Surviving on $1,800 a month in Social Security, she died looking for a place to live

[Xolodno]

https://www.yahoo.com/news/surviving-1-800-month-social-100746403.html

When I first met her, Joanne Marie Erickson had not left her apartment in weeks and she was just days away from being evicted from her home of 23 years. She sat on a tattered couch, while her cat Muriel wandered around her cluttered living room. She was alone, overwhelmed. “I think I’m falling apart,” she said.

I had hoped, naively it turns out, that my reporting would be enough to help her get the assistance she needed and find stable housing. But long waitlists, leads that went nowhere and promises of help that went unfilled continually frustrated her efforts.

She was evicted in February and died in May, while homeless, just days short of her 71st birthday. Erickson’s tragic end — homeless despite a lifetime spent caring for others — illustrates the urgent and complex challenge of providing support for aging Americans, many of whom will outlive their savings. For the millions relying solely on Social Security, a modest benefit at best, survival in high-cost cities like Los Angeles can be untenable. Layer on the inevitable decline of the body and, for some, the mind, and the prospect for many older Americans grows even grimmer.

For the love of God people, put money aside for retirement and forget about it. Social Security is not enough and we got sicko's in Congress who want to reduce it. I was on a 401k meeting held by our administrator, he spent a lot of time telling everyone how to use one of their calculators to "catch up" for retirement. That same calculator told me I was so far ahead, I had nothing to worry about. And that was just the 401k, not my assets, pension, etc. Plus I still freak out if I have enough.

[Skittles]

1. the problem started

when the game changed drastically with the move from pensions to 401Ks and there was not a whole lot of education about it - essentially because 401Ks were started as a vehicle for rich folk, they were not intended to be retirement for non-wealthy

I was raised by a depression era survivor and a WWII survivor, and they drilled saving money into me - I always saved for retirement. Very glad about that now.

[Xolodno]

2. 401k's appealed to companies and stockholders.

Pensions were company funded and contracted out by firms to manage them, no need to contribute. But when they switched, the onus was on the employee to get a company match. And there is a lot of companies who will only go up to 3% and only half in the first five years (on the rare occasion I apply to Disney, when it comes to pay and retirement, we part ways in the interview).

Insult to injury, most don't even have a clue how save and invest for retirement. At my previous company, there are those who have worked 30+ years and of retirement age. But they can't due to mistakes made earlier and thought Social Security would be enough, plus thought the company pension would be there for them (they killed it eventually and all though they put an extra amount into the 401k for the older employee's, not much of them left, particularly with layoffs, new people won't eve see that). I could retire at 62 in 9 years, but decided to wait until 63 or 64 as I'll get bored pretty quickly and haven't figured out what I want to do on a part time basis (one uncle retired and an old colleague asked him what he was doing, he said "watching the grass grow", works for him twice a week now)

I've had people ask if they could hire me to work on thier retirement. Told them no as I probably need a few licences to do that legally and I'm busy enough as it is already. But they are watching Mad Money for thier advice. And these yokels want to privatize Social Security?! Good lord!

[Happy Hoosier]

6. Recommend The Money Guy show on YouTube

Sound, practical wealth-building advice.

[Oneironaut]

8. Honestly, people need to be educated about scams too.

Saving money is good, but, keeping it is just as important. So many elderly people are falling for different levels of bad / scammy investments, ranging from outright scams to bitcoin to stocks like DJT.

That also includes shitty supplements that do nothing, and, “life hack” crap. They’re all designed to separate elderly people from the wealth they built.

[elocs]

3. Enough of scolding people for not saving more for retirement. Sometimes life just gets in the way, so we don't need it.

Many of us did the best we could, it just wasn't enough. We feel bad enough already.

[mzmolly]

5. Some are lucky to be able to pay bills and afford

food, let alone have a savings.

[mzmolly]

4. Many Americans are scraping by and don't have excess money to save

for retirement.

[Xolodno]

9. I won't deny that.

But it's only going to get harder, so you have to find ways, because no one else is going to help you and the way our country is now? I wouldn't gamble on it getting better. Kick one's morals of paying your debts into the gutter, because, one, the interest rate already has built in interest rate when some one keels over and dies. Two, they get mad when you pay off things, it hits their profits. It's designed to keep you in indentured servitude.

I have student debt and can pay it off tommorow, I have no intention of paying it off. When I analyzed what I pay into it vs. what I would collect in investing it, no brainer. And all those wealthy bastards who look for ways to cheat the system will do the exact same thing and then some. All the while telling others how they should be "morally responsible". They take funds from the SBA and pay themselves handsomely then go BK in a few years, they are usually Republicans.

They dictate the rules while not following them. That is how they make sure they stay on top. It's not going to change until you start punching back. We always decry the 1% here on DU, but we are also talking about people who have no consideration for any one else. Thier motto is "If you are so smart, why aren't you rich". You can't change a system with that many bad actors without fighting back.

Did you know you could rent an apartment in the Yucatan, Mexico for 500-600 a month? Yet the media will tell you not to because of "drug wars", thus using fear to keep you here and paying way too much. I was on a sponsored call with the company that manages my 401k, most of it was how to "catch up" if you don't have enough for retirement. Thier damn calculator said I have more than enough (everyone else, not so much), I still don't believe it and throw money into ways to grow. Maybe its paranoia, I grew up opening the fridge and wondering why we even had it on as there was nothing in there. Nor am I saying I don't live life, I usually borrow against myself for exotic trips as I know I'm making payments to myself.

I fought my way out of poverty and I don't want anyone else to experience it. Maybe that's why I'm a Socialist. However, options are available, most just don't know about them, no one should die old in poverty, but some psychopaths would prefer it that way.

Sorry if I came off a bit cross, it triggures me when I see this kind of stuff. But I got chastised here on DU when I managed to save my parents hard earned assets (which they would never had if wasn't for me) from medical debt. One life lesson I learned, no one is going to look out for you, so you better figure it out. I don't like it, but have to be realistic of what is possible.

[mzmolly]

12. I grew up in poverty as well.

And, thankfully am not in that world anymore. But I do understand not everyone has the skills required to get out of poverty. Some people suffer from mental illness, others from a lack of training due to just surviving their entire life, and many are victims of generational poverty and discrimination.

I agree it's realistic to consider that republicans may weaken our social safety net. I intend to vote against those who seek to do so.

I think it's wise to save if one can. And smart to get work that provides for retirement. But I'm also realistic and realize that life isn't always possible for others.

I'm glad you made it out, too. It's a rough life.

[valleyrogue]

16. Walk in another person's shoes before criticizing them.

You don't get it and never will.

[Xolodno]

17. I'm not trying to criticize.

I'm trying to encourage. Waiting for the system to change is not going to help you. Both my wife and I who are exiles know that, and both our grandparents were friends with previous leaders. I know it goes against moral principles, but I guarantee you those who are not (while preaching it) are doing it, actually I know it.

And I know, most don't have the knowledge to work the system and think it can't be that cruel. Well, it is that cruel and people helping you are trying to do their best, but they don't have the resources. I got lucky, but lucky isn't a zero some gain, too many just give up and that is what they are counting on.

In a number of cases, in order to beat the Republicans, you might have to act like one. If you don't someone else will. I could go on, but probaly be a long TED Talk. Look out for yourself, because nobody is going to give a rats ass if you are in poverty.

Again, I'm sorry if this comes off as offensive, I'm just pissed off at a system where it says you will be fine when it isn't factual. Then leaves you destitue. You have to fight back and do things you think isn't right, but I gurantee you, CEO's making several millions or more a year, don't care. So fuck them, and use the same tactics against them. It won't change until shit happens to them.

[coffeenap]

20. Ok, share where you think the best earnings are?

That'll help the people who don't have your skills, right? Maybe name your top five ideas? (Consider what the next four years are bringing.)

[Xolodno]

21. Ok.

S&P Index fund. Even if its only five to ten dollars a month, it will be money waiting for you. Plus it takes a couple of days to liquidate, so any panic selling is minimalized. Won't be much, but you will be glad when you have it.

Go to Ark7, yes, you become part of the problem, but if you don't, someone else will.

Be prepared to walk away from the country. You can live cheaper in others. This is probably the hardest choice, but a choice my wife's and my own ancestorial relatives had to make, and they made the right choice.

Should you leave the country, don't feel obligated to pay off your debts. My brother in law was worried about it when he was dating someone from another country and considering to move there. I told him your credit profile really doesn't follow you, in five years it falls off your record. Banks just sell the debt, because they already built in the interest rate in case you default. I've met a lot of people who have done this. Drop your morals at the door, because corporations are psychopaths.

Be an asshole when it comes to your finances. If you don't, you will be taken advantage of, including family. Early in life, I was driving down my credit card debt, then all of sudden, it wasn't. I was in a university full time and working full time, so basically I came home dead and slept. For the life of me, could not figure out why the balances were not dropping, plus way too busy to look harder. I eventually had to go BK and my parents gave me a lot of shit for doing it. Later found out, they would take my credit cards and use them while I was asleep. So it technically it wasn't even my debt. But taught me to trust no one.

I know a lot of this doesn't sound good, but in order to right the boat, you might have to capsize it before people pay attention.

[valleyrogue]

24. "Both my wife and I." THERE is the problem in a nutshell and why you have NO credibility on this issue.

Last edited Tue Dec 31, 2024, 01:37 PM - Edit history (1)

You have a spouse as a buffer and a source of income, presumably a working spouse or a spouse who did work. You have absolutely NO concept whatsoever what it is like to be an older single woman in this country. Married people do NOT have a clue what it is like. Your "advice" is so utterly clueless, it is enraging to me as a woman of nearly 70 years of age and didn't prostitute herself in marriage to have that higher standard of living afforded it. For that is what is implied when people lecture single women for being poor in old age. This is what is required of most women who get a higher SS benefit than I did. They had to eff a man legally in order to get a higher benefit, and it is ENCOURAGED by federal law.

I have a brother who has been married 40 years, and when they were working, they literally put ALL of her paycheck in the bank and they lived off his income, which was great pay. They easily amassed a million or more, which isn't unheard of with married couples. It is nothing for married people to have this, plus "own" a house. The great majority of women have to trade their bodies via marriage in order to get that lifestyle. It doesn't come without a price.

Don't lecture single women on something you know little about and will never know about.

[Xolodno]

25. She doesn't work.

And is disabled. I've been told by a social worker she could get benefits. I'll leave it there.

[MichMan]

7. The last three years of 20% inflation made it really hard on retirees and those trying to save for retirement n/t

[Xolodno]

10. The awful truth about inflation...prices go up.

But your wages don't. Investments keep up, everything else, not so much. I could go on a long dissertation, like a TED Talk, but I still think it would be lost.

[bigtree]

11. gee, it's really going to help having the man who allowed the nation to slip into a pandemic in charge again

...and not the party that pulled the nation out of it.

[Maru Kitteh]

13. BULLSHIT. STOP BLAMING THE VICTIMS. It is simply NOT POSSIBLE for 90+% of people

to save up enough money to stave off the threat of homelessness.You think 500K is enough? #1. It’s NOT, and #2., You might as well tell me I have to save 14 Billion dollars. Not possible.

STOP blaming the peons. It’s THE SYSTEM.

[Xolodno]

18. You see, this is what hate about DU sometimes...

...I'm not blaming the victims, they were wronged and given promises no one intended to keep. Many people follow the "right thing to do", which puts them exactly into a bad situation. I don't follow the "right thing to do" as it led me to starving and my family into poverty. These assholes will keep eating the poor until we start eating the rich. So fight back. This person died but probably had oppurtunites, but didn't know about them because our system. Sorry, I'm just pissed off at the system and the lack of resources to help them. I've had wealthy relatives use the system to thier advantage and poor relatives, well, I'll just leave it there.

[meadowlander]

27. This is victim blaming: "For the love of God people, put money aside for retirement."

You need to make enough money in the first place in order to do this and fewer and fewer people do nowadays because of wage stagnation, student loan debt, increased housing costs, and inflation, none of which the average person has any real control over.

And even if you put aside money for retirement, most people are only one restructure and an extended period of unemployment through no fault of their own, a nasty divorce, or a medical emergency away from being wiped out again.

[Clouds Passing]

14. When you're living paycheck to paycheck, saving for retirement is impossible.

[valleyrogue]

15. Your comment is extremely offensive.

I don't think you realize how hard it is to be a single woman, a demographic that is most at risk for destitution in retirement. Never-married women are the poorest demographic in old age. Women typically make far less money than men, and her SS benefit was actually higher than average for women. I have already talked about this particular woman in another thread regarding this same article, but with a different link. $1800 is a LOT of money for SS payments, and she most likely received that much money because she had been married and collected a survivor benefit.

To get that much money from worker benefits would mean she had to have made at least $50,000 a year over the course of a working career of 35 years, assuming SS paying about 40 percent of an individual's earnings (FRA, of course). Not very likely. My nephew, who made much more money and worked 35 years in Oregon state employment before retiring at 59 and collecting SS at 62, gets just $1700 a month. He made $64,000 at his county job when he retired in 2000. He has a great pension, so he is getting probably more total than he made working. That is also not counting any other investments through his job he made.

I get far less in SS money than she did, and I didn't live off a man. This poor woman most likely did a good portion of her life.

[Xolodno]

19. Yeah I know its offensive.

I probably didn't word it correctly, emotion got to me. The system is against you, so you need to be hostile to it, and social workers are usually there for you, but what then can do is very limited. In another post, I get it. I grew up without meals and I don't want anyone else to experience that. Maybe I should take a break from DU. But on the other hand, this is a real problem and people should know about it.

[Blue_Tires]

22. This scares the piss out of me

And it could easily be my future...

[róisín_dubh]

23. I'll work until I'm dead...

I live abroad but the UK is expensive and I wiped out my small 401K for reasons I won’t get into. Luckily I have a pension through my job here and will be able to collect Social Security (if it exists in 20 years or so).
But I can’t save much unless I take on a second job.
I’m hoping my business will take off in 2025 so I have a flexible side hustle. My only other hope is to buy a place that I can then sell.

[questionseverything]

26. What the country needs is more subsidized housing for the elderly and disabled

[FM123]

28. Yes, I think so too.