Losing your job just a few years shy of retirement can be both financially and emotionally overwhelming. For someone who’s 61 years old, with $103,000 in savings and a mortgage still on the books, the big question becomes: How can I stretch my resources until Social Security kicks in at 67?
It’s not an easy situation, but with thoughtful planning and some strategic moves, it’s possible to make that money last and bridge the gap without depleting everything.
1. Take a Deep Dive Into Your Budget
The first step is to take a clear-eyed look at your current spending. Eliminate non-essential expenses and prioritize housing, food, healthcare, and transportation. You may also want to explore refinancing your mortgage if it lowers your monthly payment — or consider downsizing to reduce your housing costs altogether.
Creating a lean but realistic monthly budget can help stretch your $103K much further than you might expect.
2. Explore Part-Time or Flexible Work
Even though you’ve been laid off, finding part-time or freelance work could help reduce the need to withdraw from savings too quickly. Consider jobs that match your skillset or passions — such as consulting, tutoring, or gig economy roles — that don’t require the stress of a full-time commitment but still bring in income.
Even earning $1,000 to $2,000 a month could significantly reduce how much you need to draw from your savings.
3. Delay Drawing Social Security If Possible
While you technically can begin collecting Social Security at 62, delaying until 67 (or even 70) can significantly increase your monthly benefit. Each year you wait adds roughly 8% to your benefit amount — which can make a big difference over time.
If you can live off savings and any side income for a few years, you’ll be rewarded with higher monthly checks later on.
4. Tap Savings Strategically
Rather than pulling a large lump sum from your savings, consider drawing just enough each month to cover essential shortfalls. Treat your $103,000 like a bridge — its purpose is to carry you from now until Social Security begins.
Keep a portion in a high-yield savings account or short-term CD for easy access, and the rest in conservative investments that can offer modest growth while minimizing risk.
5. Don’t Overlook Assistance Programs
You may qualify for government programs or community resources that can help ease the burden. Look into state health insurance options, food assistance, and utility relief programs. Reducing out-of-pocket costs wherever possible can preserve your nest egg longer.
6. Consult a Financial Advisor
A financial professional can help you map out a personalized plan, including how to draw down savings in the most tax-efficient way. They can also assess whether converting part of your savings to an annuity or using a portion for structured income makes sense in your situation.
Getting laid off at 61 with limited savings and an ongoing mortgage is undeniably tough — but it’s not a dead end. With smart budgeting, part-time income, careful withdrawals, and a delay in claiming Social Security, you can make your money work for you over the next several years.
This chapter may look different than what you imagined, but with a few strategic adjustments, it’s still possible to maintain financial stability and move into retirement with confidence.
