At 79, my wife and I get $2K/month in Social Security, have $50K savings. We’re scared of running out of cash

Jessica Wong

Tue, Jun 17, 2025, 6:34 AM 4 min read

The average annual spending for U.S. households of those 75 years and older was $53,481 in 2022, according to the Bureau of Labor Statistics. With a modest $2,000 monthly income from Social Security and $50,000 in savings, it’s natural to be worried about outliving your savings and looking for some guidance.

• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how

• I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast)

• Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10)

The average life expectancy for 79-year-olds is around nine years, according to Social Security. Using a Fidelity retirement calculator, we can see that if your savings are invested and earn an average annual rate of return of 5%, you can afford to make nine yearly withdrawals of around $6,700.

According to the Social Security Administration (SSA), the estimated average monthly retirement benefit for January 2025 was $1,976. This would translate to almost $4,000 for a couple. But many seniors receive less, which makes budgeting and planning critical.

Let’s walk through steps you can take to navigate this financial situation.

While owning a home outright is a huge advantage, maintaining it can be costly.

You can consider downsizing. Moving to a smaller, lower-maintenance home or a senior-friendly community can reduce property taxes, utilities, and upkeep. Downsizing can free up capital and reduce monthly costs significantly.

Renting out a spare room or partnering with another senior through vetted home-sharing programs can also help with supplementing income and provide companionship and added security. Programs like the National Shared Housing Resource Center offer resources for income-generating home-sharing options.

Medicare provides essential coverage, but supplemental insurance can be pricy.

Seniors with limited income should check eligibility for Medicare Savings Programs (MSPs). These state-administered programs help pay Medicare premiums, deductibles, and co-pays for low-income seniors. Also, learn about the “Extra Help” program for prescription drugs. The SSA offers assistance to reduce Part D prescription costs based on income and resources.

Staying on top of these programs through resources like Medicare.gov can save hundreds or even thousands of dollars every year.