The slow death of Social Security is concerning for all, but most of all, it is concerning for those who depend on it to survive. We have written a myriad of articles about the demise of the program by 2035 at the latest in its current state, but the reality is that it is not a political issue to be debated on both sides of the isle, it is a humanitarian issue at this point and it affects real people.
Like Virginia Hambrick, a 66-year-old retiree, who is facing the prospect of having to return to work. Her savings have been exhausted, and her monthly Social Security check of $1,625 falls far short of covering the expenses for herself and her husband. The couple resides in a rural area approximately 50 miles from Tulsa, Oklahoma and before claiming benefits, Hambrick had a lengthy career in the manufacturing and hospitality sectors, retiring in the early 2010s with only modest savings. Her husband, who has spent the past several years caring for ill relatives, does not have an income and will not receive Social Security benefits until he reaches at least 62, as he is currently 57.
Hambrick is in desperate need of additional income. Each day, she struggles to gather enough food and finds herself overwhelmed by a constant stream of bills. Even if she were to find employment, she doubts her ability to maintain it due to her financial constraints; she cannot afford a car or gas to commute, and she finds it physically challenging to stand for extended periods, making retail or food service jobs untenable.
In an interview with Business Insider, Mrs. Hambrick states “If somebody wants to work around my limitations, then they would have a totally dedicated employee.”
The reality of living on Social Security
She is not the only one, many American baby boomers walk the same financial tightrope as millions of older adults are lacking the savings or assets to sustain themselves post-retirement. A survey by Northwestern Mutual revealed that US adults believe they need about $1.5 million to retire comfortably, a figure that could be even higher in expensive cities. However, a significant gap exists between this expectation and reality. According to an April report by the Retirement Income Institute, 52% of boomers have $250,000 or less in retirement assets. The Census Bureau’s Current Population Survey indicates that over half of Americans aged 65 and older have an annual income of $30,000 or less, pushing many close to the federal poverty line and of course coming nowhere near the desired amount.
With meager savings, mounting debt, and few assets, many older adults are entirely reliant on their monthly Social Security checks. However, for many, this is insufficient.
Other cases of interest
Another case is that of Mary Dacus, 69, who expected to have a savings account at this stage in life. She and her husband, Stephen, managed comfortably for a few years after retiring but now face financial hardship due to depleted retirement funds and rising costs. Living in Robinson, Illinois, on a combined monthly Social Security income of $2,140, they have no emergency savings and are nearly $10,000 in debt from covering their expenses on credit. They frequently resort to food pantries, as their $23 monthly SNAP benefits barely cover one meal. On top of that, Mrs. Dacus worries that Stephen’s recent cancer diagnosis could have devastating financial consequences since they lack Medicaid, and Medicare does not cover long-term treatment. Social Security cuts projected in the next decade add to their anxiety. “It scares us to death because we’ll still be here, God-willing. How are we to survive? […] A lot of people think that, with Social Security, you get this big check, and you can move to Florida, and you could buy a boat and go fishing. That’s not what it is.”
While some retirees feel financially secure due to robust 401(k) matches or wise investments, many struggle.
Angela Babin, 62, who lives alone in a mobile home in Houma, Louisiana, on $1,104 a month from Social Security is also on the precipice. Her savings were lost in a divorce 16 years ago, and health issues forced her to stop working earlier than planned. Living paycheck to paycheck, Babin finds it difficult to afford food, car expenses, or utility bills. Her home, severely damaged by Hurricane Ida three years ago, remains unrepaired due to insufficient state emergency funds. “I don’t want to be rich; I just need to be comfortable. I just want to know that I can have food when I need it and a nice roof over my head.”
Despite her low income, Babin finds it hard to qualify for government assistance. Programs like Temporary Assistance for Needy Families and certain tax credits are designed for parents with dependent children, leaving older adults like her with limited options and she frequently worries about having enough to eat; the $28 monthly SNAP benefit barely covers essentials.
These narratives highlight the precarious situation many baby boomers face in retirement. Hambrick, Dacus, and Babin all believed they were living within their means, yet find themselves struggling due to insufficient government assistance, inadequate Social Security benefits, and a lack of savings.
Source: The struggle of retirees living on Social Security Benefits – $1000 a month
