Community Chat

[151949]

Do people not understand that they will have a significant decrease in income when they retire? Don't they realize that they have to prepare for this? That you can't go into retirement with credit card debt and/or home loans?

Yesterday we were discussing taking a cruise and a family member was bemoaning that she barely is able to pay her monthly bills plus put a small amount away for the yearly bills like taxes and insurance.She has a very small savings and, of course, the money isn't making money in this economy.She lives totally on her SS, and still has a home equity loan. Another family member who is a very recent widow was saying she is going to get a reverse mortgage so she has a monthly income because her SS and her portion of her late DH pension is less than $800. I was trying to tell her I thought she would be better off to sell her home - put the money into safe investments and take a monthly payout - esp. since she is in her mid 80's. and move into a small apartment that will be easy to care for, and have maintainence man when something needs repaired. But, as expected, I was shouted down because she wants her house.Why a woman who is 86 wants to care for and be responsible for repairs on a house is beyond me!

Don't people realize that you have to save up to retire? That you can't live on SS only? That retirement requires years of preparation? OR that if you don't have the money and your healthy you may have to keep working? I was amazed as another family member was telling us that her DH retired at 58 years old and had no income. They used their savings and sold as much of their stuff as they could to exist til her DH turned 62.Now she is widowed and has to live on 1/2 of his SS and a small saving that is left.

Wow, we planned our retirement for many years - saved almost my entire income and lived on hubby's income, and yet we still must live modestly, and watch our bucks.