A retired woman recently reached out to MarketWatch with her fears of becoming homeless once her husband retires at the age of 76. The couple has a meagre $100,000 in the bank. They have a big house with a mortgage and live with four dogs. Moving after retirement isn't an option for the couple as it will cost a lot and they have nowhere to go.
Rich Dad Poor Dadauthor Robert Kiyosaki had recently warned that Baby Boomers are looking at a wave of homelessness amid a worsening financial outlook. With rising living costs amid growing housing and medical bills, seniors, especially those in a financially precarious situation, are concerned they won't last long in retirement.
The retired woman faces critical questions like what if her husband can't work anymore, or what happens if the house needs a major overhaul? While it is advisable to continue paying the mortgage and balance the books, the couple could also exploreproperty-tax relief for seniorsoffered through various programmes by the state or at a local level.
While they explore low-income home energy assistance or weatherization assistance programmmes, reverse-mortgage counseling could also work, given that the home is a major asset for the couple. At the county level, some entities can also offer assistance to those who don't qualify for Medicaid.
US inflation reached 3.3% in March, and keeping $100,000 in a checking account will result in you losing purchasing power over time.
Instruments like certificate of deposit (CD) or a high-yield savings account offer rates over 4%, where high-yield accounts are more liquid with withdrawals limited to six a month. While the rates for high-yield savings accounts can change even after you deposit money, the rate for CDs remains constant throughout the tenure of savings.
While $100,000 appears less for people in their 70s, a 2025 Northwestern Mutual report found that the average retirement savings for those in their 70s stood at $114,000.
'No matter how much money you save for retirement, it'll only go as far as your lifestyle allows,' the Northwestern Mutual report said. 'Think about what you want from retirement and talk with your spouse or partner if you have one. Analyze whether your current savings rate can realistically support that vision, based on conservative assumptions about risk and future returns. If not, you may need to tweak your savings strategy or compromise to adjust your expectations.'
Typically, financial advisors recommend aportfolio mix of 40% stocks, 50% bonds, and 10% cashfor 70-year-olds. However, putting your entire net worth of $100,000 in stocks isn't an option anymore. The goal now should be to ensure you have adequate cash in addition to your retirement income.
'At the start of every year, make sure you have enough cash on hand to supplement your regular annual income from annuities, pensions, Social Security, rental[s] and other regular income,' Charles Schwab had mentioned.
Source: International Business Times UK
