topic Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs in Community Chat

Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

Mindy D — Tue, 14 Jan 2020 19:51:28 GMT

Summarized, condensed from “Half of single seniors can’t pay for the basics. Here’s why Social Security is not enough” by Lories Konish. Jan. 13, 2020. CNBC

“The report estimates that 50% of adults age 65 and older who live alone, and 23% who live in two-elder households don’t have enough money to cover their basic needs.

Those individuals have incomes that are below a measure the researchers have developed called the Elder Index.” “But there is no county in the U.S. where the average cost of living and the average Social Security benefit are equal, which makes it harder for retirees to break even.”

The Elder Index measures basic costs for households and how well older persons are able to meet these expenses. Recent research from the University of Massachusetts found that older Americans don’t have enough money to get by. The Index measures food, housing, health care, transportation, and other necessities. It does not include entertainment, dining out, and vacations. For those with a mortgage, a single person needs $21,012 and for couples $31,800. For renters, singles need $25,416 and couples, $36,204. For those with mortgages, singles need $32,064 and couples $42,852. The research found that 4 in 10 older singles in each state might not be able to afford basic needs. Massachusetts, New York and Vermont are the state’s where the older Americans are most likely to not be able to afford basic expenses. Nevada, Alaska and Utah are most affordable. For two person households Vermont, New York and Massachusetts are least affordable and Washington D.C., Alaska and Utah are most affordable. More than half of older adults loving below the Elderly Index rely on Social Security for at least 90% of their income. Average Social Security benefits go farther in some counties than in others. For example, in San Francisco County, there is a $27,000 shortfall while in Wyoming County West Virginia the cost of living falls short by around $2000 a year. For the average person, there is no American county where benefits are equivalent to costs.

Deleted Link because of political side bars

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

Carmie — Tue, 14 Jan 2020 17:20:41 GMT

That is very true. A lot of Seniors are on some type of public help. They live in subsidized housing, get " food stamps" and paid healthcare. There are many programs to help out Seniors who receive money well below the poverty line.

SS was never meant to be the only source of income for seniors. But, it is.

Some people put money aside and saved for retirement, but because of inflation, it was not enough. Some people blew through their savings. Many people had no savings.

Many have no pensions.

Today, we see many older folks who are still working, not because they want to, but because they have to.

Often, real estate taxes spend down retirement income. More people than you think have lost their homes because they cannot afford the taxes.

We need some change and more people need to prepare for their senior years and not live for the here and now. Old age is coming faster than they think.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

Peaches McPhee — Tue, 14 Jan 2020 17:22:33 GMT

This is one of those things that did not turn out the way it was intended. When Social Security started it was meant to be a supplement to your retirement, not the only income. It did not turn out that way, as more and more people live only on their retirement, with no savings or pension. Pensions have phased out for the most part, and people either do not save or are unable to save during their "earning years". Raising the SS amount will not solve that problem. It is a terrible thing - I know of people who are living on less than $1000 a month. Some are in subsidized housing, some are in a home that is falling down around them.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

JaneMarple — Tue, 14 Jan 2020 17:27:42 GMT

Another subject brought up annually that doesn't end well. The ones who have vs the ones who don't.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

phoenixbrd — Tue, 14 Jan 2020 17:34:18 GMT

I have always thought that there should be a high school course in financial preparation 101. Social security is not a living wage and was never meant to be. Preparation for retirement years should begin your first job. If possible, seek jobs that provide pensions. This is a result of not educating our children.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

feline groovy — Tue, 14 Jan 2020 17:34:31 GMT

It's not just anyone age 65 and older.

This also applies to everyone age 18 and over whose only income is Social Security Disability (SSDI).

People either don't realize or often forget this.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

CrazyDaisy — Tue, 14 Jan 2020 17:36:54 GMT

@JaneMarple wrote:
Another subject brought up annually that doesn't end well. The ones who have vs the ones who don't.

Exactly, some have no idea how the other half live. Lots of advise on what they did wrong.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

Mz iMac — Tue, 14 Jan 2020 17:37:59 GMT

@feline groovy wrote:
It's not just anyone age 65 and older.
This also applies to everyone age 18 and over whose only income is Social Security Disability (SSDI).
People either don't realize or often forget this.

Also, Supplemental Security Income (SSI).

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

JaneMarple — Tue, 14 Jan 2020 17:43:24 GMT

@CrazyDaisy wrote:
@JaneMarple wrote:
Another subject brought up annually that doesn't end well. The ones who have vs the ones who don't.
Exactly, some have no idea how the other half live. Lots of advise on what they did wrong.

So true, I cringe when I've read through the years how well they've saved and it's implied that the ones who haven't are'nt as smart as they were.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

esmerelda — Tue, 14 Jan 2020 17:54:10 GMT

This reminds me of an old thread about poverty.

Who among those in need have have a better-than-basic cell phone that thry pay for? How many have some kind of pay TV service that they pay for?

Yes, IIRC SS was presented as all one would need. Not so. Best to save all you can, because as someone with lots told me, you don't know how long you'll need it.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

Krimpette — Tue, 14 Jan 2020 18:02:12 GMT

All this is so true. I'm eternally grateful for a father who instilled save, save, save to me at an early age. I think he feared that social security would no longer be available by the time I needed it. Thanks, Dad!

I exercise at a senior center. Fortunately, they offer a lot of programs for those in need. Some folks arrive when the center opens in the morning and stay until late afternoon. They have a lunch program that has a minimal cost....if you can afford it. If not, you won't go hungry.

With so much wealth in this country, it's a real shame.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

ALRATIBA — Tue, 14 Jan 2020 18:03:16 GMT

Social Security was never intended to be the sole source of income ... it's part of the "three legged stool" ..... pension / savings / social security.

We learned that back in high school (1950s) - and from our families who grew up during The Depression.

Among my friends - no one is hurting financially. None of us are wealthy but we are all comfortable in our retirement. We planned ahead.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

donovan — Tue, 14 Jan 2020 18:08:10 GMT

This is why I have added The Department of Aging to my list of organizations that I donate to.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

BlueFinch — Tue, 14 Jan 2020 18:08:48 GMT

Sadly, many actually have saved and only expected SS to pay some incidental bills. Then the unexpected happens. An individual, or their spouse may wind up in a nursing home, assisted living, or prolonged rehabilitation facility and burn through hundreds of thousands of dollars. 50 to 100K per year doesn't take long to wipe someone out.

Unless you have long term care insurance, Medicare doesn't pay for this type of extended placement. You can apply for Medicaid, but only after you have exhausted ALL of your own funds.

I know, I had POA for my mom and the cost of the last three years of her life was astronomical. It was good she could fund her own care, though. It enabled me to provide the quality she deserved, without such placements. If on Medicaid, not so much.

So, many do save, but they can be wiped out overnight. This is particularly terrible for a widow, or widower left alone, with limited funds for themselves.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

CrazyDaisy — Tue, 14 Jan 2020 18:11:34 GMT

@ALRATIBA wrote:
Social Security was never intended to be the sole source of income ... it's part of the "three legged stool" ..... pension / savings / social security.

We learned that back in high school (1950s) - and from our families who grew up during The Depression.

Among my friends - no one is hurting financially. None of us are wealthy but we are all comfortable in our retirement. We planned ahead.

You realize in the "real world" pensions basically no longer exist and a medical crisis can and will destroy any and all savings that you may have been lucky to accumulate. So rather than patting yourself on the back perhaps you should be grateful for what you have.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

CelticCrafter — Tue, 14 Jan 2020 18:19:17 GMT

@CrazyDaisy wrote:
@ALRATIBA wrote:
Social Security was never intended to be the sole source of income ... it's part of the "three legged stool" ..... pension / savings / social security.

We learned that back in high school (1950s) - and from our families who grew up during The Depression.

Among my friends - no one is hurting financially. None of us are wealthy but we are all comfortable in our retirement. We planned ahead.
You realize in the "real world" pensions basically no longer exist and a medical crisis can and will destroy any and all savings that you may have been lucky to accumulate. So rather than patting yourself on the back perhaps you should be grateful for what you have.

@CrazyDaisy that's true, a lot of places have gone to employer matched (up to a certain percentage) 401k plans. Once you run out of $ in your 401k that's it.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

ahoymate — Tue, 14 Jan 2020 18:22:21 GMT

This isn't a new topic! We've heard about this a long time! Why bring it up again? Just read the news today, there is always discussions, reports etc. about this.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

CrazyDaisy — Tue, 14 Jan 2020 18:27:58 GMT

@CelticCrafter wrote:
@CrazyDaisy wrote:
@ALRATIBA wrote:
Social Security was never intended to be the sole source of income ... it's part of the "three legged stool" ..... pension / savings / social security.

We learned that back in high school (1950s) - and from our families who grew up during The Depression.

Among my friends - no one is hurting financially. None of us are wealthy but we are all comfortable in our retirement. We planned ahead.
You realize in the "real world" pensions basically no longer exist and a medical crisis can and will destroy any and all savings that you may have been lucky to accumulate. So rather than patting yourself on the back perhaps you should be grateful for what you have.
@CrazyDaisy that's true, a lot of places have gone to employer matched (up to a certain percentage) 401k plans. Once you run out of $ in your 401k that's it.

Some small companies and family businesses do not even offer 401K programs, have become to expensive. 401K plans are also difficult to move around (lose value with constant sale and rebuy), most young people do not plan on staying at one job for long periods of time.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

suzyQ3 — Tue, 14 Jan 2020 18:24:24 GMT

@ahoymate wrote:
This isn't a new topic! We've heard about this a long time! Why bring it up again? Just read the news today, there is always discussions, reports etc. about this.

@ahoymate, first of all, the OP posted a current article on the subject. Second of all, this topic is worthy of occasional discussion.

Re: Half of seniors can not afford the basics; don’t have enough money to get by, cover basic needs

Cakers3 — Tue, 14 Jan 2020 18:32:51 GMT

@suzyQ3 wrote:
@ahoymate wrote:
This isn't a new topic! We've heard about this a long time! Why bring it up again? Just read the news today, there is always discussions, reports etc. about this.
@ahoymate, first of all, the OP posted a current article on the subject. Second of all, this topic is worthy of occasional discussion.

@suzyQ3 ^ THIS

The problem of poverty, be it senior, the disabled, or any person struggling to stay afloat is ALWAYS not only an important discussion but one of humanity, too.