3 Things You Must Do Every Month If You Are Retired and Broke

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Normally, when we think of retirement we’re assuming that your plans have gone relatively smoothly, but that isn’t always the case. Some people enter retirement and find they’ve run out of money. Whether you chose not to save or were unable to do so, there are steps you must take every month to avoid suffering long-term if you find yourself retired and broke.

1. Stay on Top of Social Security Benefits

Retiring with no money means that you’re reliant on your Social Security benefits for income, according to Investopedia. While the average monthly retirement benefit was $1,845 in November 2023, the amount you receive differs based on certain qualifiers, like your employment and earnings history and your age at retirement. Moreover, while you can begin claiming at 62, you receive less than if you claim at 70 or later. If this is your primary source of income, you must be sure that you have received your full benefit on time each month.

2. Stick to Budget

While having a budget is generally helpful to anyone, it’s especially important if you have little or no savings. Investopedia recommends noting every expense you have, then starting by cutting out the smallest ones, which tend to be unnecessary, like any monthly subscription services. When it comes to the larger expenses like housing, health care and insurance, you will have to consider more complicated changes. You might have to relocate to a smaller, less expensive home in an area with a lower cost of living.

Selling your home will provide you with a temporary amount to help recover. Downsizing and Social Security benefits are common ways with which people with less income are able to afford to retire. Of course, already having an established budget is one way you would avoid going broke in the first place, per The Motley Fool. For a budget to be effective, you need to have factored in all of your expenses – AARP recommends not forgetting something like all of your health care costs. It’s imperative that you stick to your budget each month.

3. Pay Attention to Available Government Benefits

If you’re broke, government programs like Medicaid or the Supplemental Nutrition Assistance Program (SNAP) can provide you with additional income and have looser eligibility requirements than other programs. You can also contact your local Department of Social Services for advice on what programs you might qualify for. Set a date each month or quarter to catch up on the latest benefits you are eligible for.

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