Core Insights - The article discusses the financial challenges faced by older Americans, particularly focusing on the case of a 75-year-old man named Enzo who has limited retirement savings and is still working full-time [5][19] - It highlights the importance of Social Security benefits and potential strategies for improving retirement security, including working longer and optimizing savings [2][8] Group 1: Current Financial Situation - As of 2024, nearly 19% of Americans aged 65 and over are still working, which can help mitigate savings shortfalls [2] - The median retirement savings for Americans aged 65 to 74 is $200,000, while those aged 75 and over typically have around $130,000 [3] - Enzo has only $31,000 in savings despite earning $65,000 annually, indicating a significant gap in retirement preparedness [5][19] Group 2: Social Security Benefits - Enzo is eligible for Social Security benefits, which could amount to approximately $2,360 per month based on his earnings history [6] - If he has not claimed benefits yet, he may be entitled to retroactive payments for up to six months [7] - Combining his salary with Social Security could help cover expenses and allow his savings to grow [7] Group 3: Investment and Savings Strategies - It is recommended to save in tax-advantaged accounts like Roth IRAs, which do not have required minimum distributions [9] - Experts suggest maintaining a conservative investment strategy, focusing on stable assets like bonds, especially for those past retirement age [10] - Estimating annual expenses and planning for a sustainable withdrawal rate from savings is crucial for long-term financial health [11] Group 4: Housing and Living Arrangements - Home equity can be a valuable resource for older adults, and options like reverse mortgages or cash-out refinancing may be considered [13][15] - Downsizing or moving into multi-generational living arrangements can alleviate financial burdens and provide emotional support [18][19] - Selling a home can yield profits exempt from capital gains taxes up to $250,000, which can be reinvested into retirement savings [17]