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Interesting observation of seniors saving money

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  • Interesting observation of seniors saving money

    Last week, I gave a lady a ride to and from a CPR class I was teaching at the senior center. It was a free demonstration type of class, where they did not earn cards. I like to do those at the senior centers in my area every year and I know a good number of those people can't afford the class, but are very capable and eager to learn the skills. I normally have a very good turnout.

    After I took her home, she invited me into her "quad" (as she called it) for pie and hot tea. She lives in an interesting brick building her son built years ago, all handicapped accessable. Orginally it was an office building, then the ambulance district and fire department used it for sleeping quarters, but since it has been remolded into the following.

    You enter into a entryway. Off of the entryway to the left is a laundry room with 2 washers and 2 dryers. To the right is a large walk in closet.

    From the entryway, you enter a large living room, behind it is a large dining area, then the kitchen. Off of this are doors leading to a full bath, then a music room where their is a piano and a few other instruments such as guitars hanging on the way, there is a library with lots of books and 2 computers.

    There were also 4 bedrooms, each with a little sitting area and a private full bath.

    On the outside I could see a two car garage on eitherside of the building that opened on either side of the kitchen through a doorway. The back of the "quad" had a large 3 season room and in the back yard were raised garden beds.

    She has 3 roommates here, but said she has had more in the past, when some of the bedrooms had two double beds.

    She said it was the only way that she and her room mates could survive on low incomes. Her son owns the building, but it is paid for. They do pay the son $200 per person per month (cheaper than rent), so that he can pay the insurance on it and taxes. The utilities they split evenly (electric and propane--building is on a well, as most in town are). They also split the internet, newspaper and grocery bill. Her monthly expenses for all of this add up to around $425 if they run A/C or heat, and much less in mild months when they run neither.

    Two of the residents have cars, but in this small town they usually walk except for winter time or rainy weather. Only place to go in town are all in walking distance, and they do drive to the grocery store. (This town population is 394)

    They had no cable or dish-said they didn't want to spend money on it, but they do have net-flix which is cheaper and they split that. I noticed a lot of videos (cards and board games also) in their "library" and each bedroom had a tv in it as well.

    I just found it unusual--you think of having a roommate more for the younger people, not those who are seniors (I guess I had a flashback to the tv show Golden Girls). She is 82. the oldest is 92 and the youngest was 80. It was a very nice set up. She said all of them technically qualified for government assistance, but with the set up they have, they don't need it, thus possibly saving it for someone who needed it more. They all look after each other and seem to get along fine.

  • #2
    Amazing. Exactly my point about people living on off SS. If you think it's luxury it's not when the average SS is $1k/month. That's for everything. So not saving a penny during working years then living on that is not exactly a perfect lifestyle.
    LivingAlmostLarge Blog

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    • #3
      It's amazing that they are able to make it work. Did they seem happy with their lifestyle?
      Brian

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      • #4
        That _is_ interesting. Sounds unusual. I know there are seniors who live very sparely in tiny apartments in my neighborhood, but by themselves as far as I know. At least some don't have cars. Lately, I've seen one woman walking to and from the grocery with a walker. I see others walking healthily unassisted and sometimes at a fast clip! Health in old age is different from person to person, of course.

        LAL, these people mom-from-missouri describes are of my parents' generation, so I won't jump to the conclusion that they were profligate spenders. My mother, who will be 85 next month, was born in 1927, 7 years after women got the right to vote. She was 2 when the Depression hit, and started high school in 1941. She did work during high school and continued working until 1953 when her first child was born. I estimate she got in 7 years of work, most of it parttime, before she had children. That included while she was at college for 2 years. As men returned from World War II, there was pressure for women to give up their jobs to men. My mother's earning were not high in those years anyway, so her Social security credits would not have been much. (My father's SS is minimal, too, as he mostly was a SS exempt local government employee. They are long divorced, so incomes are not combined.)

        In 1969 my mother returned to work, full time until age 67. I can assure you, my mother was as super frugal as anyone could be. Her earnings continued to be really low and I am sure she faced sex discrimination. You might be too young to realize how prevalent that was. It tended to mean women worked for low wages, women were passed over for promotions, women were not hired in the first place in many places...(and more stuff). Women were generally poorly paid so they had less to use both for living and saving. And they metered only small credits with social security, especially if they did not work for several years of their lives (such as when children were young. I do rememeber all these being issues for my Mom, and even as a child I was quite aware of the unfairness and the toll it took on my mother, and well on the whole family.

        Women like this might be champions at living frugally, yet still have been able to save very little. I know that is my mother's case. She lives on about $700 a month SS and her only savings is from the sale of a very, very modest house. She moved into a studio apartment a few years ago and pays market rate for that.
        "There is some ontological doubt as to whether it may even be possible in principle to nail down these things in the universe we're given to study." --text msg from my kid

        "It is easier to build strong children than to repair broken men." --Frederick Douglass

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        • #5
          Joan, not judging rather defending people who think SS is a waste of money. Think that people want to live only off SS? Nope. My grandmother does and it's less than $1k/month. Only after my grandfather died, before he died it was $1200/month for two people. They typically don't even have to file income taxes.

          They were not educated and didn't work really union jobs. They worked at bus driver, fruit picker, land surveyor, taking in laundry, sewing, cleaning, etc. They also did not buy a home but rented and thus they had no home to sell to live on later in life.

          I think people picture those as living off SS are lazy, free loading people. What most people don't realize is that living off of SS is a VERY MEAGER lifestyle. It's not EXTRAVAGENT. Not by a long shot.

          For people to actually expect to retire on SS is crazy. You'll likely need help from your family for unexpected expenses that come up. It is not a cushy lifestyle nor was it meant to be.

          SS is more for the poor and the rich DO NOT pay for it, rather it is a tax right now at 4.2%, typically 6.2% for the employee and 6.2% for the employer, up to $106k. how is that taxing the rich? If it were on any amount of income like medicare maybe. But rather the people who need it the most are paying for it equivalent to those who likely don't.

          Being in my 30s, I don't believe SS will ever go away. But I do think that it will become means tested, raised in age withdrawal, and probably we may end up privitizing it. But then what will the poor do?
          LivingAlmostLarge Blog

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          • #6
            I'll bet that living arrangement keeps her healthier too, as it seems she has a better support system than most elderly folks.

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            • #7
              I think this is a great arrangement, even if the folks could afford to rent alone. There’s companionship and safety in having roommates, as well as having others to share the tasks of housekeeping, which become more difficult in old age. How many times have you heard of an older person falling and not being found for hours or days? I wouldn’t be averse to the idea of roommates if I’m widowed when I’m elderly.

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