5 Signs You're A 'Lower-Class' Retiree

The National Council on Aging found in 2024 that over 17 million seniors are classed as "economically insecure." This figure includes individuals aged 65 and older with incomes at or below 200% of the federal poverty level, or a little over $30,000 per year. A $30,000 yearly budget translates into $2,500 per month — just slightly more than the country's median monthly mortgage payment of $2,329, per Rocket Mortgage. Having a budget restricted to a figure like this is a clear-cut sign that you're living as a lower-class retiree, but raw numbers don't always tell the whole story. Some retired people may live completely debt free or have other financial holdings, making a Social Security payment more of a supplement to an already-fulfilling lifestyle, rather than a central pillar of their finances.

Other important signs of lower-class retirement lifestyles creep into the picture in the form of restrictions. If the total sum of money you have available doesn't restrict your lifestyle, other necessities or choices can signal this reality. For instance, if you find that you have to continue working during your retirement years, it's likely a sign that you don't have the financial means to support expanded mobility. The same can be said of those who find that they can't afford to go on vacation. Other actions — such as leaning on Social Security for the brunt of your budget, adding in additional assistance programs, or downsizing parts of your life — can also signal you might be in a tighter economic position than some of your retired peers.

Older Americans take a decent number of vacations each year. In its 2025 Travel Trends report, AARP found adults aged 50 and older took an average of 3.9 trips in 2024 — roughly one trip every three months. Traveling at a lower rate than that could signify that you're working with lighter financial weight than others in your age cohort. Vacations are a common feature of retirement living, as it's often the period in adults' lives where leisure time is most abundant. There may always be plans and commitments to work around, but retirees tend to shed one of the largest time sinks of their waking life when they leave their job.

If you're struggling to make the financials work to facilitate even one or two vacations per year, you likely fall into the economic lower class as a retiree. That's not to say that actually going on holiday trips indicates a certain economic status, though. Some people are perfectly happy to spend their free time in the place they've chosen to call home, or simply decide to go on one big trip each year. AARP also found that the average retiree spends roughly $6,800 on vacations annually. Whether or not you hit this number, if you're significantly short of the ability to make this spending commitment, you may have some work to do financially.

Many older Americans cut down their working commitment instead of giving it up entirely. Using data from the Bureau of Labor Statistics, CNBC calculated that the volume of workers aged 65 and older in the U.S. increased by 33% between 2015 and 2024. Working past retirement age can make for a smoother transition out of the workforce, and it helps ease the pressure on your investment accounts. In particular, consulting work can be a high-paying retirement side gig. But, if you find that you must continue to work, you're looking at a different scenario altogether.

There are some retirees who may have the option to retire outright, but their current budgetary needs require them to draw down on their retirement accounts at an unsustainable rate. People in this position may need to start working again to replace that income stream if their savings run out too early. A recent AARP survey found that 7% of retired Americans have reentered the workforce, with half of that population citing money concerns as their primary motivation. Alternatively, you might be a part of the American public with little to no retirement savings that are essentially unable to stop working. AARP also found in 2024 that 20% of Americans over 50 have no retirement savings. Even if you have a high-paying job today, you might not be capable of sustaining that income as you continue to age — especially if that job involves physical labor.

67% of seniors depend on Social Security benefits for more than half of their retirement income, according to a 2024 survey by The Senior Citizens League. The basic math of retirement budgeting suggests that you need to deliver at least half your retirement income from other sources, since you'll need roughly 80% of your preretirement income to maintain your lifestyle. Social Security replaces up to about 40% of that figure, yet the same Senior Citizens League survey found a full 27% of seniors depend on Social Security for the entirety of their retirement income. If you fall into this extreme end of the spectrum, you're almost certainly within the lower economic class.

Relying on Social Security to fund the bulk or entirety of your daily needs leaves little room in the budget for splurges, emergencies, and other spending categories. The Social Security Administration (SSA) reports the average Social Security check comes out to $2,071 as of January 2026, with a maximum benefit of $4,152 for those who don't delay retirement. Even that maximum fails to meet the threshold of quality financial mobility for most, given the fact that over-60s average more than $1,300 per month on healthcare expenses alone (via Kiplinger). Lower-class retirees may have difficulty replacing appliances or a vehicle when the need arises, and many financial needs get squeezed even harder if you're still carrying mortgage or other loan repayment obligations.

Downsizing can be a valuable tool for retirees. There are lots of reasons to sell your home, car, or other belongings that no longer serve your lifestyle needs. Some retirees will consider moving to a new city or state that doesn't add tax obligations on Social Security benefits, for instance. This offers a direct improvement that can help extract capital from your home while also limiting the burn rate of your retirement savings. Some Americans might also own more than one car, or have a few recreational vehicles they no longer use enough to justify maintaining. However, other downsizing efforts are foisted upon retirees. If you find the alternative to selling an asset might be to succumb to the foreclosure process and eventually lose the property altogether, this could be symbolic of your economic class.

Lower-class retirees are susceptible to this need, in particular. Redfin reports that more than half of the homeowning population of baby boomers have no mortgage, and even those still paying off their house may consider the property their most valuable asset. However, selling a house can also be emotionally difficult, and the financial mobility it provides is also potentially limited. Facing a need to sell likely means that you need the capital to support something else that's already commanding your attention, leaving less of the proceeds available for a new purchase or as investment capital that can reinvigorate your portfolio.

Social Security isn't just a singular support tool for retired Americans. The government agency is also responsible for disability and other benefits, as well as acting as a connection point for seniors enrolling in Medicare. Supplemental Security Income (SSI) is one tool offered by the SSA, and it can be a vital lifeline for those with little to no financial support beyond their benefit check. SSI is an additional tool that helps people experiencing extreme financial vulnerability. Recipients must meet certain financial criteria that essentially excludes anyone outside of the lower band of the economic spectrum. You'll also need to either be at least 65 or experiencing blindness or other hardships brought on by a disability to qualify.

As of 2026, the SSA offers maximum SSI benefits of $994 per month to individual recipients and $1,491 for couples. Maintaining certain financial assets — such as more than $2,000 in the bank for single recipients — can eliminate your eligibility for the program, and earning income from working reduces your benefit amount by $1 for every $2 you earn in salary payments. Other assistance programs can be found at the state level, and they largely utilize the same basic structure to deliver additional financial support to those facing the most extreme levels of fiscal vulnerability.