Rebecca Reed, 87, enjoys socializing with friends and, as she puts it, “eating candy and watching TV.” Unfortunately, she didn’t have enough money – and she wasn’t sure she could afford it.
According to a recent interview with Business Insider, Reed must continue to work as a church secretary and editorial assistant to make ends meet. Although she planned to retire when she was 90, she had her doubts.
Looking back, Reed can see how she got into this situation: She let her late husband take care of their shared finances, and she had no idea what was going on.
The two had separate checking accounts, and after his death in 2011, she discovered he had essentially no savings. She also did not benefit from his insurance due to complications with her husband’s ex-wife and their children.
On top of that, she was surprised to find out they still had a mortgage on their house – with monthly payments of $1,000.
Reed was forced to file for bankruptcy and rely on the support of his family to survive.
While this helped for a while, life continued to throw her way into trouble, including two car accidents, one of which resulted in a broken shoulder, and a termite infestation that required her roof to be replaced (1).
She wasn’t able to save enough money in her early years because her daughter and her daughter’s husband both died in the early 2000s, when they were both in their 40s. They left Reed and her husband – who would have been nearing retirement – to raise their 11- and 13-year-old grandchildren. Both are now adults (2).
Today, Reed is on stronger financial footing. She paid off her mortgage and earned income from two jobs. She receives $3,000 a month from Social Security. However, she still couldn’t retire.
She also can’t afford the $6,000 a year in New Orleans homeowners insurance. She chose to take the risk without insurance, which meant a hurricane could destroy almost everything she had worked for (1).
Reed said being the only one of her siblings and friends still working can be a challenge. They have to plan activities around her work schedule.
Sometimes she considers quitting both jobs and tightening her budget to get by, but another thought gets in the way.
“In order to do the things I want to do, I need more income,” she said (2).
Reed isn’t the only senior citizen in America who has had to put their retirement plans on hold.
In fact, U.S. Census data show that the share of workers over the age of 55 jumped from 10% in 1994 to 24% in 2022, the largest increase of any population (3).
Numerous surveys show that Americans are increasingly less confident about retiring in their 60s. For example, a 2025 report from the Lifetime Income Alliance and Ipsos Group found that 30% of non-retirees ages 61 to 65 are considering delaying retirement due to current economic and political uncertainty (4). Data from financial planning firm TIAA also found that nearly two-thirds of Americans say retirement between the ages of 65 and 70 is unrealistic (5).
Heading into 2026, insurance company Allianz Life found that 27% of Americans are less confident about reaching their retirement goals than last year. Gen
Read more: The average American net worth is a surprising $620,654. But that makes almost no sense. Here are the numbers that matter (and how to make them soar)
While there’s no denying that macroeconomic pressures are hampering retirement dreams, some Americans may have an unrealistic idea of what they need in retirement.
A Northwestern Mutual survey shows that most Americans believe they need at least $1.26 million in retirement savings(7).
However, most Americans saving for retirement are still far from that goal. According to financial services company Empower, the median retirement balance among its U.S. clients in their 60s is $544,439(8). Fidelity’s internal data also shows that the average 401(k) balance for people ages 61 to 79 is just under $250,000(9).
So, in reality, very few Americans are saving seven figures for retirement—but that doesn’t mean they have to toil away until they end up broke. Everyone’s retirement goals are unique and depend on their lifestyle, rather than aiming for an arbitrary “magic number.”
There are a lot of things out of Rebecca Reed’s control, but two simple strategies could help her avoid her current financial troubles.
The first was to set aside savings early on, even just a little bit, which would allow her and her then-husband to compound interest over time.
Ideally, this would give her a better cushion against emergencies. If she had stashed away a little more for a rainy day, maybe she could have eaten those candies by now.
Another, equally important, issue is that Reed was in the dark about the family’s financial situation before her husband’s death. Reed was unaware of his financial obligations until those debts fell on his shoulders. When this happens, she doesn’t have the resources to cope with sudden and huge expenses.
As more couples choose to keep their finances separate, communication about money is more important than ever. According to census data, the share of married couples with no joint accounts at all increased from 15% in 1996 to 23% in 2023 (10).
While combining funds may not be the solution, couples should consider scheduling time to review their finances to prevent unpleasant surprises.
An easy way to create transparency and start preparing for retirement is to download a money management app. These software tools link to bank and card accounts to provide a clear visual representation of where your funds are going. With this data, you can easily understand where everything is going right now and how much money you can set aside for retirement and other savings priorities.
It’s also important to set realistic retirement savings goals rather than guessing how much you’ll need. A popular formula for a rough estimate is the 25 rule: Multiply your expected annual expenses during retirement by 25.
If you’re still unsure about how much money you’ll need, consider contacting a registered financial professional for more personalized guidance specific to your case.
The more you know about your financial situation, the better you can stay on track.
Join more than 200,000 readers and get first access to Moneywise’s best stories and exclusive interviews – curated and delivered with clear insights every week. Subscribe now.
We rely only on vetted sources and reliable third-party reports. For more information, see our Editorial Ethics and Guidelines.
Business Insider (1)(2); U.S. Census (3, 10); Lifetime Income Alliance (4); TIAA (5) Allianz Life (6); Northwestern Mutual (7); Empowerment (8); Fidelity (9)
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.
