What are the warning signs that you will run out of retirement money?

Key warning signs include: your portfolio withdrawal rate has crept above 6-7% (portfolio balance relative to spending is declining); your portfolio balance has dropped more than 30% and you have not reduced spending; you are drawing from Roth IRA early in retirement (the last-resort account is being used first); your annual investment return statements show the declining balance trend despite positive markets; you are relying increasingly on credit cards or debt; and you began claiming Social Security early (62-65) and received a permanently reduced benefit, creating higher portfolio dependency. Any one of these signals warrants a retirement plan review.

I'm 75 and running low on retirement savings — what can I do?

At 75, your best options are: (1) Reduce discretionary spending — every $500/month reduction extends the portfolio by 2-4 years; (2) Downsize your home and invest the equity difference — freeing $150,000-$400,000 can be transformative; (3) Consider a reverse mortgage on your home — provides monthly income or a line of credit without moving; (4) Explore part-time work — even $15,000-$20,000/year can dramatically extend portfolio life; (5) Delay or minimize non-essential expenses and large one-time purchases; (6) Review Social Security survivor benefit eligibility (if widowed) or other potential income sources. If you are not yet 80, a QLAC might still be available to lock in future longevity income.

What happens to a retiree with no savings?

A retiree with no savings (or fully depleted savings) lives on their remaining guaranteed income. For most Americans, this means Social Security — the average benefit in 2026 is approximately $1,900/month for retired workers. Additional programs available to low-income seniors include: Medicaid (covers health and long-term care if income/assets meet limits), SSI (Supplemental Security Income, up to $943/month in 2026 for very low-income), Medicare Savings Programs (cover Medicare premiums), SNAP food benefits, and Low Income Home Energy Assistance (LIHEAP). While these programs provide a safety net, life on Social Security alone is tight in most metro areas.

Running Out of Money in Retirement: Warning Signs and What to Do Now

Discovering that your retirement savings are depleting faster than planned is alarming — but the earlier you recognize it and act, the more options you have. Here is how to assess your situation and what concrete steps are available at different stages of depletion.

Warning Signs Your Portfolio Is in Trouble

Warning Sign	What It Signals
Withdrawal rate above 6% of current portfolio balance	Likely on track to deplete within 15-18 years
Portfolio down more than 30% from peak, spending unchanged	Sequence of returns damage — act before it worsens
Using Roth IRA early in retirement	Burning your last-resort account; reconsider savings strategy
Carrying credit card debt each month	Cash flow negative; portfolio can’t keep up with living costs
Interest/dividends don’t cover RMD	Portfolio principal is being consumed
Skipping investment contributions (pre-retirement)	Arrived at retirement underfunded
Medical event depleted a significant portion	Healthcare risk not adequately planned for

How to Assess Your Actual Risk Right Now

Step 1: Calculate your current withdrawal rate: Annual portfolio withdrawals ÷ Total portfolio balance = Withdrawal rate

Your Withdrawal Rate	Risk Level	Action
Under 4%	Low	Continue monitoring; well within sustainable range
4.0-5.0%	Moderate	Manageable; minor adjustments if markets are poor
5.0-6.5%	Elevated	Review spending; build contingency plan
6.5-8.0%	High	Immediate action needed; portfolio likely depleting
Over 8.0%	Critical	Depletion timeline is close; major changes required

Step 2: Project balance forward using a simple calculation:
Current portfolio × (1 + expected return - withdrawal rate) = Year-end balance

Starting Balance	Return	Withdrawal	Year-End	10-Year Projection
$400,000	5%	$24,000 (6%)	$396,000	~$334,000
$400,000	5%	$20,000 (5%)	$400,000	~$386,000
$400,000	5%	$16,000 (4%)	$404,000	~$440,000

Immediate Action Steps If You Are Concerned

Step 1: Reduce Discretionary Spending First

Spending Category	Typical Annual Cost	Easiest Cuts
Travel/vacation	$5,000-$15,000	Reduce frequency; domestic over international
Dining out	$3,000-$8,000	Home cooking 3-4 nights/week saves $2,000-$5,000
Subscriptions/entertainment	$1,500-$3,000	Audit and cancel unused services
Gifts to adult children	$2,000-$8,000	Reduce without eliminating
Clothing	$2,000-$5,000	Needs-driven only

$800-$1,200/month in spending reductions extend a $500,000 portfolio by 3-5 additional years — significant breathing room.

Step 2: Consider Housing Equity

If you are a homeowner:

Option	Potential Benefit	Considerations
Downsize to smaller home	Free up $100,000-$400,000 in equity	Moving costs; lifestyle change; tax exclusion of $250K/$500K gains
Reverse mortgage (HECM)	$1,000-$2,500/month or large lump sum	Stay in home; repaid at death/sale; costs apply
Rent out a room	$800-$1,500/month	Privacy consideration; tenant management
Relocate to lower cost-of-living area	Reduce ongoing expenses 10-25%	Lifestyle change; proximity to family/doctors

Step 3: Increase Income

Option	Realistic Income	Considerations
Part-time work (flexible)	$10,000-$25,000/year	Reduces portfolio draw; provides social engagement
Consulting in former field	$20,000-$60,000/year	Higher hourly rate; variable availability
Social Security optimization	Permanent income increase	If not yet at FRA, delay (if possible) increases benefit
Rental income from property	$12,000-$24,000/year	Requires property management
Teaching, tutoring	$8,000-$15,000/year	Flexible; intellectually engaging

Situation	Potential Income Increase
Not yet filed — delay to FRA or 70	6-8%/year increase per year of delay
Divorced (marriage 10+ years)	May be entitled to ex-spouse’s record
Widowed	Survivor benefit: up to 100% of deceased spouse’s larger benefit
Over 65 and retired recently	Check if Restricted Application (file on spouse now) is still available

If you are under 70 and have not yet claimed Social Security, delay is almost always correct when savings are stressed — every year of delay permanently increases your guaranteed income.

Longer-Term Solutions by Age

Ages 62-70: More Options Available

Solution	Potential Benefit
Return to work significantly	Rebuild portfolio; delay SS; reduce draw
Aggressive Roth conversion	Reduce future RMD burden while in low-income window
LTCI purchase (if not too late)	Protect remaining assets from care costs
Rebalance to lower fees	0.5% less in fees on $400K = $2,000/year saved

Ages 70-80: Targeted Actions

Solution	Potential Benefit
QLAC with remaining IRA funds	Late-life income guarantee reduces longevity risk
Downsize housing	Major equity release event
Reduce withdrawal rate	Even small reduction is significant
QCD for charitable giving	Reduces taxable income; honors existing commitments

Ages 80+: Safety Net Focus

Resource	How to Access
Medicaid	Asset and income-based LTC coverage; requires spending down to eligibility limits
SSI (Supplemental Security Income)	Apply at Social Security Administration if income/assets are very low
Area Agency on Aging	Free services: meals, transportation, care coordination
Reverse mortgage	Available at 62+; still accessible at 80+
Family support	Difficult but important to discuss early

Two Safety Nets That Are Always There

No matter what happens to your savings, two key protections remain:

Protection	Details
Social Security	Never goes to zero; if you worked 10+ years, you have a benefit for life. Maximize by claiming at 70 if not yet filed.
Medicare	Healthcare coverage at 65 regardless of financial situation; Medicaid for low-income if needed

These two programs mean retirement depletion, while very difficult, does not mean medical abandonment or complete income loss. Social Security alone supports millions of retirees — it is survivable, especially if maximized.