Survey: 64% of Americans Now Living Paycheck to Paycheck

[friar1610]

I’m volunteering again this year doing taxes for seniors at the local Senior Center with the AARP Tax Aide program. Many of the returns are for widows, widowers or long-time divorcees with incomes in the $30K -$40K range in a HCOL area. After reading that article I’m going to be (1) wondering how many of them are being hit hard by recent inflation; (2) redoubling my efforts to make sure I get them every tax credit/deduction I can and (3) counting my blessings and doing all I can to try to make sure my wife won’t suffer a similar fate if I’m the first to go.

By all outward appearances, many of these seniors seem to be doing OK but I sure don’t know what financial challenges they face living day-to-day.

 

[Music Lover]

That article had examples of people that must have retired with little savings. They may not have been high paid jobs, but certainly were middle class near average it seems. So the logical explanation is that they retired without sufficient savings. Should have kept working longer and saving more.

People on this forum think differently. As I said before, some people don't have much money but it doesn't bother them like it would bother you or me. They have different expectations and different standards. Many of them would rather scrape by on SS or CPP than work another day. Don't forget that for a lot of people who didn't earn that much, many of them were stuck in miserable dead end jobs that most of us here would never do.

I'd rather sell my house and everything I owned and move to an inexpensive apartment than have to go back to work at a low paying dead end job. I wouldn't even go back to my modest paying job with great benefits if I could get by another way.

 

[Irishgirlyc58]

I’m volunteering again this year doing taxes for seniors at the local Senior Center with the AARP Tax Aide program. Many of the returns are for widows, widowers or long-time divorcees with incomes in the $30K -$40K range in a HCOL area. After reading that article I’m going to be (1) wondering how many of them are being hit hard by recent inflation; (2) redoubling my efforts to make sure I get them every tax credit/deduction I can and (3) counting my blessings and doing all I can to try to make sure my wife won’t suffer a similar fate if I’m the first to go.

By all outward appearances, many of these seniors seem to be doing OK but I sure don’t know what financial challenges they face living day-to-day.

Thank you for doing this. Life is difficult for many people and Im sure that tax refund helps relieve a little of their stress.
Compassion for others should not be overlooked.

 

[daylatedollarshort]

The article doesn't say if she is married or has children, who could possibly help her. Plus she lives in Ashville, NC which is a pretty high end tourist area. Lots of possibilities for her, and she didn't plan very well.

If she had a roommate with a similar income, it seems like that would solve all her problems. One of the local communities near us has a senior roommate matching service where the service does the pre-screening. Four seniors in a house Golden Girls style with similar incomes to hers seem like they would all do fine.

 

[Teacher Terry]

I live in a fairly high COL and when I got divorced I knew if I wanted to stay here I needed to buy a condo right away once the house was sold. In the past year mine has went up 50k. I would prefer to live alone in a studio versus having roommates. I understand why people aren’t choosing to go that route.

When my best friend’s dad died her mom asked me to help with all the paperwork because she was in her middle 80’s. She was concerned about money but when I looked at her expenses her house and car were fairly new and paid off. She had savings and wasn’t spending the 34k she brought in a year. Her home is worth a ton of money and could be sold if long term care is needed. So even though her income went down with her husband passing she was fine.

 

[daylatedollarshort]

^^^ Of course not. Now, you get to make your own homemade soup, which is healthier and less expensive.

I think this is where advertising has really worked to convince people to spend more for less. Most canned soups are not that healthy and actually pretty expensive on a per calorie basis. With SNAP benefits of $4.17 a day, a low income person would have to buy foods like beans, rice and $1 a pound produce to have that amount cover a day's meals. One can of soup for $2 would take half that SNAP amount and only supply a few hundred calories and not a huge portion of the DV of most vitamins and minerals.

 

[Amethyst]

I hated having to share an apartment in my 20's. I didn't like having somebody else's social life playing out in my home. Putting up with the same thing, with old ladies, would be like one of the circles of Hell.

It would be a high price to pay, for having "someone" around who'd notice if I fell on the floor and couldn't get up.,

If she had a roommate with a similar income, it seems like that would solve all her problems. One of the local communities near us has a senior roommate matching service where the service does the pre-screening. Four seniors in a house Golden Girls style with similar incomes to hers seem like they would all do fine.

 

[athena53]

Back on living paycheck to paycheck, here's a recent article about retirees living SS check to SS check.

That's a really sad article. I'd read somewhere that about half of retirees rely on SS for 90% or more of their retirement income. When I see retirement-related posts on FB with comments lamenting how hard it is to live on SS alone, I point out tactfully that the framers of SS intended for it to be part of a 3-legged stool, including private pensions and personal savings- not anyone's sole source in retirement.

I saw a lot of failure to plan in that article- they quit smoking, paid off credit card debt, stopped taking trips to France, replaced trucks and SUVs with gas-sippers just before retirement- but what did all those habits cost in their pre-retirement years? And yes, I really hope the one lady didn't drop her Medicare supplement- hard to tell. One FB comment I saw was from someone who did that because it was expensive- and then got billed for 20% of some expensive care.

This kind of paycheck-to-paycheck living among retirees is even sadder because many of them are too frail to make extra income in retail, restaurants, etc. where they have to be on their feet all day.

 

[Music Lover]

I hated having to share an apartment in my 20's. I didn't like having somebody else's social life playing out in my home. Putting up with the same thing, with old ladies, would be like one of the circles of Hell.

It would be a high price to pay, for having "someone" around who'd notice if I fell on the floor and couldn't get up.,

Of course it's not for everyone, but there are those could make it work.

 

[athena53]

I hated having to share an apartment in my 20's. I didn't like having somebody else's social life playing out in my home. Putting up with the same thing, with old ladies, would be like one of the circles of Hell.

It would be a high price to pay, for having "someone" around who'd notice if I fell on the floor and couldn't get up.,

Interesting coincidence: a firm has moved into the KC area and is helping to match people who want to rent out a room (or rooms) in their house with people who are interested in those arrangements. The governments in those suburbs are trying to crack down on them because they're essentially turning one-family homes into multi-family housing. I know that KC has a statute limiting how many unrelated people can occupy a single-family home.

I'm with you- I LOVE the peace and quiet of living alone, but I suppose that renting a room to someone to bring in a little money or renting a room in someone else's house can be an option if you can't afford to live alone.

I'm also seeing ads from places that will buy your home from you, freeing up the equity, and lease it back to you. Almost as scary as a reverse mortgage.

 

[Music Lover]

And if you live in northern areas with finished basements it's a lot easier to share space because your living area is on a separate floor. Maybe it has a mini kitchen, or maybe you have a house with an in-law suite.

 

[jazz4cash]

The article's wording on Leslie's Medicare is very vague. It sounded like a throwaway quote, which a young reporter didn't bother to investigate.

No matter how pinched she's feeling, she would be mad to give up all health insurance; and she doesn't sound crazy. I wondered if she has a policy through her teacher's retirement. Same as I have Medicare Part A, and Federal BCBS in lieu of Med Part B.

I agree the statement about her health insurance needed clarification/detail. I’d be concerned that some readers would take that as advice Maybe not crazy but taking cold showers seems like a radical over reaction.

 

[Amethyst]

My retired Dad went a little nuts during the 70's inflation. I was still living with them (a teen in college). To save hot water, he would turn on the water heater before HE took a shower, then turn it off. If Mom or I wanted a warm shower, we had to hop to it, and hope the hot water didn't run out before we were done. In addition, I was only allowed to wash my long hair once a week.

Their electric bill was only about $18.00 a month; I can't imagine he saved more than 25 cents a month by this measure.

taking cold showers seems like a radical over reaction.

 

[Amethyst]

I, too, wondered at someone who could spend a lifetime doing something as risky and costly as smoking, then just...quit...because they were feeling a bit pinched. And if they couldn't afford to pay off credit cards before, how did they suddenly find that money?

The article felt like a throwaway to a junior reporter. "Go interview a few old people about how they're getting by these days."

I saw a lot of failure to plan in that article- they quit smoking, paid off credit card debt, stopped taking trips to France, replaced trucks and SUVs with gas-sippers just before retirement- but what did all those habits cost in their pre-retirement years? .

 

[jazz4cash]

The article was on msn under a Washington Post banner but I couldn’t find it anywhere with the Post app. I thought there might be more detail and comments. A few folks did comment that her income of $3k/ mo seemed adequate. They never stated expenses but that is nearly 2x what folks with SS only have.

 

[NW-Bound]

The article was on msn under a Washington Post banner but I couldn’t find it anywhere with the Post app. I thought there might be more detail and comments. A few folks did comment that her income of $3k/ mo seemed adequate. They never stated expenses but that is nearly 2x what folks with SS only have.

You made me look up the comments.

One of them wrote: "I'll keep working before I give up hot water for a shower. However, I bought three 8-ounce filets last night and it cost me over $70. It'll be a while before that happens again."

What? 1.5 lbs of filet mignon for $70? I was able to get an entire loin for less than that price. I wonder if the price has gone up that much.

Just a couple of weeks ago, a local market had NY steaks of choice grade for $6/lb. I bought some in the past on a deal like that, and it was fine. Definitely can't compare to Costco prime cut which is 3x the money at $18/lb, but it was not bad at all for the money.

 

[NW-Bound]

Speaking of having a housemate to reduce living expenses, I just remember the following incidence with my mother.

After my father passed away, my mother allowed a female acquaintance from out of state to move in with her. They were about the same age, both recently widowed. My mother did not charge her for rent, although the housemate did contribute to some expenses. My mother's home has 3 bedrooms with 2 baths.

I thought it was going well, because both of them got some companionship. However, the other woman moved out to an apartment after a few months. Nobody talked about what was going on between them, but obviously there was some conflict.

It's hard for cranky geezers to get along, I guess.

 

[NW-Bound]

Another interesting story about cranky geezers.

A close friend since high school bought a 2nd home on the CA coast. His main home is on the east coast. The CA home was in a 55+ community. He said he was the youngest home owner there.

He ran for the president of the HOA and got the job. I did not ask what prompted him to do it, but I guess the residents hated one another, and would rather vote for someone new.

He told me of having to resolve conflicts between the old timers. One woman complained of getting sexual harassment by a neighbor. That's the kind of problems they came to him for. He often had to tell them that they had to call a cop, as he could not handle it.

 

[travelover]

.........It's hard for cranky geezers to get along, I guess.

I think we prove that daily, right here on this forum.

 

[Gumby]

You made me look up the comments.

One of them wrote: "I'll keep working before I give up hot water for a shower. However, I bought three 8-ounce filets last night and it cost me over $70. It'll be a while before that happens again."

What? 1.5 lbs of filet mignon for $70? I was able to get an entire loin for less than that price. I wonder if the price has gone up that much.

Just a couple of weeks ago, a local market had NY steaks of choice grade for $6/lb. I bought some in the past on a deal like that, and it was fine. Definitely can't compare to Costco prime cut which is 3x the money at $18/lb, but it was not bad at all for the money.

Tenderloin steaks at the grocery here are $26.99 lb. In 2019, they were $17.99 That's up 50% in two years.

 

[NW-Bound]

I think we prove that daily, right here on this forum.

Some people are cranky even when young.

It's just that old age makes them ornerier.

 

[Gumby]

I've never lived completely alone. Before I got married, I always had roommates. In fact, right after the young wife and I got married, I had to deploy on my submarine again. She moved in with my roommate Harry for a few months until I got back and we got our own apartment.

 

[ExFlyBoy5]

What? 1.5 lbs of filet mignon for $70? I was able to get an entire loin for less than that price. I wonder if the price has gone up that much.

Just a couple of weeks ago, a local market had NY steaks of choice grade for $6/lb. I bought some in the past on a deal like that, and it was fine. Definitely can't compare to Costco prime cut which is 3x the money at $18/lb, but it was not bad at all for the money.

I think some prices have gone up significantly. We haven't bought red meat in a while (we get most of it from a local farm and buy in bulk) but went to a high end steak house a couple of days ago and the meal for two was about $300. The same meal about 18 months ago was a little over $200. Also, this picture is from the Seattle Fish Market.

 

[ExFlyBoy5]

Speaking of having a housemate to reduce living expenses, I just remember the following incidence with my mother.

After my father passed away, my mother allowed a female acquaintance from out of state to move in with her. They were about the same age, both recently widowed. My mother did not charge her for rent, although the housemate did contribute to some expenses. My mother's home has 3 bedrooms with 2 baths.

I thought it was going well, because both of them got some companionship. However, the other woman moved out to an apartment after a few months. Nobody talked about what was going on between them, but obviously there was some conflict.

It's hard for cranky geezers to get along, I guess.

So not as portrayed on the show "Golden Girls"?

 

[tmm99]

Speaking of having a housemate to reduce living expenses, I just remember the following incidence with my mother.

After my father passed away, my mother allowed a female acquaintance from out of state to move in with her. They were about the same age, both recently widowed. My mother did not charge her for rent, although the housemate did contribute to some expenses. My mother's home has 3 bedrooms with 2 baths.

I thought it was going well, because both of them got some companionship. However, the other woman moved out to an apartment after a few months. Nobody talked about what was going on between them, but obviously there was some conflict.

It's hard for cranky geezers to get along, I guess.

Interesting... You may be right, but were they still friends afterwards, doing things together, etc?