When You're 60 With No Retirement Savings: Focus on Income First

The reality is stark: according to recent GOBankingRates research, nearly one in three Americans have zero retirement savings, and the situation becomes even more urgent for those aged 55 to 64, where one in four face retirement with nothing set aside. If you’re 60 years old with no retirement savings, the conventional wisdom might tell you to start cutting expenses and maximizing savings. But financial expert Dave Ramsey challenges this thinking entirely. His real advice? The problem isn’t what you haven’t saved — it’s what you’re not earning.

The Real Problem Isn’t Lack of Savings — It’s Lack of Income

Dave Ramsey received a call on “The Ramsey Show” from Jenny, a 61-year-old woman from Idaho who embodied this challenge perfectly. Divorced and living in affordable housing, Jenny was working 25 hours weekly as a cashier and had $22,000 in the bank from a home sale — but nothing earmarked for retirement.

Rather than focus on ways to stretch her meager savings, Ramsey immediately identified the core issue: her income was the bottleneck. He explained that with only part-time cashier wages coming in, no amount of penny-pinching would solve her financial crisis. But here’s where his perspective shifted everything: if Jenny were earning $50,000 annually instead of her current low-income wage, the entire financial picture would transform.

To illustrate his point, Ramsey used a powerful hypothetical: imagine Jenny bringing in $4,000 monthly at age 61 with $22,000 in the bank. “All of a sudden, everything changes,” he emphasized. The psychological relief alone — knowing there’s sufficient monthly income to cover expenses and potentially build savings — eliminates the fear and stress that plague most people facing retirement underprepared. The math is simple: an income problem, not a savings problem, is what she needed to solve first.

Jenny’s Story: Why Traditional Solutions Fall Short

Jenny’s situation illustrated why the usual retirement playbook doesn’t work for everyone. She couldn’t pursue physically demanding work due to knee problems, and without a college degree, accessing higher-paying traditional employment seemed impossible. She appeared trapped by her circumstances.

Yet this is precisely where Ramsey’s unconventional thinking proved valuable. Rather than accepting her limitations, he reframed the challenge as an opportunity to pursue self-employment — work where she could control both her hours and earning potential. “The goal is to get your income rocking,” Ramsey told her. “It might be self-employed work because that way, you control it rather than just looking for a job.”

From Garage Sales to $100K: Building Income in Your 60s

Ramsey’s recommendation was surprisingly accessible: reselling items on eBay and Facebook Marketplace. For someone like Jenny with physical limitations but resourcefulness, this could be transformative. The numbers tell the story: buying merchandise at garage sales for minimal amounts and reselling them at significant markups is genuinely feasible. A chair purchased for $2 could sell for $50 on eBay. Done strategically and consistently, this side business model could generate $25 to $30 per hour — far exceeding her cashier wage.

What makes this approach powerful isn’t just the income potential of $100,000 annually that Ramsey mentioned. It’s that this work is largely within Jenny’s physical capabilities, requires minimal startup capital, and provides flexibility. She could work 40 to 50 hours weekly on her own schedule, building something toward retirement security rather than remaining stuck in financial precarity.

The Bigger Picture: Why This Matters for Everyone 60 and Older With Limited Savings

The lesson extends far beyond Jenny’s story. If you’re approaching or in your 60s with no retirement savings, the solution requires honest assessment: are you facing an income problem or a spending problem? For most people in this situation, it’s income.

The implications are profound. A modest increase in earning capacity can accelerate your path to financial stability more dramatically than years of careful budgeting. When you control your income — whether through self-employment, side ventures, or career pivots — you’re no longer passive. You’re actively building the security you need.

Ramsey’s advice isn’t about false optimism or magical thinking. It’s grounded in simple arithmetic: more money coming in directly addresses the root cause of retirement anxiety. Whether through reselling, consulting in your field, freelancing, or other unconventional work, the principle remains the same.

Your Starting Point: Building Financial Security at 60+

If this describes your situation, the path forward begins with an honest income assessment. What skills do you have? What work could you realistically do 40 to 50 hours weekly? What income target would meaningfully change your financial trajectory?

The beauty of focusing on income rather than just cutting expenses is that it’s empowering. You’re not restricting your life further — you’re expanding your earning potential. For those 60 years old with no retirement savings, this income-first approach may be the most practical and psychologically sustainable path forward. The time to start is now.