Podcast Summary: So Money with Farnoosh Torabi

Episode 1870: How to Retire on Social Security Alone
Date: August 25, 2025
Guest: Ann Tergeson, Wall Street Journal Reporter

Episode Overview

This episode explores how Americans are managing retirement with little or no personal savings, relying almost solely on Social Security. Host Farnoosh Torabi interviews Wall Street Journal reporter Ann Tergeson, who, along with Veronica Dagger, profiled individuals from around the country living on Social Security in retirement. The conversation delves into the realities, creative survival strategies, regrets, and resilience displayed by these retirees.

Key Discussion Points & Insights

Why Study Retiring on Social Security Alone?

• Previous profiles focused on retirees with significant savings; this time, Ann and her co-writer wanted to shine a light on those with almost no retirement savings (04:33).
• Reality: 1 in 7 Social Security recipients aged 65+ rely on benefits for nearly all their income (06:15).

“Thanks to Social Security, the vast majority of people in this country do actually have a retirement income waiting for them... a lot of people don’t [save on top of that].”
— Ann Tergeson (05:04)

Creative Strategies for Making Ends Meet

• Navigating Assistance Programs
  Many low-income retirees supplement Social Security by tapping into government programs:
  • Section 8 (housing subsidies)
  • Federal help with Medicare and prescription drug costs
  • Utility bill assistance, especially important in high-cost or harsh-climate areas (07:59, 10:40)
  • Elder Care Locator and Area Agencies on Aging connect seniors to local resources

“[Kathy] was just a font of knowledge of all these different programs that people, lower income seniors, can qualify for.”
— Ann Tergeson (08:47)

• Location Optimization
  Moving from high- to low-cost areas (e.g., NY to NC) drastically reduces expenses, especially property taxes and rent. However, most people still prefer to stay near family and friends (11:33).

• Frugal Living and Community Support

  • Retirees leverage senior discounts, subsidized transportation, food programs, and strong neighborhood networks.
  • Sharing resources and mutual help create a supportive environment (15:14).

Case Studies of Real Retirees

Kathy Rote—Social Worker Living in Tucson

• Survives on $1,040/month Social Security and assistance programs, plus a paid-off home bought with a $60,000 inheritance.
• Pays $135/month for utilities and phone; $200/month for food.
• Enjoys a vibrant life with friends, neighborhood connections, folk music, and community activities despite being disabled.
• Ensures independence with a motorized wheelchair and a van. Hires locals for help, fostering deeper community ties (07:59, 12:51, 13:33, 15:13).
• Proactively budgets for annual bills (like property tax) every month to avoid pitfalls (21:49).

“She’s very independent, and that’s been a theme throughout her life... her life is very full.”
— Ann Tergeson (14:07)

Joyce McKinney—Single Woman in Philadelphia

• Lives on $1,800/month, paying $584/month for subsidized rent and $343/month for a storage unit.

• Utilizes low-cost senior transportation ($1/ride) and maintains a $200/month food budget.

• Engaged in a senior center for meals and community, filling her life with social activities (19:27, 20:45).

• Regret: Wishes she’d raised her earnings during her career to qualify for higher Social Security benefits—highlighting the crucial link between lifetime earnings and future Social Security checks (23:12).

“She had regrets... boosting her earnings during her working years could have raised her Social Security benefits.”
— Farnoosh Torabi (23:12)

Eric Miller—Retired Chef

• Lives on $1,400/month after a physically demanding career.
• Planned to work longer but forced into early retirement due to health limitations, a common issue among those with manual labor backgrounds (24:13).

“Every single year I see... people who retired expected that they were going to work a couple years longer than they actually did.”
— Ann Tergeson (24:13)

Barbara Talisman—The Nomad

• 63, with some savings ($100k+), but mostly funds her retirement by house-sitting, slashing her housing costs.
• Spends significantly less from savings monthly (avg. $800), while using Social Security for the rest.
• Pursues her passion for travel and is starting a second act as a travel agent, illustrating a highly non-traditional approach to retirement (26:07, 27:36).

“[Barbara] just, she never really saved a significant amount for most of her career... her strategy was to cut out housing entirely.”
— Ann Tergeson (26:07)

The Importance (and Limits) of Planning

• Many retirees underestimated the risk of early retirement due to health issues or layoffs.
• Widows or widowers experience financial adjustments—Social Security can help but rarely makes the survivor whole.
• Delaying claiming Social Security can boost benefits by 6-8% per year up to age 70 (28:35):

“People really need to think about the value of delaying Social Security... that’s a guaranteed 6 to 8% increase per year.”
— Ann Tergeson (28:35)

• Lifetime Social Security benefit projections are available via SSA.gov (27:58).

• Widespread fear exists about Social Security’s long-term solvency, but history suggests Congress is unlikely to strip benefits for current or imminent retirees (28:35).

Notable Quotes & Memorable Moments

• “Imagine living on just $1,900 a month in your 60s, 70s, and beyond.”
  — Farnoosh Torabi (03:50)

• “[Kathy] buys a home thanks to an inheritance... has no debt, gets discounts on utilities, food, property taxes.”
  — Farnoosh Torabi (12:51)

• “[Joyce] regrets not pursuing higher education, so maybe she could earn more.”
  — Farnoosh Torabi (23:12)

• "When it comes time to pay the property taxes, maybe they don’t have enough money in that account. So Kathy is very careful to set aside that money every month to make sure that she has it there when she needs to pay."
  — Ann Tergeson (21:49)

• "If we're not getting this [Social Security], I'm going to be wreaking havoc. There will be pitchforks in the streets."
  — Farnoosh Torabi (27:58)

Timestamps for Key Segments

• [02:32] Ann Tergeson introduces the article’s focus: Retiring with only Social Security
• [06:15] Farnoosh shares stats: 1 in 7 Social Security recipients rely on it almost exclusively
• [07:59] Kathy’s in-depth profile and creative survival strategies
• [11:33] The role of moving to a lower cost area in affordable retirement
• [13:33] Kathy’s enjoyment of retirement despite limitations; community and independence
• [19:27] Joyce’s experience in Philadelphia: downsizing, community engagement
• [21:49] The importance of monthly budgeting for big annual expenses
• [23:12] Regrets of retirees, especially missed opportunities for higher income
• [24:13] Underestimating likelihood of early retirement due to health or layoffs
• [26:07] Barbara’s ‘nomad’ approach: house-sitting, travel, alternative lifestyles
• [27:58] How and why to check your Social Security projections
• [28:35] On delaying Social Security and the political reality of benefit cuts

Conclusion

Through raw storytelling and detailed research, this episode shines a light on the realities faced by retirees relying solely on Social Security. Despite financial constraints, many show resilience, resourcefulness, and a deep sense of community—underscoring that a fulfilling retirement, while challenging, is possible even with minimal savings. The advice throughout highlights the power of planning, the value of tapping available resources, and the wisdom of considering Social Security strategies carefully.

Read the referenced Wall Street Journal article [linked in the show notes].