Personal Finance

I'm Struggling to Pay My Bills on Social Security Alone. Should I Un-Retire?

Maurie Backman

Published: January 26, 2025 2:15 pm

The average retired worker today collects $1,976 a month from Social Security. That amounts to just under $24,000 on an annual basis. But given the way inflation has driven living costs upward in recent years, it’s not surprising that a lot of seniors who are living on Social Security alone are struggling.

If that’s the situation you’re in, you may be wondering if it’s time to undo your retirement and re-enter the labor force. And that may be an option worth considering. But there may also be other avenues you can explore if you’re not too thrilled about the idea of returning to work.

A tough routine to go back to

Even if you’re retired now, you probably remember what it was like to return from a relaxing vacation only to have the stress of a job to jump into right away? Well, if you un-retire, that’s probably what you’re looking at, only to a far more extreme degree.

Going back to work after retiring could do good things for your finances. But it could also do some seriously bad things to your mental and physical health.

And that assumes you’ll even have the option to go back to work. If you’re older and have been out of the labor force for quite some time, you can’t assume you’ll be welcomed back with open arms.

As it is, workers are often sneakily pushed out of their jobs when they’re perceived to be nearing retirement age. If you’re already retired and are making a clear return to work after a notable break, you might struggle to get hired.

Other options to look at

It’s natural to find that money is tight when you’re living on Social Security alone. But there may be steps you can take to improve your financial circumstances without having to un-retire.

First, you could pick up part-time gig work instead of going back into the labor force on a full-time basis. You may find that the flexibility of the gig economy makes for an easier adjustment.

Another option could be to downsize out of your home if it’s a property you have a decent amount of equity in.

Say you own a $250,000 home outright. If you sell it and replace it with a $150,000 property (which may be doable in some parts of the country, especially if you don’t require much square footage), you can save the difference and use that money as supplemental retirement income. Better yet, you can work with a financial advisor to invest that money so it generates some growth.

If downsizing isn’t an option but you have extra space at home, you could see about renting out part of your home, whether it’s a spare room or a finished basement. You may even be able to rent out parts of your home temporarily and individually, like your driveway or swimming pool.

Of course, you may decide that you miss working and would rather return to a full-time job than continue to be retired. If that’s the case, doing so could give you a prime opportunity to build some savings and increase your income once you retire again. But if that’s not something you’re eager to do, know that going back to work full-time isn’t your only choice if you’re having a hard time getting by on Social Security alone.