Can You Really Afford to Retire on Social Security Alone?
By Tyler Plack
Tyler Plack is the President of South River Mortgage. Tyler holds an active FHA Direct Endorsement (DE) underwriting certification and is the author of The Retirement Solution: Maximizing Your BenefitTyler is a seasoned entrepreneur and real estate investor renowned for his expertise in reverse mortgages and his commitment to addressing seniors' equity challenges. Tyler brings a unique perspective to his ventures, having built several successful companies throughout his career. His insights are frequently sought by industry publications, where he is recognized for his vast knowledge in the realm of reverse mortgages.
An avid investor in income-producing properties, Tyler is dedicated to helping seniors navigate their financial needs with compassion and expertise. When Tyler is not helping solve America's retirement crisis, he is a skilled pilot flying airplanes for fun.
Retire With Just Social Security?
Why So Many Retirees Struggle on Social Security Smart Moves to Strengthen Your Retirement Readiness What If You Still Don’t Feel Secure? When Social Security Isn’t Enough, Your Home Can Help FAQ: Social Security and Reverse Mortgages Ready to Secure Your Retirement?Can You Really Afford to Retire on Social Security Alone?
After working since she was 14, Lynda is finally two years away from retirement — and she’s exhausted.
Like many Americans, she’s worried her Social Security check won’t stretch far enough. “I see so many older adults working in ShopRite or Walmart,” she says. “It truly is horrible. You work and pay into a system for over 46 years and get so little back.”
If you’ve ever shared that fear, you’re not alone. Every day, thousands of future retirees wonder whether Social Security will be enough — and what they can do to avoid financial stress later.
Why So Many Retirees Struggle on Social Security
Social Security was never meant to cover all of your living expenses. It was designed to supplement your savings and pensions — not replace them.
Today, the average monthly benefit is about $1,900. Meanwhile, the average retired household spends more than $4,000 per month on housing, food, transportation, and medical care.
That math doesn’t work for long. Rising costs, longer lifespans, and higher healthcare expenses make it harder for retirees to live comfortably on Social Security alone.
The Emotional Toll of Financial Uncertainty
Money worries don’t just affect your budget — they affect your mental health.
Feeling like you’ll have to work forever, even after decades of contributing, can leave anyone feeling anxious, frustrated, or even depressed.
But the good news is this: there are practical, proven ways to ease those fears before retirement arrives.
Smart Moves to Strengthen Your Retirement Readiness
These strategies — inspired by real retirees who’ve already been through it — can make a significant difference in your financial comfort.
1. Eliminate or Reduce Debt
Start by paying down high-interest credit cards or personal loans. Every dollar you free up now becomes a dollar of breathing room later.
2. Rehearse Retirement
Spend a few months living on your projected retirement income. Track where your money goes. If you come up short, you’ll have time to adjust your spending before your paycheck disappears.
3. Simplify and Downsize
Sell unused items, cut recurring subscriptions, and streamline your budget. Many retirees say this not only saves money but also reduces stress and clutter.
4. Focus on Health Maintenance
Good health saves money. Exercise regularly, eat well, and keep preventive appointments — staying healthy can dramatically reduce prescription and insurance costs later.
5. Build an Emergency Fund
Keep at least three months of living expenses in cash or a savings account separate from your retirement funds. This helps you avoid dipping into savings or credit when unexpected bills appear.
What If You Still Don’t Feel Secure?
Even the most disciplined savers can feel uneasy about outliving their money — especially when most of their wealth is tied up in their home.
For many, that’s where a reverse mortgage comes in.
A reverse mortgage lets you tap into your home equity to create a monthly income stream, line of credit, or lump sum — all without selling or moving. You stay in your home, maintain ownership, and receive tax-free funds that can supplement Social Security, cover healthcare costs, or simply give you peace of mind.
It’s not about taking on new debt. It’s about unlocking the value of what you’ve already built.
Example: Turning Home Equity Into Peace of Mind
Mary, 68, had a paid-off home but only $1,700 a month in Social Security. She used a reverse mortgage line of credit to create a financial cushion — just in case.
A year later, unexpected medical bills arrived. Instead of pulling from savings, she used her credit line to cover the costs. Her retirement stayed intact, and her stress dropped dramatically.
When Social Security Isn’t Enough, Your Home Can Help
If you’re nearing retirement and worried that Social Security alone won’t cover your needs, it may be time to explore every option.
A reverse mortgage could give you the flexibility to:
- Stay in your home comfortably
- Stop worrying about monthly shortfalls
- Avoid draining your savings prematurely
At South River Mortgage, we specialize in helping retirees make informed, pressure-free decisions about their future. We’ll help you determine whether a reverse mortgage is the right fit — and how much you might qualify for.
FAQ: Social Security and Reverse Mortgages
Will I lose my home with a reverse mortgage?
No. You keep ownership and title as long as you meet loan obligations such as paying property taxes, insurance, and maintenance.
Will my heirs have to pay off the loan?
No. Reverse mortgages are non-recourse loans, meaning your family will never owe more than the home’s value.
Can I set up a reverse mortgage before retiring?
Yes. Many homeowners establish one while still working so the line of credit can grow until they need it.
Is the money from a reverse mortgage taxable?
No. The funds you receive are loan proceeds, not income, so they aren’t taxed.
Ready to Secure Your Retirement?
You’ve worked hard your whole life. Now it’s time to make your home work for you.
Get an instant reverse mortgage quote today — it’s completely free and takes less than a minute.
Call 855-212-9114 to speak with a licensed South River Mortgage specialist. We’ll answer every question and help you feel confident about your next chapter.
