Is there a solution to this 'bread & water' Retiree dilemma (pensions, weather)
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Imagine five people in a lifeboat, each given a gallon of water and a loaf of bread. Even though everyone ultimately 'needs' their resources to last as long as necessary, everyone makes their own decisions about how/when to consume their own limited resources. As in society, some will immediately consume all they have …while others save as much as possible for ‘later.’
Both spend/invest/save their resources based on their own fears and priorities. However, the ‘savers’ are ultimately considered 'greedy' for any reluctance to alleviate the suffering of those who saved nothing. Meanwhile, the ‘non-savers’ inevitably blame their resulting 'lack' on others (eg; taxes, government corruption, inflation, recession, rising costs, etc). Those who 'save' survive this 'life ordeal' with bread & water left over, while the non-savers who survive, barely do so in abject poverty.
Saving little can be a result of laziness and overconsumption, of course. There are a dozen other very good reasons why retirees would have little saved, or have their savings used up. It's a complex human story, not a simple one.
Imagine five people in a lifeboat, each given a gallon of water and a loaf of bread. Even though everyone ultimately 'needs' their resources to last as long as necessary, everyone makes their own decisions about how/when to consume their own limited resources. As in society, some will immediately consume all they have …while others save as much as possible for ‘later.’
Both spend/invest/save their resources based on their own fears and priorities. However, the ‘savers’ are ultimately considered 'greedy' for any reluctance to alleviate the suffering of those who saved nothing. Meanwhile, the ‘non-savers’ inevitably blame their resulting 'lack' on others (eg; taxes, government corruption, inflation, recession, rising costs, etc). Those who 'save' survive this 'life ordeal' with bread & water left over, while the non-savers who survive, barely do so in abject poverty.
I don't believe it is as simple as grouping retirees into "savers" and "non-savers". What about the ones that saved through investments or put money into retirement funds only to see a large portion of it vanish when the economy tanked? You also can't discount the effect of the steadily increasing cost of living on people with fixed incomes.
or those of us who worked all of our lives, paid our bills, helped our children when they needed it, and never amassed any great savings.
I had a small house paid for which I sold, and I get a check every month. Reading this forum, I don't feel any less secure than the rest of you. Security appears to be more a state of mind than a number on a bank statement. A lifetime of learning to manage has given me skills that come in handy now.
For those who do find themselves in "abject poverty", I sincerely hope that family, society, and government are there to help.
Add divorce, disability, medical emergencies, increasing health needs, job loss forcing early "retirement" . . . etc etc.
There are all sorts of things that can eat up someone's hard earned savings -- and possiibly even throw them into debt for the rest of their lives.
I have a friend (late 50s) in Kentucky who had lost his job (construction) in 2009. He had worked hard to hang onto his home and equipment, working every small job possible, including mowing lawns. His wife was diagnosed with ovarian cancer in 2010. She had to quit work. Because they had too many assets . . . they could not qualify for Medicaid. To make a long story short, she has been in and out of the hospital and with surgery since 2010 and even with write-offs, the remaining bill to one hospital alone was nearly $300,000 . . . and so the hospital filed a LIEN on the man's property in 2012.
His van died in 2012 and he didn't have money to even repair it, so there went his transportation to haul his lawnmower (they had already sold their car to get some cash to pay off physicians). The longer he was out of work, the less employable he evidently became (and the older he got). He started working a late night shift at McD's and found a second job during the day doing janitorial services at a nursing home, where he also did landscaping.
His wife is barely hanging on the last I talked to him (June). They have sold everything, down to their fishing boat, hunting equipment, sewing machine, tools, etc. Son dropped out of school, moved home, works 2 part time jobs, helps Dad w/ landscaping. They share son's truck for transportation.
SH$T happens and it has nothing to do with poor planning.
I'll admit that I was thinking more about those who spend their lives 'living beyond their means' and then bemoan their lack of savings ... and/or their inability to weather even a nominal financial, health or other unforeseen storm. Further, I acknowledge that most of us know of anecdotal situations where folks lost everything due to no fault of their own. --But, these are exceptions, rather than the rule.
I believe that the larger majority of folks who live their lives in chronic financial distress, do so because of 'splurge today and let tomorrow take care of itself' lifestyles. Along these lines, there is an old axiom that says 'If all wealth were evenly distributed among all people, it would probably not take very long for it to all shift back to its previous ownership.'
I'll admit that I was thinking more about those who spend their lives 'living beyond their means' and then bemoan their lack of savings ... and/or their inability to weather even a nominal financial, health or other unforeseen storm. Further, I acknowledge that most of us know of anecdotal situations where folks lost everything due to no fault of their own. --But, these are exceptions, rather than the rule.
I believe that the larger majority of folks who live their lives in chronic financial distress, do so because of 'splurge today and let tomorrow take care of itself' lifestyles.
While some of what you say is true, I doubt your "larger majority." We are in a microcosm of wealth here on CD. It is not like that in the real world in cities and towns all across the country. It is naive of those who are well off to think this two-dimensional way. Your ideas may have been more true in our parents' day, but even then it would be a stretch to assume that. Saving does not necessarily equate with security in older age, or any age. It is commendable and wise, nevertheless.
I'm not a religious person but this biblical adage "There, but for the grace of God, go I." comes to mind. I married an ambitious man, we saved, and we were lucky in health. It could've gone any which way. Seniors who have planned well have had their pensions pulled out from under them. Seniors who haven't planned at all received inheritances. There's no rhyme or reason. Every morning I open my eyes and thank the universe for my good fortune. Sometimes that's about what it comes down to... luck.
Bad luck happens a lot and I think much of this "poor planning" or "spending beyond your means" is a myth spread by people who tend to be insensitive to others.
Our generation was and is a generation of savers for the most part. Our parents were children of the Depression and I hope and think we learned from them. We learned to save, and if things still went wrong, we learned to cope by being frugal.
When I was in a dual income marriage I still didn't overspend and splurge-- because I had learned at a young age about finances. We learned in school and we learned from our parents. Loss of money was about health issues, death, or divorce, not silly "poor planning." I heard about loss of wealth in my own family--not due to wrong planning but due to death of a spouse and the Depression. Fortunately the people knew how to cope!
Those who flaunt their wealth and brag about how much they paid for things, do so in poor taste and probably a smattering of smugness. Luckily for them, disaster apparently did not intrude into their lives.
Saving little can be a result of laziness and overconsumption, of course. There are a dozen other very good reasons why retirees would have little saved, or have their savings used up. It's a complex human story, not a simple one.
Very true and very dependent on ones situation. Not all in trouble should be kicked to the gutter as many that are not in trouble advocate.
There is an old expression like no one stands taller then one who stoops to help others.
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