my limitations, then they would have a totally dedicated employee," Hambrick previously told Business Insider.
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Hambrick's story echoes that of many American baby boomers. The country is facing a retirement crisis, and millions of older adults don't have the savings or assets to support themselves when they're no longer earning a paycheck.
In a Northwestern Mutual survey, US adults said they expected to need about $1.5 million to comfortably retire, and that number could be higher if you live in a high-cost-of-living city.
But there's a disconnect. An April report from the Retirement Income Institute, the retirement-focused research arm of the Alliance for Lifetime Income, found that 52% of boomers had $250,000 or less in retirement assets. And the Census Bureau's Current Population Survey found that more than half of Americans over 65 had an annual income of $30,000 or less. This pushes some older adults close to the federal poverty line.
Perhaps most vulnerable to this retirement crisis are "peak boomers," the last members of the generation who turn 65 this year. They're feeling the fallout of America's 1980s switch from government pensions to employee-funded 401(k)s and hope not to be financial burdens on their adult children. The group also faces uncertainty over Social Security — the average check in 2024 is $1,907, but the federal fund could start shrinking by 2030.
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With drained savings accounts, growing debt, and limited assets, some older adults such as Hambrick are clinging to their monthly Social Security checks. But for many, it isn't enough.
"I never imagined being in this position," Hambrick said.
With no savings, some older adults depend on Social Security
Mary Dacus, 69, thought she'd have a savings account at this point in her life. She and her husband, Stephen, felt comfortable for a few years after they stopped working several years ago. But she said that after their retirement funds depleted and inflation drove up their expenses, they now barely have enough money to live every day.
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Dacus and her husband live in Robinson, Illinois, on their combined monthly Social Security income of $2,140. They have no money in case of an emergency and are nearly $10,000 in debt because they feel forced to pay grocery, housing, and healthcare bills on their credit cards.
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Dacus often has to rely on food pantries to make sure she and her husband have enough to eat — they receive only $23 a month in SNAP benefits, and it "barely covers one meal," she said. Sometimes, she has to request an advance on their Social Security checks so they can pay for their meals or utilities.
And Dacus worries that Stephen's recent cancer diagnosis could be financially "catastrophic" because they don't have Medicaid and Medicare won't cover long-term treatment.
Looming Social Security cuts in the next decade are a source of constant anxiety for Dacus.
"It scares us to death because we'll still be here, God-willing," she previously told BI. "How are we to survive?"
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To be sure, some older adults feel financially secure in retirement. Because of strong company 401(k) matches or savvy investments, some have savings and assets and aren't dependent on Social Security — and some are even able to retire early.
It can be difficult for boomers to qualify for assistance, even with a low income
Angela Babin feels stuck. The 62-year-old lives alone in a mobile home in Houma, Louisiana, about 60 miles southwest of New Orleans. She receives $1,104 a month in Social Security.
Babin lost most of her would-be retirement savings and assets in a divorce about 16 years ago and stopped working earlier than she planned because of health complications. She now lives paycheck to paycheck — and $1,000 a month isn't enough to cover her food, car, or utility bills. Her home was also badly damaged three years ago by Hurricane Ida, and she can't afford the necessary repairs, which she said state emergency funds won't fully cover.
"I don't want to be rich, I just need to be comfortable," she previously told BI. "I just want to know that I can have food when I need it and a nice roof over my head."
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Babin said it's especially difficult for older adults to qualify for government assistance even if their Social Security income doesn't cover basic necessities. She's often worried about having enough to eat: The $28 a month she receives from SNAP covers bread, milk, and coffee but little else. She said that when she could visit a food pantry, the food was often spoiled.
Even without savings, Babin doesn't qualify for many of America's safety nets. Programs that could supplement her income, such as Temporary Assistance for Needy Families, and some tax credits are set up for parents with dependent children.
As an older adult, she doesn't know who to ask for help. She said she "has to survive" but was losing hope that her situation would change.
Some older adults didn't expect to struggle in retirement
Boomers are staring down an uncertain future. Hambrick, Dacus, and Babin all told BI they didn't feel as if they were overspending. But limited government assistance, insufficient funds from Social Security, and no savings to fall back on aren't enough to pay bills.
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Hambrick said she thought she'd be "traveling to new places and having fun" with her husband in retirement, not that she'd have to start submitting job applications.
"A lot of people think that, with Social Security, you get this big check, and you can move to Florida, and you could buy a boat and go fishing," Dacus said. "That's not what it is."
Are you an older adult living on Social Security? Are you open to sharing how you're saving for retirement? If so, reach out to this reporter at allisonkelly@businessinsider.com.
