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re: Why are so many people broke by the time they reach senior adulthood?
Posted on 5/18/25 at 11:33 am to L.A.
Posted on 5/18/25 at 11:33 am to L.A.
quote:
My question is why. You have 65 years to prepare for retirement and you have no savings, can't pay rent, and your only income is SS. How does that happen?
I live in a nice neighborhood and everyone is over 60. No one has financial problems. After visiting with them for over 30 years I can see a formula:
All of them are married. Husband made primary money but wife also worked at lower paying job.
All had 1 or 2 children.
Most are not La. natives. Moved here with company and stayed.
All of them voted for Trump.
90% of them have a dog. Not a single one has a pit bull.
Although we haven't discussed spending habits I'm convinced the key is knowing the difference between a NEED and a WANT. When you're doing well you can take a nice trip to Cancun. When you're having trouble with bills you deny those pleasures. This is a problem with younger generations, too. Especially women.
1
Posted on 5/18/25 at 11:34 am to Powerman
quote:
That's horrible
And the unfortunate reality is medical bills can cripple people financially before they even get to retirement age
And yet the boot lickers will defend our system to the death
I should have added that this couple were very well off before her illness. Very much upper middle class financially. He owned his own business and she worked in the private sector. They did everything right in terms of finances. Lots of savings. Didn't over spend or get into debt. One debilitating, chronic illness wiped them out, He was retirement age when she died. He moved back to Chicago to live with his sister. He didn't say so, but my guess is he could no longer afford to live on his own in California
Posted on 5/18/25 at 11:36 am to Narax
quote:
About 21% of them live with their children (Often in the home they own)
79% of them own their own homes
24% have a mortgage
54% don't have a mortgage
22% are renting
A 2023 survey indicated that 68% of parents have made a financial sacrifice to help their adult children
A 2025 survey found that 50% of parents are helping their adult children offset financial pressures, with an average monthly amount given of $1,474.
Their average income at 65 was $64k Pre Tax $58k Post Tax
Average Social Security is $24k a year
$200k would be gone by 75.
Selling the home if they have it could net another $350k on average. But they would probably clear only $300k.
So if they have a house, by cutting their expenses 20% they could make it to 90.
And that's before inflation, assuming they have a home to sell and no mortgage.
Often they are pressured by their children to not sell the home, as they know that it decreases the inheritance.
Great info. Thanks
Posted on 5/18/25 at 11:36 am to L.A.
quote:How does that even happen? I know the answer but damn!. Kids are gone and the expense of feeding, clothing, educating and car buying are gone. House should be paid off or near so. Just a little bit of planning and working your arse off to advance your career(s) and not eating at a 5* once a week and one should be flush. Affordable housing is their problem and not a prop from government.
Why are so many people broke by the time they reach senior adulthood?
Posted on 5/18/25 at 11:36 am to L.A.
Pretty much it's the bills... I just got my homeowners and in the last two years it had doubled and the hurricane deductible has more than doubled... My energy bill has gone up has gone up 75%... You get the idea... Every bill has gone up quit a bit in the last 3-4 years.. People prepare for retirement using a scale that bills will go up.. But not like this... As it is I am paying $5000+ more a year than 4-5 years ago and that's just me...
Posted on 5/18/25 at 11:37 am to Narax
Defined benefit retirement programs funded by your company were swapped out to 401 k type programs 20 years ago. 401 k type self managed programs expose retirees to a lot more risk and failure
Posted on 5/18/25 at 11:38 am to L.A.
quote:
Evidently a large percentage of people reach senior adulthood with only social security for an income and thus cannot affording housing. How does this happen?
Let’s be honest. A large number of people are completely irresponsible. They spend $20 a day on cigarettes and buy a new truck every 3 years or get a new iPhone every 2 years. They go on family vacations to the beach or mountains twice a year when they don’t have $1000 in their checking account. They blow money on all kinds of impulsive purchases but then say they can’t find any way to save for retirement.
Posted on 5/18/25 at 11:39 am to L.A.
It’s scary when you look at the average retirement savings people have. They just don’t think about it or can’t force themselves to forgo expensive toys in lieu of saving money for later years.
Posted on 5/18/25 at 11:39 am to Powerman
quote:
Our healthcare system might be a good place to start looking
In my previous example I stated inflation on all goods since 2010 is 48%. On healthcare alone Grok estimates 105%. And we know seniors use healthcare a lot more than non-seniors.
Posted on 5/18/25 at 11:39 am to L.A.
Illness, accident, etc...
Until you've had a long term health issue, you'll never realize how much it drains you.
Until you've had a long term health issue, you'll never realize how much it drains you.
Posted on 5/18/25 at 11:41 am to pevetohead
quote:
Everything is more expensive and the wages stay the same. Meanwhile boomers will brag about going on their 5th Caribbean cruise in a year
Actually it’s millennials who take up to 5 vacations per year compared to previous generations who had 1 or 2. I’m not saying things aren’t tough but they always were. The problem often is the next generation wants everything the previous generations had and more and they want it sooner.
Posted on 5/18/25 at 11:41 am to RogerTheShrubber
quote:
Illness, accident, etc... Until you've had a long term health issue, you'll never realize how much it drains you.
I’m sorry this happened to you. It does explain a lot. I will refrain from going after you from now on.
Posted on 5/18/25 at 11:41 am to L.A.
Anyone who reached "senior adulthood" in the recent past or who is about to become a senior, with no catastrophic life events, and is still broke did it to themselves.
They had the late 80s, the 90s, and early 2000s to accumulate wealth, and made bad choices.
They had the late 80s, the 90s, and early 2000s to accumulate wealth, and made bad choices.
This post was edited on 5/18/25 at 11:43 am
Posted on 5/18/25 at 11:43 am to BBONDS25
quote:
I’m sorry this happened to you.
It happened to my grandma, retard. My mother slowly had to sell off land she owned to pay for her Alzheimer's treatments.
You, being a trust funder pretend you werent born on third base... Youve never earned anything.
Posted on 5/18/25 at 11:45 am to Mo Jeaux
Posted on 5/18/25 at 11:45 am to GumboPot
quote:
On healthcare alone Grok estimates 105%. And we know seniors use healthcare a lot more than non-seniors.
Amazing how technological advances make everything but healthcare cheaper isn't it
Posted on 5/18/25 at 11:45 am to L.A.
quote:
A 2023 survey indicated that 68% of parents have made a financial sacrifice to help their adult children
A 2025 survey found that 50% of parents are helping their adult children offset financial pressures, with an average monthly amount given of $1,474.
This is a huge problem
Posted on 5/18/25 at 11:47 am to TigerCoon
quote:
This is a huge problem
Indeed. Most people I know still think they have to support "adult children." They spend their inheritance long before its due.
Posted on 5/18/25 at 11:47 am to L.A.
Ultimately there are a ton of reasons. But ultimately if you don’t have complete disaster befall you, and you live below your means, you will be ok. I have always driven a lesser car than those working for me including in the army. The kid I hired out of college a few years ago bought a $450k house. Most I ever paid was $190k. Basically I don’t do things those around me do. And as a result (including being smart with money management) I am doing far better than I think people around me would suspect.
Posted on 5/18/25 at 11:47 am to L.A.
My generation was focused on other issues....social whatever not the future...
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