Core Insights - Older Americans face significant financial challenges in retirement, particularly due to high healthcare costs, which can consume a large portion of their income from Social Security [3][5]. Financial Situation of Retirees - A couple in their 60s with $70,000 in savings can expect a monthly Social Security benefit of $3,780, leading to an annual income of approximately $48,160 when combined with a 4% withdrawal from their savings [4]. - The Senior Citizens League reports that 27% of retirees rely solely on Social Security for their income [2]. Healthcare Costs - Average healthcare expenditures for individuals aged 65 and over exceed $8,000 annually, which can represent over 15% of a retiree's income [5][6]. - Fidelity estimates that a 65-year-old retiring in 2024 will need around $165,000 saved to cover out-of-pocket healthcare costs throughout retirement [5]. Financial Management Strategies - Experts recommend capping annual spending at around 4% of retirement savings in the first year, adjusting for inflation thereafter, to help manage finances effectively [4]. - To preserve retirement savings, retirees are encouraged to find ways to lower healthcare costs, allowing them to allocate Social Security benefits and limited savings to other essential expenses [6].