Community Chat

[Mindy D]

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 

[Carmie]

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.

[Peaches McPhee]

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.  

[JaneMarple]

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

[phoenixbrd]

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.

[feline groovy]

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.

[CrazyDaisy]

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@JaneMarple wrote:

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

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

[Mz iMac]

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@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.

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Also, Supplemental Security Income (SSI).

[JaneMarple]

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@CrazyDaisy wrote:

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@JaneMarple wrote:

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

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

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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.

[esmerelda]

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.