'I have no financial safety net': I'm 66, rely on Social Security and have just $500 in savings. What hope do I have?

By Quentin Fottrell

'In the wake of the midterm elections, how many Americans are living in poverty?'

"I would venture to guess that they far outnumber those who have managed to accumulate $100,000 in retirement savings." (Photo subject is a model.)

Dear Quentin,

I am a 66-year-old woman. As of today, I have a total of $500 (or less) across my checking, second checking and savings accounts. I receive $2,000 a month in Social Security and live in a two-bedroom apartment with a roommate who is receiving disability benefits.

In the wake of the midterm elections, how many people in this country are living in poverty or just barely above the poverty line? I would venture to guess that they far outnumber those who have managed to accumulate $100,000 in retirement savings.

And yet, we hear so much anxiety, frustration and complaining from those who have managed to save that amount of money. I understand that everyone has financial concerns, and I don't mean to minimize their worries.

'I wonder whether wealthier Americans should trade places with people like me.'

But sometimes I wonder whether wealthier Americans should trade places with people like me - people like us - even for a little while, to understand what financial insecurity really looks like. Let me use my own circumstances as an example.

I am a nurse, although I am not working at the moment because I earned "too much" last year and am concerned about how that might affect my Social Security benefits. Although I am looking forward to turning 67, I also find myself worrying about the future.

What happens when I am no longer physically able to work as a nurse? The frightening truth is that I have no clear idea where I will go or what I will do when I can no longer care for myself. I have no financial safety net, no substantial savings and no real financial cushion.

Don't miss: 'I experienced many years of poverty': I worked until 70. Why do wealthy retirees look down on those with less savings?

The conversation about poor Americans

And that brings me to my larger question: Where is the conversation about people like me? Where is the discussion about those living on limited incomes, those in poverty and those who are struggling just to make ends meet today?

What happens to the millions of people who have little or nothing saved for retirement? What happens when Social Security isn't enough to cover basic living expenses, when working is no longer physically possible and when there is no savings account, pension or family safety net?

We hear plenty about the worries of people who have managed to put money away for retirement. Those concerns are legitimate, and I don't begrudge anyone the security they have worked hard to build.

'Many of us are worried about how we will survive. What are we supposed to do?'

What about those of us who are already struggling? What about the people who aren't worried about whether their retirement savings will last 20 or 30 years because they never had the opportunity to save in the first place?

We are not simply worried about maintaining our standard of living in retirement. Many of us are worried about how we will survive. What are we supposed to do when our bodies fail and we can no longer work, our Social Security checks aren't enough and we have nowhere to turn?

Where are we supposed to go? What politician is speaking up for us? It's time this part of the retirement conversation received the attention it deserves. Financial insecurity in old age isn't just a concern for people who haven't saved enough. For many of us, it is our reality.

Living on the Poverty Line

Related: 'Poverty doesn't have to be my reality': I thought I'd have to rely on Social Security. Then I taught myself how to invest.

You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.

There were 34.5 million people living in poverty last year, which equates to just over 10% of the U.S. population.

Dear Living,

Amid the shifting political sands, there are no easy answers to your questions.

It takes not a small amount of courage and emotional strength to get up every morning and do it all over again when you are living paycheck to paycheck, with a job that requires substantial physical and emotional labor, and when you are also reliant on Social Security.

You work when you can, you have a tenant/flatmate, and you keep your costs low and strive to cover your necessities with your Social Security checks. But I understand why you are concerned about your health and mobility as you age.

There were 34.5 million Americans living in poverty last year, which equates to just over 10% of the U.S. population. Between 2024 and 2025, rates for the supplemental poverty measures increased for those without a high-school diploma but did not increase significantly for other groups.

The richest 1% of households average more than 100 times the income of the bottom 20%. Social Security accounts for about half of the income for the typical older adult, according to a recent report from the National Institute on Retirement Security.

Roughly 47% of Americans say they have less than $100,000 saved for retirement.

Compare that to 53% of Americans age 25 and older who say they have at least $100,000 saved for retirement, while 47% say they have less than $100,000 saved for retirement, according to a report by the National Institute on Retirement Security.

The report also gives the following breakdown that speaks to your life: 18% of those surveyed said they had no retirement savings at all. It does not address the fact that millions of retirees - 28%, according to the U.S. Census Bureau - rely solely on Social Security.

The authors of the study, "Retirement Security in 2026," said Americans, like you, want policymakers to pay greater attention to the issue. In fact, 84% of respondents in a poll said leaders in Washington do not understand the retirement-savings challenges facing Americans.

Medicare does not provide long-term care, and it doesn't cover help with daily activities when people can no longer live on their own. Medicaid does cover some of those services, but eligibility requirements vary by state and by circumstances.

Don't miss: We're living in 'end times' when you can't retire on $1 million

The focus on middle-class Americans

But what if you have no IRA or 401(k) to convert? Section 8 housing, Medicaid, Medicare and SNAP food stamps have strict requirements. Social Security and your local Area Agency on Aging form part of the security net for people who risk falling below the poverty line.

If you're under the full retirement age for all of 2026, you can earn $24,480 before Social Security withholds benefits. In the year you reach FRA, that limit rises to $65,160, but only earnings before the month you reach FRA count. Starting with that month, there's no earnings limit.

Politicians on both sides of the aisle talk about affordability, inflation, gas and home prices, and other issues affecting people's quality of life - but their speeches arguably are aimed at the middle class, seen as a visible and vast voting bloc, rather than those living on the poverty line.

One theory: There's no unanimous definition of who belongs to the middle class. It used to be that a college education, a median income and homeownership were enough. But these days, many young college-educated Americans are renting or living in their parents' home.

Political candidates speak to the middle class, regarded as a visible and vast voting bloc.

In this analysis published shortly before the midterms, Michael Tanner of the Foundation for Research on Equal Opportunity wrote that, beyond the hot-ticket issues of the day - which he named as tariffs, gas prices, immigration and data centers - rural America is hurting.

He wrote that this goes beyond material deprivation: "There is a miasma of hopelessness and despair that hangs over many rural communities. Deaths of despair - death from suicide, drug abuse and alcohol-related liver disease - are disproportionately high in rural America."

"Stress-related deaths are also higher in rural areas," he added. "Indeed, overall, rural life expectancies are lower than for urban areas. Rates of smoking, obesity and chronic conditions such as high blood pressure are higher in rural communities."

Those with the most - high-paying jobs, social status, homes and retirement savings - often have the loudest voices, and the conversation around retirement largely revolves around managing those assets, from dollar-cost averaging to Roth conversions.

What if you don't have a portfolio to convert? Your letter hits that bullseye.

Related: 'Poor people are not stupid': I grew up in poverty, earned $14 an hour, and inherited $150,000. Here's what I have learned from my windfall.

By emailing your questions to The Moneyist or posting your dilemmas on The Moneyist Facebook group, you agree to have them published anonymously on MarketWatch.

More columns from Quentin Fottrell:

'Just watch Judge Judy': I'm in my 70s. Why do people keep making the same avoidable financial mistakes?

'I grew up poor': My wife and I have a $1.2 million real-estate portfolio, and $225,000 in income. Are we financially secure enough to start a family?

My father-in-law, 81, sold his $75,000 home to pay his daughter's $50,000 debt. How can I keep him from becoming destitute?

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-Quentin Fottrell

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