The Personal Finance Podcast

Episode: How Millions Retire With Nothing in Savings

Host: Andrew Giancola

Date: December 8, 2025

Episode Overview

In this episode, Andrew Giancola addresses a stark financial reality: millions of Americans reach retirement age with little or no savings. He explores how retirees are managing with limited resources, analyzes the critical role of Social Security and debt-free living, and lays out practical strategies for listeners to avoid a financially insecure retirement. Throughout, Andrew’s tone is encouraging yet urgent, aiming to empower listeners to take control of their financial futures.

Key Discussion Points

1. Retirement Savings Realities in America

• Statistics on Savings

  • Median retirement savings for Americans aged 65-74: $200,000
  • 1 in 5 Americans over 50 have no retirement savings
  • ~40% of retirees rely solely on Social Security (05:28)
  • “Four of them are completely relying on Social Security. So we’re looking at 60% already that have minimal to no retirement savings.” — Andrew (05:34)

• Visualizing the Shortfall

  • At a retirement party with 10 retirees, 2 have no savings, 4 rely solely on Social Security, and only a small minority have significant savings.

• Retirement Spending Patterns

  • Median annual retiree spending: ~$34,000
  • Average spending is higher ($60,000), but skewed by wealthier retirees
  • Spending decreases with age—highest in 60s, drops after 75-80 (15:28)

2. How Retirees Get By with Little or No Savings

• Social Security as the Bedrock

  • The vast majority depend on Social Security for at least half of their retirement income (10:00)
  • Example scenarios for “Linda” (single retiree) and “Bill & Maria” (married) illustrate how Social Security, supplemented by modest savings withdrawals, forms the core of most retirees’ budgets
  • “If you rely on Social Security, you will really never have freedom in your life.” — Andrew (11:31)

• Living Modestly

  • Retirees with little savings keep costs low: basic housing, minimal travel, older cars and phones, home-cooked meals (20:44)
  • “They don't have the fancy car, they don't have the big fancy house...They're living a very modest lifestyle.” — Andrew (21:42)

• Reducing Expenses

  • 80% of Americans over 65 own their home (13:53)
  • Paying off homes and all debts significantly reduces required income in retirement
  • “Imagine a retirement completely debt free, where then all you have to worry about is your property taxes, your insurance, maintenance on the home.” — Andrew (14:39)

3. Risks and Trade-Offs of Retiring with Minimal Savings

• Financial Fragility

  • Even small emergencies (roof repair, medical bill) can be catastrophic for retirees without cash reserves (05:45, 24:18)
  • “If you are living on the edge, you can’t handle a $5,000 emergency if it comes up...The last thing you want is for small emergencies to become a huge deal in your life.” — Andrew (24:37)

• Housing Stress

  • A third of older households are “cost burdened”—spending 30% or more of their income on housing (16:40)
  • Listeners advised to track total home costs and aim for <30% of income (25:27)

• Health Risks

  • Health and longevity can suffer for cash-strapped retirees, as even basic health care might become unaffordable (17:58, 26:08)
  • “What if you don’t have enough money to cover doctor costs...That is not a thriving life.” — Andrew (26:08)

• No Inheritance or Generational Impact

  • Constant financial struggle makes it impossible to help the next generation build wealth (27:13)

4. Supplemental Income and Support

• Working During Retirement

  • 1 in 5 retirees over 60 are still in the workforce, most in part-time roles (20:44)
  • Benefits include extra income, purpose, and mental sharpness
  • Retirees often turn to consulting, part-time jobs related to interests, or even side hustles

• Government and Family Support

  • Many turn to Medicare, Medicaid, SNAP, senior discounts, or family assistance
  • Relying on other people or services comes with its own risks and trade-offs

5. Personal Finance Action Plan

For Those Approaching or Behind on Retirement Savings (33:15)

• Step 1: Get Brutally Honest About Your Numbers

  • Track actual annual spending
  • Use the “Rule of 25”: annual spending x 25 = target nest egg

• Step 2: Calculate Your Retirement Gap

  • Subtract expected Social Security and pension income from your annual needs; invest enough to fill the gap

• Step 3: Maximize Savings & Flexibility

  • Accelerate your savings rate
  • Find ways to increase income, cut expenses, and consider part-time work, especially in your 60s

For Younger Listeners

• Invest Early and Often

  • Contribute to retirement accounts: HSA, Roth IRA, 401(k), and taxable brokerage (36:17)
  • “Investing your money is the only way to live a retirement life that is worth living.” — Andrew (33:34)

• Build Your Emergency Fund

  • Use the 1-3-6 method: 1 month, then 3 months, then 6 months of expenses set aside, and eventually more as you approach retirement

• Track Your Retirement Number Annually

  • Adjust your plan as your income and circumstances change

• Grow Your Savings Rate

  • Push past the 20% threshold as income grows

Notable Quotes & Memorable Moments

• “You're depending on something that is completely outside of your control. You have zero control whatsoever on how much of this you are getting.” (10:51)
• “The number one thing we want to have with our money is we want to have control over our decisions and flexibility.” (11:25)
• “Nobody wakes up and says, ‘Hey, when I get to retirement, I want to live paycheck to paycheck.’” (24:38)
• “A wise person leaves an inheritance to their children.” (27:13)
• “You do not want to go into retirement with debt because it reduces your flexibility.” (15:10)
• “The time is now for you to be able to make the change, to make the shift. And I want to see that from every single one of you.” (38:04)

Important Timestamps

• [05:28] — Statistics on how many Americans retire with little/no savings
• [10:00] — Claiming Social Security: ages and trade-offs
• [13:53] — Importance of being debt-free and home ownership in retirement
• [15:28] — Retirement spending patterns and why median is more accurate
• [20:44] — Working in retirement: prevalence and benefits
• [24:18] — Key trade-offs: financial fragility, housing, health, and generational impact
• [33:15] — Playbook for getting back on track if you’re behind
• [36:17] — Investing, emergency funds, and retirement tracking for young listeners

Andrew’s Closing Advice

Andrew stresses that while millions are getting by on modest incomes in retirement—often with little or no savings—this should serve as a cautionary tale, not a blueprint. He encourages listeners to take proactive steps now: eliminate debt, invest regularly, build emergency funds, and track their goals. Above all, Andrew reminds listeners that it’s never too late to improve their financial future, and that building wealth is about flexibility, security, and the ability to enjoy life both now and in retirement.