A boomer living on $1,601 a month from Social Security and struggling to pay bills, plans to wait a few more years until she hits her 401(k).

• Maureen, a retired teacher, struggles to get by on a $1,601 monthly Social Security check.

• She has a 401(k) retirement fund, but she hasn’t tapped into it yet because she’s afraid it won’t last her life.

• Many baby boomers face similar challenges, with more than half having $250,000 or less in retirement assets.

Maureen used to have a tradition with her third-grade class. Every year, she and her students would read Patricia Polacco’s “The Keeping Quilt” and spend the afternoon working on a craft that had a theme from the story. The students decorated their own pieces of fabric — and Maureen sewed them together. She kept each quilt long after each class had graduated.

The 66-year-old taught at a primary and secondary school for over forty years.

“It didn’t pay very much, but it was a great job,” she told Business Insider. “I was very blessed to have it.”

Maureen — who chose to use her first name to protect her privacy — lost her teaching job in 2020 when the Catholic school where she worked closed because its funding ran out. She felt “overwhelmed,” she said.

Maureen now lives on $1,601 in monthly Social Security payments in northeastern Pennsylvania, according to bank records seen by BI. She lives from check to check and struggles to pay bills. And despite being just months away from the federal retirement age of 67, she’s wondering whether she should look for a new job.

She estimates she has $180,000 in the 401(k) account she’s built up over her long career, which she estimates will be worth about $144,000 when it’s taxed upon withdrawal. She could use the money now, but she hasn’t spent any of it because she’s worried about whether she’ll use it for the rest of her life.

Americans like Maureen face tough choices for retirement. For some, strong savings and smart investments mean they have the $1.5 million-plus that Northwestern Mutual found most Americans need to retire comfortably. For others, steady Social Security income isn’t enough to cover their basic needs.

The story continues

More than half of baby boomers have $250,000 or less in retirement assets, according to a 2024 report from the Pension Income InstituteIt leaves many seniors wondering when the right time is to start using their savings or benefits, and whether the wealth they have built up will be enough to live on.

“I’m trying to postpone it,” Maureen said of her 401(k) savings. “I think, If I use it now, what if I live to be 90? I’m going to be in trouble.”

Maureen is struggling to make ends meet, but she’s “afraid” to use her 401(k) savings

Maureen feels like she has struggled with money for most of her adult life. Her husband died unexpectedly 22 years ago, leaving her the sole breadwinner for her two young daughters.

Although she said her teaching salary was often around $42,000 a year, Maureen often had to work two or three part-time tutoring jobs each summer to make ends meet. It saddened her to spend less time with her children as they grew up, but she had to put food on the table, she said.

Maureen has received other benefits and income over the years, but nothing stable.

Her husband’s Social Security money went mostly to her daughters when they were young, she said, but she recently learned his employer is closing their retirement system. Maureen expects to receive a small amount, but not enough to make a big difference in bills.

She doesn’t have her own teacher pension because her private school stopped offering pensions in the 1990s in favor of a 401(k), she said. And she only received about a year of unemployment benefits during the pandemic.

With $1,601 monthly Social Security as her only source of reliable income, Maureen is on a tight budget. And her list of expenses feels long: cell phone, Wi-Fi, Medicare, car, gas, and unexpected house or medical bills.

She and her husband bought their home in the 1980s and the mortgage is paid off. However, Maureen said paying utilities and insurance on the house is expensive.

Her electric bill can be $500 or more each month, she said. She tries to keep her heat below 55 or 60 degrees, even in Pennsylvania’s frigid winters.

For food, Maureen said, she gets $23 a month from SNAP — which doesn’t go very far. She often makes soups in large batches that she can eat for several days, and buys things like pasta and tomato sauce in bulk when they’re on sale.

She doesn’t tell most people in her life that she receives any form of government assistance. Her finances can feel lonely: she often has to turn down concerts and restaurant dinners with friends because she can’t afford them.

Although Maureen knows she needs money, she is “afraid” to touch her 401(k) account. She plans to wait a few more years before touching her savings, around the time she turns 70.

“Unless I have to do it sooner,” she said, “and I may have to.”

Are you living on a fixed income during retirement? Do you experience stigma or loneliness as a result of receiving government assistance? If you are open to sharing your story, please reach out [email protected].

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