Inflation Has Many Seniors Worried About Outliving Their Savings
- The Lewes, Delaware canal at twilight.
- NPR, Feb. 19, 2022.
Susan DeFrance retired two years ago when the truck manufacturing company she worked for phased out her division. "I was pushed into my retirement," says DeFrance, who's 66. "So it's really very scary." She's nervous because she felt just on the edge of having squirreled away enough in her life savings. And now, she's afraid that money isn't going to last. "I am very worried about that," she says. "Milk has gone up like $2 a gallon ... and gasoline."
To cut expenses, DeFrance sold her house in New Jersey and moved to a mobile home park in Delaware, where the taxes are almost nothing. Her one modest splurge in retirement: a used power boat. The park is on a canal near the ocean and has a dock. "I bought the boat outright," she says. "To make sure my boys come and visit me." DeFrance is trying to live much more cheaply than she used to, on just $40,000 a year. But even so, she's anxious about outliving her savings. Her eldest son says if it came to it, she could squeeze in with his family.
"They're willing to make these sacrifices for me that I'm not willing to accept," she says. "So hopefully, you know, I won't last to be 100 years old." She jokes that maybe "a nice boating accident" will take care of the problem and laughs. But she says she really does worry. What if inflation keeps going crazy, interest rates go way up, the stock market crashes and wipes out more of her savings? "I have a hard time getting to sleep sometimes because all of those things run through my head," DeFrance says.
Many retirees are nervous about the same thing. Inflation is higher than it has been since the 1980s. The higher inflation rate could come back down pretty quickly or be something longer term and more damaging. "Retirees are in a tough spot," says Darrell Pacheco, a certified financial planner in Charlottesville, Va., who runs a business helping employees make better financial decisions. He says all the focus on inflation makes many people scared. "And when it comes to folks and their money, we know that high anxiety usually tends to lead us to make bad decisions," he says...
- More, https://www.npr.org/2022/02/19/1081875948/inflation-has-many-retirees-worried-about-outliving-their-savings
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- Retiring In Delaware, Pros and Cons,
https://aginggreatly.com/retiring-in-delaware-pros-and-cons/
bluedigger
(17,086 posts)Why would I expect the door not to hit me in the ass on the way out?
LakeArenal
(28,806 posts)Moved to Oregon in early '82. Unemployment over 10%, inflation about the same. Had $3k in savings.
It wasn't pretty. Slept on a sofa for a while. Lots of pasta. Sometimes with sauce. Or even cheese.
mopinko
(70,023 posts)i keep seeing people wringing their hands about inflation, but stagnation like we've had isnt good for wages or most middle class investments.
SouthernDem4ever
(6,617 posts)but today's 401K's don't have any protections - they took away safe interest savings options.
mopinko
(70,023 posts)and tho most dont want to sell their homes, if they take a reverse mortgage, home prices matter.
RKP5637
(67,088 posts)current politicians could give a fuck about them. And many of these same people will be the ones that voted the politicians into office.
SouthernDem4ever
(6,617 posts)to which I respond they are using a false equivalence.
RKP5637
(67,088 posts)They will be very sorry about who they voted for unless they are extremely rich. Then they wont care.
3Hotdogs
(12,332 posts)We are selling it to our stepdaughter who lives in the upstairs apartment. Selling it at a discount in exchange for a life Estate.
My pension and SS nets 61k. Wife gets another 40K.
Still, we worry.