A Couple Struggling on Just $2,000 in Social Security Asks For Help - Here's What Experts Recommend

When it comes to planning for retirement, most hope to save up something for their golden years. But what happens if you reach retirement with little in savings? That's where one couple finds themselves.

With limited resources, making the right money moves becomes critical. We explore one couple's story and financial advisors' takes on how to move forward.

Barely getting by

One couple wrote into Reddit asking for help. They're both in their late 70s and receive about $2,000 a month in Social Security benefits. Beyond a paid-off house and $40,000 in savings, they are solely relying on their Social Security income to get by.

Additionally, they have several debts, including a $13,000 loan for a new AC, $2,500 in credit card debt, and $6,000 in care credit debt.

If this situation feels all too familiar, keep reading. We spoke to financial advisors and got their honest advice on what they would recommend someone do if they were facing a similar situation.

Reconsider homeownership

This retired couple has a paid-off house, which is a major financial accomplishment. But with their tight financial situation, leaving so much tied up in home equity might not be the right move.

"Pride in owning your home doesn't matter if you're living paycheck to paycheck," says Eric Croak, CFP and President at Croak Capital.

Unfortunately, it sounds like this couple is living from Social Security check to Social Security check. Croak suggests seriously considering leaving homeownership behind.

"Free up that equity, reduce maintenance costs, and simplify their lifestyle," says Croak, "It's brutal advice, but it could be the one move that turns their retirement around."

Cashing out home equity in favor of finding an affordable rental could breathe some life into this couple's budget.

Shore up debt when you have breathing room

The first financial priority is to get their budget to a comfortable place. But spending down most of their $40,000 in savings to cover debts doesn't make sense to Croak.

"Paying off that $2,500 credit card balance and $13,000 AC loan only makes sense when they've got a little cushion in their cashflow," says Croak, "Otherwise, you risk living paycheck to paycheck just servicing debts."

Croak does suggest paying down the credit card debt as soon as possible due to the likely high interest rate attached. But he suggests, "negotiate with the lender on the AC loan."

Ruthlessly cut expenses

Croak says it's time for this couple to "completely restructure spending."

"Forget about budgeting by categories," says Croak, "Instead, give themselves a weekly spending limit and ruthlessly allocate to what's truly necessary."

Getting by on their monthly expenses, plus a little in savings, will likely be tough. But staying vigilant about spending can help this couple stretch out their limited resources.

Realistically look at costs

After paying off those debts, "I would look at their monthly expenses to see if they could live on $2k a month," says Jay Zigmont, PhD, CFP®, Founder of Childfree Trust®.

As they dig into their expenses, it's important to stick to essentials only. At this stage, with this level of savings, the couple likely needs to prioritize spending only on required things, like housing, food, medical costs, and other unavoidable costs.

Avoid any more credit card debt

Unfortunately, this couple has slipped into credit card debt. Even if they get out, it's possible they'll reach for the card again when things get tight. But according to Croak, it's critical that they "stop hemorrhaging on credit card debt."

It might feel easier said than done to avoid using their credit card. But it's important to avoid borrowing money at such a high interest rate, especially in their precarious situation.

Find an additional income stream

Due to their age, Croak acknowledges that the idea of simply getting a job might not work due to health constraints. But he highly recommends seeking out some new streams of income.

If they are able to work, even part-time, that's a great way to make ends meet. But if they can't, it's important to look for new income streams.

Croak suggests they, "Look at their house and lifestyle for highly specific opportunities to bring in cash."

For example, if they stay in their home, renting out spare bedrooms or parking spaces could be a vital lifeline for their cash flow. Or if they have hobbies, like making blankets or fishing lures, that could be a great way to supplement their income.

Bottom line

No one wants to find themselves scraping by in retirement. But it can happen to anyone, especially if you've been dealt a bad hand. In fact, according to a 2025 survey from Northwestern Mutual, 54% of fear they won't be financially prepared for retirement.

While it might be challenging, finding ways to supplement your Social Security could make all the difference.

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