We’re retired, have $70K and $3,780/month in Social Security. With health care costs — can we survive 20 more years?

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We’re retired, have $70K and $3,780/month in Social Security. With health care costs — can we survive 20 more years?

We’re in our 60s, retired, have $70,000 in savings and Social Security of about $3,780/month. But high health care costs eat into our budget — how can we survive at least 20 more years?

If you and your partner are in your 60s and have $70,000 in savings, you don’t have a ton of

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. The good thing is, you do have Social Security, so if you have a $3,780 monthly benefit, you at least have some income you can count on.

Plus, some retirees even make it work with Social Security alone. In 2024,

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found that 27% of seniors rely on Social Security for 100% of their income.

Unfortunately, seniors face many big costs — and health care is often one of the biggest. Spending on medical care alone could take up a huge portion of your Social Security benefit, so it’s not a surprise you’re worried about how you can cover your care.

Fortunately, you may have some options available to you. Here’s what you need to know to try and ensure your retirement money lasts.

If you have a nest egg of $70,000, your savings will provide you with only around $2,800 in income per year. That’s because you’ll likely maintain a safe withdrawal rate to avoid emptying your accounts — and most experts say that means

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of your account balance in year one and making annual adjustments for inflation.

When combined with your $3,780 per month Social Security benefit, you’ll have around $48,160 per year in income from your savings and Social Security.

Unfortunately,

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reveal average expenditures on health care among those 65 and over total more than $8,000 per year.

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also found a 65-year-old retiring in 2024 needs around $165,000 saved to cover all of their out-of-pocket costs throughout retirement, while the

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warns that only 75% of Social Security benefits remain after paying premiums and out-of-pocket costs for the median retiree.

All of these numbers paint a troubling picture given that you most likely can’t easily afford to spend upwards of 15% of your income just on medical costs — depending on which estimate you use.

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The best way to preserve your nest egg is to do what you can to lower medical care costs so you can use your Social Security benefits and limited savings to pay for other necessities.

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suggests some of the following ways to do that:

Shopping carefully for a Medicare Advantage or Medigap plan to reduce out-of-pocket costs associated with traditional Medicare. While you must pay premiums for these plans, it can be cheaper to buy them than to pay for all coinsurance costs and things Medicare doesn’t cover.

Asking your care provider to switch to generic medicines to keep costs down.

Getting routine health care screenings and focusing on preventative care to prevent small health problems from turning into major health issues.

Seeking charity care at non-profit hospitals.

Looking into financial assistance programs that help seniors cover medical and food costs and arrange transportation to doctor visits.

If you are unable to reduce your costs, you can also look at ways to increase your retirement income or cut other spending. For example, you could work part-time to bring in extra income, downsize your home and invest any extra funds you get out of your equity, or move to an area with a lower cost of living so you have more money to devote to medical care.

By taking these steps, hopefully you can shore up your financial security and make retirement work financially for you — even despite the fact that you don’t have a huge amount of savings to start with.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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