A 66-year-old woman recently called into The Ramsey Show with a common yet worrying dilemma: she and her 67-year-old husband had no savings and didn’t know how they would afford retirement. But experts quickly pointed out a little-known Social Security rule that could help them maximize their monthly income and secure a better future.
The Hidden Power of Waiting to Claim Social Security
Most people don’t realize that delaying Social Security benefits can significantly increase their monthly payments. While you can start collecting benefits at 62, doing so reduces your checks for life. But if you wait until 70, your monthly payments grow by about 8% each year you delay past your full retirement age (FRA).
For retirees with little or no savings, this increase can be a lifesaver. In Julia’s case (the caller from The Ramsey Show), waiting just a few more years before claiming could mean hundreds of extra dollars each month. That’s guaranteed income for the rest of her life—something that’s hard to come by.
Housing Costs: The Silent Retirement Killer
During the call, Julia also revealed a major problem: a $3,000 monthly mortgage. With no savings and limited income, that expense alone could drain their Social Security benefits.
The show’s financial experts recommended considering a move to a more affordable area. Downsizing or relocating to a lower-cost state could free up extra money for necessities like food, healthcare, and daily living expenses.
Simple Steps to Secure a Better Retirement
Many Americans find themselves in Julia’s position—nearing retirement with little or no savings. According to a recent study, nearly half of people between 55 and 66 have zero retirement savings.
So, what can you do if you’re in the same boat? Experts suggest three key steps:
- Delay Social Security if possible. The longer you wait (up to age 70), the more money you’ll get every month.
- Cut costs where you can. Consider downsizing your home or moving to a cheaper location to reduce expenses.
- Find ways to earn extra income. A part-time job, freelancing, or turning a hobby into a side hustle can help cover gaps.
It’s Not Too Late to Improve Your Retirement
Even if you haven’t saved a dime, smart Social Security decisions and budget adjustments can make a huge difference. The key takeaway? Waiting to claim Social Security could be the best financial move you ever make. If you’re in a similar situation, take action now—your future self will thank you
