The National Council on Aging found in 2024 that more than 17 million seniors were classified as “economically insecure.” This number includes individuals age 65 and older with income at or below 200% of the federal poverty level, or just over $30,000 per year. According to Rocket Mortgage, a $30,000 annual budget equates to $2,500 per month, which is just slightly more than the country’s median monthly mortgage payment of $2,329. Limiting your budget to a number like this is a sure sign that you’re living as a lower-class retiree, but raw numbers don’t always tell the full story. Some retirees may be completely debt-free or have other financial assets, making Social Security more of a supplement to an already content lifestyle rather than a core pillar of their finances.
Other important signs of the lower-class retirement lifestyle also emerged in the form of restrictions. If the total amount of money you have doesn’t limit your lifestyle, other necessities or options can indicate that reality. For example, if you find that you must continue to work during retirement, this may be a sign that you do not have the financial ability to support expanded liquidity. The same goes for those who find themselves unable to afford a vacation. Other actions — such as relying on Social Security to fund your budget, adding additional aid packages, or downsizing a portion of your life — may also indicate that you may be in a tighter financial position than some of your retired peers.
Read more: 12 Things Retirees Will Instantly Regret Buying
Senior Americans take quite a few vacations each year. In its 2025 Travel Trends Report, AARP found that adults age 50 and older will take an average of 3.9 trips in 2024, about once every three months. Traveling less frequently than this may mean you have a lighter financial burden than your peers. Vacations are a common feature of retirement life, as this is often the most leisure-rich period of adult life. There may always be plans and commitments to address, but retirees often lose one of the biggest time drains of their waking lives when they leave their jobs.
If you’re struggling to maintain your finances so you can take a vacation or two a year, you’re likely to end up at the bottom of the financial ladder as a retiree. But that’s not to say that actually traveling on vacation is indicative of a certain financial status. Some people are perfectly happy to spend their free time in the home of their choice, or simply decide to take a big trip once a year. AARP also found that retirees spend an average of about $6,800 a year on vacations. Whether or not you hit this number, you may need to do some work financially if you clearly lack the ability to make this spending commitment.
Many older Americans are reducing their work commitments rather than giving up entirely. Using data from the U.S. Bureau of Labor Statistics, CNBC calculated that the number of U.S. workers age 65 and older increased by 33% between 2015 and 2024. Continuing to work beyond retirement age can make for a smoother transition into the workforce and help ease the strain on investment accounts. In particular, consulting work can be a high-paying retirement side job. However, if you find that you have to continue working, you see a completely different picture.
Some retirees may have the option to retire directly, but their current budget needs require them to withdraw from their retirement accounts at an unsustainable rate. If their savings run out prematurely, a person in this position may need to return to work to replace their source of income. A recent AARP survey found that 7% of retired Americans reentering the workforce, half cited money concerns as their primary motivation. Or maybe you’re part of the American public with little to no retirement savings and essentially no way to stop working. AARP also found that 20% of Americans over age 50 will have no retirement savings in 2024. Even if you have a high-paying job now, you may not be able to maintain that income as you age—especially if the job involves physical labor.
According to a 2024 survey by the Alliance for Seniors, 67% of seniors rely on Social Security benefits for more than half of their retirement income. The basic math of retirement budgeting suggests that you’ll need to provide at least half of your retirement income from other sources, since you’ll need about 80% of your pre-retirement income to maintain your lifestyle. Social Security replaced about 40 percent of that number, but the same Seniors Alliance survey found that a full 27 percent of seniors rely on Social Security for all of their retirement income. If you fall on the extreme end of this spectrum, you are almost certainly in a lower economic class.
Relying on Social Security to cover most or all of your daily needs leaves little room in your budget for splurges, emergencies, and other spending categories. The Social Security Administration (SSA) reports that the average Social Security check size as of January 2026 is $2,071, with the maximum benefit being $4,152 for those who do not delay retirement. Considering that the average person over age 60 spends over $1,300 per month on medical expenses alone (via Kiplinger), even this maximum doesn’t meet the quality financial mobility threshold for most people. Lower-class retirees may struggle to replace appliances or vehicles when needed, and many financial needs will be squeezed even more if you still have mortgage or other loan repayment obligations.
For retirees, downsizing can be a valuable tool. There are many reasons to sell your home, car, or other items that no longer meet your lifestyle needs. For example, some retirees consider moving to a new city or state that does not increase their tax liability on Social Security benefits. This provides immediate improvements that can help withdraw funds from your home while also limiting the rate at which your retirement savings are depleted. Some Americans may also own more than one car, or have recreational vehicles that they no longer use and don’t have enough to justify maintenance. However, other layoffs were also imposed on retirees. If you find that the alternative to selling your property may be to succumb to foreclosure proceedings and ultimately lose the property altogether, this may be emblematic of your financial class.
Lower-class retirees are particularly vulnerable to this need. Redfin reports that more than half of baby boomers who own homes don’t have a mortgage, and even those who are still paying off their home loan may consider their home to be their most valuable asset. However, selling a home can also be emotionally difficult, and the financial liquidity it provides can be limited. Facing the need to sell may mean you need funds to support other things that have been brought to your attention, resulting in less proceeds available for new purchases or as investment capital that can reinvigorate your portfolio.
Social Security is more than a single support tool for American retirees. The government agency also is responsible for disability and other benefits and serves as a point of contact for seniors enrolled in Medicare. Supplemental Security Income (SSI) is a tool provided by the SSA that can be an important lifeline for those who have little financial support beyond their welfare checks. SSI is an additional tool that can help people experiencing extreme financial vulnerability. Recipients must meet certain financial criteria that essentially exclude anyone outside the lower end of the economic spectrum. You also need to be over 65 or suffer from blindness or other difficulties due to a disability to qualify.
Through 2026, the SSA provides SSI benefits up to $994 per month for individual beneficiaries and $1,491 per month for couples. Maintaining certain financial assets (such as having more than $2,000 in the bank as a single recipient) can eliminate your eligibility for the program, while earning income through work can reduce your benefit amount by $1 for every $2 of wages earned. Other assistance programs can be found at the state level that largely leverage the same basic structure to provide additional financial support to those facing the most extreme financial vulnerabilities.
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