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I think we have mentioned before that a lot of those frequenting this Retirement board for the most part have made some really good choices as far as financially taking the right path to achieve financial stability in retirement.
That being said my house is our own, I have a small pension, I am collecting SS and we have a 401k that we are trying not to dip into and yet inflation is in fact eating into our budget.
My SS Cola and Pension Cola have for the most part been negated by increases in food, home owners insurance, taxes, cost of services, etc.
Are we going to the poor house, no but I do know several friends and acquaintances with family and friends that do indeed live on the edge with just SS and they struggle to maintain.
I don’t believe in conspiracy’s but while it maybe true I don’t necessarily believe the IRS or any other representative of the government that say that SS is not a sole source of retirement income for that many Americans.
These are the same people telling you SS is going to run out unless they reduce the benefit or increase the age in which to collect SS.
We boomers were the last generation to really reap the rewards of retiring with pensions. If the spending and saving habits of those younger than us don’t change then I foresee more and more people in the future relying on SS into retirement.
The percentage of private employers that offered traditional pensions fell from 35% in the early 1990s to 18% in 2011 and to 15% in 2022, according to the Bureau of Labor Statistics. On the other hand, about 86% of government workers have access to a pension.
it was really my dads generation where pensions were common in private businesses,not mine , i am a boomer
Last edited by mathjak107; 12-12-2023 at 01:54 AM..
I am not talking about somewhat discretionary items, but about bills you must pay.
I was shocked to see our year-end property tax bill -- $1100 higher, which means an increase of about $92 per month. Car insurance about $50 higher for a six-month premium, meaning a monthly increase of about $8.00. House insurance about $250 a year higher, which means an monthly increase of about $21.00. Medicare Part B increases totaled $20.00 for both of us. So our recent "no leeway" charges -- unless we revise our insurance policies -- total an extra $141.00 (about) per month, while our SS increase is about $145.00 -- so a whopping $4.00 extra for somewhat discretionary expenses such as food and car gas. WOO-HOO!
But at least we can afford the increased costs (for which I am grateful). but I swear I don't know how many other people can afford inflationary increases -- especially those who are living on Social Security alone!
So, how does your increased COLA payment compare to the increase in your bills?
My health insurance premium actually DECREASED (!?!) by a few $ per month :-). That surely wasn't expected :-). My property tax on a condo in one city (San Francisco, where property values are falling, like all other values including particularly the value of human life) had decreased too in 2023, and went up by just a few $ total this year (though a massive increase is planned next year). Most other bills went up a little, likewise. I am not taking soc security yet, but I expect bills will go up every year (I factored 4% annual increase in my budget planning during retirement years), and will not be covered by soc security (if I even get soc security... they could decide to means-test it to death). I can accommodate reasonable increases (which to me means up to 4% per year) without any soc security; if something goes up horrendously (like $10,000 annual punitive tax on pied a terre condo in San Francisco, to be added to current already high tax in 2026), then I'll be forced to sell (or stop doing) whatever is causing the bill which I no longer can or want to pay.
To deal with the federal government’s debt problem, one of the ideas being floated is a structured devaluation of the dollar. It would be quite positive for working folks, especially those at companies selling goods in the export markets. Retired Americans on fixed incomes would be slammed as prices increase dramatically with no wage increases to offset the changes.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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My SS increase was about 1/4 of the increase in property tax ($1,200). Not a problem since I'm still working until spring, but after that, with SS and our pensions and savings we will have to sell and downsize to a less expensive area. The property tax at $11,000, home insurance $3,000 and other high costs here will force us out. Of course we don't need this big house any more anyway and with our equity after 30 years here we can pay cash for the next place and have a few hundred k left over.
Back in the dawn of the personal computer age, one of my first jobs out of grad school was to educate congressmen & congressional staffers about these new-fangled things called "Personal Computers" and why they might be useful as something more than a glorified typewriter for secretaries.
So, we modeled the US Social Security System, and we designed software to allow the congressmen & staffers (mostly staffers) to input all the variables of the system: revenue inflows, transfer payments out, COLAs, demographic data and the like...
... and then press a button to calculate & print out fancy charts about the economic health of the Social Security System...
... and then the shock, horror, and disbelief set in as they saw the Social Security System would go belly up in the future.
Then, we had the congressmen & staffers adjust all the various parameters of the system (within reason), and calculate & print out fancy charts about the economic health of the SS system given revised assumptions about things like retirement age, COLAs, premium increases, etc etc etc...
... and Shock! Horror! Disbelief! The system would still go belly up but farther in the future.
The end result? Some congressmen & staffers learned a thing or two about computers, and maybe about the SS system, but nothing changed in the real world.
So, at age 22, I decided to plan my future assuming SS would not be there for me. If it were, great, but I needed to plan for it not being there for me. So, I planned and then implemented my plan, semi-retiring at 40 and fully retiring a few years later.
So, at age 22, I decided to plan my future assuming SS would not be there for me. If it were, great, but I needed to plan for it not being there for me. So, I planned and then implemented my plan, semi-retiring at 40 and fully retiring a few years later.
I also planned the same way...as if SS would not be there.
I retired at 54. SS was still there when I hit 62 and so took it but it's icing on the cake for me.
Whenever the government has money woes (the reoccurring "we need more money") the first thing they want to cut is SS. This threat doesn't phase me at all.
If they cut SS tomorrow I'm still ok because I made my plans without that being in the picture.
To deal with the federal government’s debt problem, one of the ideas being floated is a structured devaluation of the dollar. It would be quite positive for working folks, especially those at companies selling goods in the export markets. Retired Americans on fixed incomes would be slammed as prices increase dramatically with no wage increases to offset the changes.
While it would be good for the economy to increase exports and decrease dependence on (cheap) imports, the US probably can't afford that course. Besides retired Americans on fixed incomes, there are 57 million Americans of all ages who live on welfare, ie, at least 1 in 5 Americans could not afford the prices.
I understood you and appreciate your concern of what many seniors are going through around the country.
There are ways to save, programs to help, sacrifices that need to be made. But you are right in your concern, many seniors are having/are in trouble financially. The cost of living has jumped dramatically.
It's a shame to see those who truly don't have an opportunity to change their plight have these issues in the final phase of their lives. This is where we as humans can volunteer and help, because we see the government will only do so much (that's all I'll say to keep this from being political).
If there is any silver lining, and there really isn't for those in need, is that the younger ones who have a chance to help themselves will see what lack of planning and saving for the future will do to them. At the end of the day, the only hero in a cape coming to save them is in the mirror.
From this end of the retirement spectrum ( my husband and I have been retired for 13, and 12 years respectively), I'd say that in general, planning and preparing be as debt free as possible in retirement was the best thing we could have done for ourselves. I know that's not the only way to prepare for retirement, and financial planning is essential to ensure some income flow and survival of unexpected issues in one's golden years, but as I see it, not having to shell out a significant portion of one's retirement income for hefty mortgage payments ( or rent) vehicle, credit card payments makes retirees, regardless of income more able to weather the consequences of inflation, emergencies and other things that eat into our resources.
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