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Social Security benefits were meant to bolster existing retirement savings and pensions — not to make up for a non-existent nest egg.

Yet, according to the U.S. Census Bureau’s Survey of Income and Program Participation (1) (SIPP), 49% of adults between the ages of 55 and 66 had no personal retirement savings.

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That means living on social security alone, which is only $2,071 on average — that’s just $24,852 a year (2). As always, one way to avoid this trap is to start saving regularly as early as possible so you don’t have to rely on the government as much for your retirement.

But if you’re pinched for pennies, here are three ways you can make your retirement dollars go further.

Whether you rent or own property, one way to help free up some money in your retirement years is to downsize your home. According to the U.S. Census Bureau’s 2024 American Community Survey (3), almost 40% of homeowners were mortgage-free in 2024, making it theoretically easier to make a lateral move and pocket the difference.

For those in this bracket, having a paid-off home and an income of about $25,000 per year probably still isn’t enough to live on comfortably. According to the Bureau of Labor Statistics (4), the expenses for those over 65 were $61,432 per year on average — with $12,500 of that for owner dwellings coming from other shelter costs such as property taxes and home maintenance. Although this is a rough breakdown, this still comes out to a shortfall of $24,080 when accounting for Social Security benefits.

As a result, if you’re in a similar situation, you may need to start taking a long, careful look at your housing costs.

If you no longer need the same square footage you once did when you were working or had more dependents, you can even consider looking outside your home city or state for areas where property taxes are lower and insurance costs aren’t as high. The only caveat here is a social one. As you age, keeping in touch with peers is important, not to mention staying close to family.

If you decide to age in place with a fully paid off home, there are options available to give you a little more income.

One option is to tap into a Home Equity Line of Credit (HELOC). A HELOC functions a lot like a credit card, but uses your home as collateral. They tend to work best for pre-retirement home renovations to improve your quality of life in retirement — think accessible shower rails or a therapy tub to soothe aching joints. However, they can also be used to help make up for lost income due to a down period in the market or to support your monthly bills.

Platforms like Figure allow homeowners to explore home equity loans that can provide access to cash without replacing an existing mortgage.

Unlike traditional HELOCs that let you borrow gradually, Figure gives you the full approved amount upfront, so it works more like a quick home-equity loan with HELOC-style flexibility. It’s best for people who know they need a larger lump sum for things like renovations or consolidating high-interest debt.

You can check your rate in minutes, complete the entire application digitally, and get funding in as little as five days. Just make sure you understand the repayment plan before committing, and consider talking to a financial advisor to make sure it makes sense for you.

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While the growing price of real estate can be a good thing if you already own real estate, it’s made things increasingly hard for those looking to buy homes as an investment or to retire in. If you’ve still got time before retirement, or need extra passive income, you could instead consider fractional investing.

You can tap into this market by investing in shares of vacation homes or rental properties through Arrived.

Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.

To get started, simply browse through their selection of vetted properties, each picked for its potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.

Cut costs, boost savings

Another way to get more out of your Social Security check is by prioritizing value.

For instance, your home is likely the biggest financial investment you have made. While it’s essential to keep that asset protected, it’s also important to make sure you’re not overpaying for monthly necessities like insurance. After all, those line items can really add up if left to stew year after year — and they stick around even after your mortgage is paid off.

Normally, shopping around for insurance quotes takes forever, and it's a hassle to field multiple phone calls from different insurance agents. However, it can also be a great way to save some extra money each year (5).

By using a comparison platform like Insurify, you can instantly view quotes from top-rated providers to ensure you aren't paying a hidden ‘loyalty tax’ to your current insurer.

Just answer a few basic questions, and Insurify will show you the most affordable deals in as little as 3 minutes — and the process is 100% free.

Of course, if you have a vehicle parked in the driveway, there’s also auto insurance to consider.

As personal finance celebrity Dave Ramsey has noted on his show, owning a car can keep people living paycheck to paycheck.

Insurify can also help out here. And, even better, you could save up to 15% by bundling your car and home insurance.

Another option is to abandon your car altogether. After all, many public transportation options provide senior discounts. Trading in your car for a cheaper model can also help reduce costs in retirement if you’re averse to buses and trains.

One upside of Social Security is that you can still work and earn benefits. Mind you, your Social Security deposits can be reduced if you earn above certain limits while receiving them. Making sense of this can be a challenge, however — such as understanding your Required Minimum Distributions (6) at 73, the impacts of early retirement and the benefits of delaying your stop-work date.

To maximize the longevity of your Social Security benefits, your nest egg or any other income you plan on earning to supplement that fund, many people would tell you to consult with a financial advisor.

Finding the right advisor is simple with Advisor.com. Their platform connects you with licensed financial professionals in your area who can provide personalized guidance.

A professional advisor can also help you determine how many years you have left to invest before retirement and assess your comfort level with market fluctuations — two key factors in building the right asset mix for your portfolio.

Through Advisor.com, you can schedule a free, no-obligation consultation to discuss your retirement goals and long-term financial plan.

No matter what you choose, the main goal is to avoid having to rely on just one source of income in retirement. Ideally, you want to have social security, your retirement accounts and something generating passive income.

Returning to work is also on the table, but it should be done only on your terms if at all possible. There’s a huge psychological difference between being forced to work and choosing to during your golden years.

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United States Census Bureau (1), (3); Social Security Administration (2); Bureau of Labor Statistics (4); Jerry (5); Internal Revenue Service (6)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.