Living only on social security

[StarSong]

“Luck is what happens when preparation meets opportunity.”

Very true. Plus as in DH & my case, many of us had the advantage of wise counsel throughout the years from a few people in the generation above ours. Add to that some stellar real-life examples, and plenty of disturbing ones.

Senior years for those with well-considered retirement plans panned out quite differently than for those who hadn't stored plenty of nuts for the winter of old age. Earning levels during working years was less important than how much was put aside for future years.

One last bit - and no judgment intended, it's merely a statement of fact: divorce deep in midlife or later can be devastating to retirement finances for both spouses. Had DH & I split up in our 50s or 60s, our respective financial pictures would be far gloomier.

 

[OneEyedDiva]

This was 20 plus years ago. Here's how my mother lived on about $630 a month after my father died:
~She lived in public housing. I had her moved to a much nicer, newer building (than the one she and my father started out in) when an apartment became available. It was much closer to me. The housing authority charged 33% of tenants' net incomes, so she paid $210 a month, which included all utilities.

~She cooked from scratch and only ate in restaurants when she was out and about for more than a couple of hours. She always had enough food, even enough to feed my son and me, if we wanted.

~For entertainment, she either attended church functions, enjoyed outings with the senior center or went to Atlantic City to gamble. Buses to A.C. ran frequently from the senior building she lived in before moving near me; that's also where the senior center was. Tickets may have been $30 and passengers got $15 or $20 back in slot credits. My mother would play a nickel machine until it screamed. She won enough to keep her interested in going. I hear those nickel machines have good payoffs.

~She didn't take nearly as many medications as I do now. Her medications were $5 per RX due to N.J.'s PAAD program, even the weekly injection that the nurse who told me how to administer it said would have cost $1,000 a pop.

~Until they fell out over her refusing another bone marrow test done (she was past 90 at the time), my mother's doctor saw her pro bono. She had worked for him and his wife for several years and helped raise their children. After she (we) changed doctors, even though by then I was writing checks from her account for all her bills, I don't remember ever writing one for our new doctor.

~Being a faithful church goer, she had an extensive wardrobe of classic dresses, suits and hats. She also had enough casual outfits, so didn't need to buy any more clothes.

~After my father died, she had an accident with her car that tore off the door. She never drove after that, so had no car expenses. She and my father had most of their savings in the form of U.S. bonds, but she never had to touch those.

 

[Teacher Terry]

Very true. Plus as in DH & my case, many of us had the advantage of wise counsel throughout the years from a few people in the generation above ours. Add to that some stellar real-life examples, and plenty of disturbing ones.

Senior years for those with well-considered retirement plans panned out quite differently than for those who hadn't stored plenty of nuts for the winter of old age. Earning levels during working years was less important than how much was put aside for future years.

One last bit - and no judgment intended, it's merely a statement of fact: divorce deep in midlife or later can be devastating to retirement finances for both spouses. Had DH & I split up in our 50s or 60s, our respective financial pictures would be far gloomier.

Grey divorce definitely makes a big difference in your later years. Some good friends of mine had plenty of money saved and a paid for house. Then the wife got cancer that came back 8 times over 20 years. Then she got dementia in her late 50’s. Then the husband got terminal cancer. They had health insurance but were devastated by medical bills.

The husband sold everything and paid all the medical bills. He died and her income wasn’t enough for memory care so I applied for Medicaid for her. What a sad end for people that were responsible and did everything right.

There’s one poster that assumes that only people that haven’t saved for retirement have issues. Lots of bad circumstances can negatively impact one’s retirement.

 

[StarSong]

This was 20 plus years ago. Here's how my mother lived on about $630 a month after my father died:
~She lived in public housing. I had her moved to a much nicer, newer building (than the one she and my father started out in) when an apartment became available. It was much closer to me. The housing authority charged 33% of tenants' net incomes, so she paid $210 a month, which included all utilities.

~She cooked from scratch and only ate in restaurants when she was out and about for more than a couple of hours. She always had enough food, even enough to feed my son and me, if we wanted.

~For entertainment, she either attended church functions, enjoyed outings with the senior center or went to Atlantic City to gamble. Buses to A.C. ran frequently from the senior building she lived in before moving near me; that's also where the senior center was. Tickets may have been $30 and passengers got $15 or $20 back in slot credits. My mother would play a nickel machine until it screamed. She won enough to keep her interested in going. I hear those nickel machines have good payoffs.

~She didn't take nearly as many medications as I do now. Her medications were $5 per RX due to N.J.'s PAAD program, even the weekly injection that the nurse who told me how to administer it said would have cost $1,000 a pop.

~Until they fell out over her refusing another bone marrow test done (she was past 90 at the time), my mother's doctor saw her pro bono. She had worked for him and his wife for several years and helped raise their children. After she (we) changed doctors, even though by then I was writing checks from her account for all her bills, I don't remember ever writing one for our new doctor.

~Being a faithful church goer, she had an extensive wardrobe of classic dresses, suits and hats. She also had enough casual outfits, so didn't need to buy any more clothes.

~After my father died, she had an accident with her car that tore off the door. She never drove after that, so had no car expenses. She and my father had most of their savings in the form of U.S. bonds, but she never had to touch those.

What a lovely testimonial to a remarkable woman who knew how to enjoy life, stay within her means and stand up for herself.

It's also a lovely testimonial to a state government with strong housing and medical supports for low income residents.

Last but not least, the above is a set of lovely testimonials to how she raised you, the woman you became, and your ability/willingness to navigate various bureaucracies on her behalf. No surprise on this last paragraph, dear Diva.

 

[StarSong]

Grey divorce definitely makes a big difference in your later years. Some good friends of mine had plenty of money saved and a paid for house. Then the wife got cancer that came back 8 times over 20 years. Then she got dementia in her late 50’s. Then the husband got terminal cancer. They had health insurance but were devastated by medical bills.

The husband sold everything and paid all the medical bills. He died and her income wasn’t enough for memory care so I applied for Medicaid for her. What a sad end for people that were responsible and did everything right.

There’s one poster that assumes that only people that haven’t saved for retirement have issues. Lots of bad circumstances can negatively impact one’s retirement.

Medical expenses can be devastating and seemingly bottomless. I deeply disagree with the hospital/doctor billing practice of charging an insurance company $100 for a test, but uninsured patients are billed $500 or more for the very same test.

It's also infuriating to get bills from doctors who "drop in" on hospital patients (apparently at the request of a primary physician, but not covered by insurance), stay for five minutes or less, do zero that impacts the patient's care, then submit a big bill for their services. I believe this should be illegal.

I'm so sorry for your friends, such a terrible situation.

When I go to hospitals and big medical centers I'm often infuriated by the money spent on expensive decor including sculptures and original artwork. Someone's paying for that. Framed posters would be just fine.

You're absolutely right - no matter how carefully we plan, when life takes a couple of difficult turns those plans quickly turn to ashes.

 

[Timewise 60+]

I never planned to live on SSI and now that we are retired, we do not live only on SSI, but I am glad we have it.

 

[officerripley]

Lots of bad circumstances can negatively impact one’s retirement.

So true. The parents of a friend of mine worked and saved hard all their lives so that they could afford for both of them to live in assisted living 'till it was either nursing home or morgue time. The husband died before retirement of an undiagnosed heart ailment. Which left even more $$ for the mother to be able to afford the assisted living place. But the mother lived to be 97 years old and she and her husband had only planned it out that they would live to be about 85--and that was planning for even longer than they thought they'd need--since their parents and everyone else they were related to only lived till their early 70s (some only made it to their 60s).

Almost no one lived to their late 90s back in the past; people are just living longer now due to medical advances. So it's hard for humans to adjust their thinking to plan for money to last such a long time.

 

[dilettante]

I never planned to live on SSI and now that we are retired, we do not live only on SSI, but I am glad we have it.

SSI and SSDI are not Social Security, though like Social Security they are administered by the SSA.

They are not earned benefits, but welfare. They were put under the SSA to help recipients feel better about being on the dole in retirement.

We administer two disability-related programs. Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). While SSDI and SSI have different work and financial rules in order to qualify, at the core, both benefits are intended to provide financial support to individuals who are disabled.

Those probably deserve their own thread. It's a different topic and doesn't apply to most people.

 

[StarSong]

So true. The parents of a friend of mine worked and saved hard all their lives so that they could afford for both of them to live in assisted living 'till it was either nursing home or morgue time. The husband died before retirement of an undiagnosed heart ailment. Which left even more $$ for the mother to be able to afford the assisted living place. But the mother lived to be 97 years old and she and her husband had only planned it out that they would live to be about 85--and that was planning for even longer than they thought they'd need--since their parents and everyone else they were related to only lived till their early 70s (some only made it to their 60s).

Almost no one lived to their late 90s back in the past; people are just living longer now due to medical advances. So it's hard for humans to adjust their thinking to plan for money to last such a long time.

Estimating longevity is almost impossible. When I look at current crazy-high AL pricing versus staying in our paid off home plus some help (like a weekly housekeeper, grocery deliveries and some hot food delivery), it looks like it would be a lot cheaper to do the latter. But nobody knows what life and the economy will look like in 10-15 years...

 

[Teacher Terry]

SSI and SSDI are not Social Security, though like Social Security they are administered by the SSA.

They are not earned benefits, but welfare. They were put under the SSA to help recipients feel better about being on the dole in retirement.


Those probably deserve their own thread. It's a different topic and doesn't apply to most people.

SSDI payments are based on your earnings until you become too disabled to work. The range of payments varies greatly. It’s extremely difficult to obtain and can take years unless you’re terminal. I worked in the field for 30 years. Basically it’s disability insurance that everyone pays into and which no one hopes to use.

Unfortunately at one point in time they were easy to get and people with substance abuse problems automatically qualified which was ridiculous and just enabled them to keep using. It’s probably been at least 25 years since this was the case but it’s led to permanent misconceptions about how it works.

 

[dilettante]

Basically it’s disability insurance that everyone pays into and which no one hopes to use.

True, but most people will never receive any benefit even though all have contributed.

But I won't split hairs. It is what it is, I just think it may deserve its own thread.

 

[OneEyedDiva]

What a lovely testimonial to a remarkable woman who knew how to enjoy life, stay within her means and stand up for herself.

It's also a lovely testimonial to a state government with strong housing and medical supports for low income residents.

Last but not least, the above is a set of lovely testimonials to how she raised you, the woman you became, and your ability/willingness to navigate various bureaucracies on her behalf. No surprise on this last paragraph, dear Diva.

What lovely compliments about my mother and me StarWhat's even more remarkable about my mother is that she "acquired" me, along with her husband who was my grand uncle, when I was a baby and they raised me as their own. Even many of our relatives didn't know. They were in their 40s at the time. She always had my back and me...hers. I credit her with being the loving example of how to be a mother and grandmother. Once again.....

 

[Teacher Terry]

Today I found out that the house passed the social security fairness bill that would eliminate WEP and the senate is expected to approve it because 62 senators sponsored the bill and it’s been a bipartisan effort. President Biden will sign it. Needless to say I‘m ecstatic over the news!!

 

[dilettante]

Today I found out that the house passed the social security fairness bill that would eliminate WEP and the senate is expected to approve it because 62 senators sponsored the bill and it’s been a bipartisan effort. President Biden will sign it. Needless to say I‘m ecstatic over the news!!

No problem. Just pay in both shares of FICA for the missing years, with interest. "Fair" doesn't mean free ride.

 

[Teacher Terry]

No problem. Just pay in both shares of FICA for the missing years, with interest. "Fair" doesn't mean free ride.

It appears congress doesn’t agree with your statement. I am shocked that both sides were able to agree and work together to get this done.

 

[dilettante]

 

[dilettante]

Retired SSA staff are warning that is anything an honest label would be "Unfairness Act" because it erodes the attempt to help those with low-income work careers and other honest actors who paid into the system. It undermines the integrity of a system that already has a serious funding shortfall arriving all too soon.

I suspect even if it passes and gets signed it will quickly be overturned in 2025.

 

[Imogene]

I only have SS. $980 month. Farm is paid off. With monthly bills I can save about $200 a month. But something always seem to happen and I end up with losing a little. Only have about $6000 left. Kind of precarious.

Boy is it ever.

Like you, I am NOT leaving this farm, until I’m carried off. Even taking care of my last two horses, I can’t live any place that much cheaper and still preserve my sanity. NOR would I have the freedom to do as I please somewhere else. There’s a reason I choose to live on an old farm road that is barely more than 1-1/2 lanes.

I am well established as the “get blood out of a turnip” queen. Even with keeping fresh water in front of the horses, Since husband’s passing, I have cut the water bill by 65% and cut the electric bill in half - even over the summer. The 500 gallon propane tank is still at 62% full.

My groceries are close to non-existent because I don’t have the appetite I used to. I just make sure I have plenty of Boost in the refrigerator and peanut butter in the cupboard. It costs me more to feed the dogs & horses but they are the reasons I get up every day.

I am very thankful I had good paying jobs in my life and also thankful husband had a great job as his SS transferred to me after he passed. I don’t take any of it for granted

 

[Paco Dennis]

Boy is it ever.

Like you, I am NOT leaving this farm, until I’m carried off. Even taking care of my last two horses, I can’t live any place that much cheaper and still preserve my sanity. NOR would I have the freedom to do as I please somewhere else. There’s a reason I choose to live on an old farm road that is barely more than 1-1/2 lanes.

I am well established as the “get blood out of a turnip” queen. Even with keeping fresh water in front of the horses, Since husband’s passing, I have cut the water bill by 65% and cut the electric bill in half - even over the summer. The 500 gallon propane tank is still at 62% full.

My groceries are close to non-existent because I don’t have the appetite I used to. I just make sure I have plenty of Boost in the refrigerator and peanut butter in the cupboard. It costs me more to feed the dogs & horses but they are the reasons I get up every day.

I am very thankful I had good paying jobs in my life and also thankful husband had a great job as his SS transferred to me after he passed. I don’t take any of it for granted

I am blessed to still have Misa, my partner for about 40 years. Like you, she is very good at sustainability. Me, not so much, but as I age, I don't need as much stuff, but the stuff I do need seems to keep getting more expensive each month. If I run into problems, I could probably get the help I need, but I am planning on a "die here on the farm." I hope that happens.

 

[gruntlabor]

I am blessed to still have Misa, my partner for about 40 years. Like you, she is very good at sustainability. Me, not so much, but as I age, I don't need as much stuff, but the stuff I do need seems to keep getting more expensive each month. If I run into problems, I could probably get the help I need, but I am planning on a "die here on the farm." I hope that happens.

Let it be so.

 

[gruntlabor]

error

 

[Brookswood]

IMO this is a political move. Cram it theough a lame duck Congress that will soon be replaced. If the new Congress attempts to correct the error, then the supporters can claim they are cutting Social Security for senior citizens. Above all, hide the truth about why we have WEP from the people.

WEP fixed a flaw in the system. Repealing WEPis grossly unfair to those of us who have paid into social security for all of our working lives

 

[Rindee]

My annuity, then my social security kicks in on the 20th!

 

[Irene]

Many many ..in fact millions here in the UK living on Social security. ... and state pensions are also very low ..somewhere around £800 per month. It's a national disgrace

Oh my, that is not good. Did you pay into the SS system while you were working, like we do in the US?

 

[hollydolly]

Oh my, that is not good. Did you pay into the SS system while you were working, like we do in the US?

yes we have no choice it's taken directly from our salary....