A retiree says $1,620 monthly Social Security isn't enough to live on, but she's worried about draining her savings too early

• Elizabeth McCoy, 61, struggles financially and worries Social Security won't be enough in retirement.
• Medical bills depleted her savings. She and her husband may have to use their 401(k) earlier than planned.
• Many Americans face retirement woes, lacking adequate savings and relying on Social Security.

Elizabeth McCoy constantly thinks about money. The 61-year-old and her husband are struggling to make ends meet in central Indiana, and she said Social Security checks won't be enough to live on as they age.

McCoy said she began receiving monthly Social Security Disability checks about 10 years ago, which are currently $1,620. After a decades-long career in the retail and real estate industries, she hoped she would feel more comfortable in retirement.

She expects her SSDI payments will increase by a couple hundred dollars each month once she turns 62 — when she becomes eligible for traditional Social Security — but her budget will be tight. Her husband will also start collecting Social Security once he retires from his full-time job at a home improvement store, she said, although that may not happen anytime soon. To keep the couple financially afloat, he will have to "work until he just can't," McCoy said.

Despite their best savings efforts, McCoy said medical bills and a high cost of living depleted her household finances. She's worried she'll need to dip into the couple's 401(k) account early — running the risk that they outlive what's in the bank.

"We're doing the best," she said. "But to live on Social Security — which is coming very quickly for both of us — is scary."

Americans like McCoy are facing major financial decisions in their golden years: how much to save, how much to spend, and whether their income will be enough to pay their bills. A fifth of US adults over 50 reported having no retirement savings, and Social Security often isn't enough to cover the full cost of essentials. Business Insider has heard from over 1,000 baby boomers grappling with similar retirement challenges.

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McCoy said unexpected medical bills derailed her retirement savings

McCoy said her expenses — housing, groceries, utilities, medical care, and more — can feel "frightening." She does some part-time graphic design work, but her monthly income must stay below $1,550 to qualify for SSDI. And, once she and her husband both fully retire, she estimates they will be living on less than $3,000 a month from Social Security — an amount that is slightly above the federal poverty line, and too high for most forms of government assistance.

The mortgage on McCoy's Indiana home is one of her top expenses, and she said she will be paying it off "until we're old-old." Her 26-year-old son also lives in the house, she said. He has a full-time job, but local rent is expensive and McCoy said she wants to help him save money. Living with parents is increasingly common for early-career Gen Zers contending with skyrocketing rent prices.

Although McCoy said she and her husband have shared 401(k) funds — housed in her husband's account — she is hesitant to use the money too early. They worked hard to ensure they would be financially comfortable in her golden years, and McCoy hoped she wouldn't have to open their 401(k) until well into retirement.

Medical bills derailed that plan. McCoy said unexpected surgeries and hospital care for herself and her husband depleted their wealth. The couple has some insurance through her husband's job, but out-of-pocket costs are steep, McCoy said. Without dipping into her 401(k), she's worried future medical bills could bankrupt her.

"A really great life financially can quickly go away," she said. "And then you find yourself in your 60s, and you're scrambling to get savings back."

McCoy added that her limited budget has taken a toll on her social life. Friends and neighbors often want to gather for meals at restaurants, an activity McCoy said she can't afford. It feels lonely, she said.

For hopeful retirees, McCoy advised building a robust wealth portfolio in cash and investments. She wishes she had been frugal with her spending when she was young, and she said others should consider saving money in Roth IRA accounts, mutual funds, and CDs, alongside a 401(k).

"My biggest advice to anybody is to be careful and be mindful that things can happen to you," she said. "Life can be tough, and you've got to be prepared."

Are you an older adult struggling with finances in retirement? Are you open to sharing your experience with parenting, savings, or your career? Reach out to this reporter at allisonkelly@businessinsider.com.