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Losing your job at age 60 is difficult enough. Losing it when you've saved practically nothing for retirement can turn the next few years into a financial scramble.

Consider George, a single man from Little Rock, Ark., who found himself in that position after losing his job in a company restructuring. At 60, he was still two years away from being eligible to claim Social Security and five years away from Medicare eligibility — with little retirement savings to fall back on.

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George's situation may be extreme, but he's far from alone. According to a 2024 AARP survey, 1 in 5 Americans aged 50 and older have no retirement savings, while 61% worry they won't have enough money to support themselves later in life (1).

Social Security alone may not provide much breathing room, either. The Social Security Administration estimates the average retired worker received about $2,086 per month in July 2026 (2). And that's an average: Someone who begins collecting benefits as soon as they become eligible at 62 can receive substantially less than they would by waiting until full retirement age or beyond.

For someone like George, then, the challenge isn't simply figuring out how to retire with less. It's finding a way to financially bridge the next several years without making decisions today that could leave him with even less income later.

That means looking at every part of the budget: replacing lost income where possible, keeping healthcare covered until Medicare begins, making limited savings work harder, cutting unnecessary expenses and taking advantage of benefits available to older Americans.

There's no quick fix for reaching 60 without a substantial nest egg. But there are still moves that can give someone in George's position more options, starting with one expense that can become especially urgent after a layoff: health insurance.

Plan for health coverage before Medicare

If you lose employer-sponsored health insurance at 60, you'll probably need to account for how you'll stay covered until you become eligible for Medicare. And once Medicare eligibility approaches, you'll have another set of coverage decisions to make.