What really happens to people who run out of their money in retirement

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Shallowpockets
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What really happens to people who run out of their money in retirement

Post by Shallowpockets » Thu Jul 21, 2016 12:55 pm

If you run out of money and you are 85-90 years old, what really happens?
Maybe you are in your house or assisted living, or an apartment. No more money and how does it go? Maybe no family. Do you end up on the streets? Eating dog food?
When I was working (ER) I saw many homeless people come in but never anyone in their 80s.

We all have this fear of running out of money. What are the real world consequences. Do the people not end up on the street? It seems not to be true. So what happens?
Many people at that age may not even have all their faculties intact.
We all save to preempt that sort of situation, but short of not having our life continue in normal comfortable means, we might have to do with a less than an optimal lifestyle. Not the end of the world.

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Re: What really happens to people who run out of their money in retirement

Post by sperry8 » Thu Jul 21, 2016 1:05 pm

Food stamps, medicaid, social security. Move to a State with low rental costs and live using those means.
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HomerJ
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Re: What really happens to people who run out of their money in retirement

Post by HomerJ » Thu Jul 21, 2016 1:14 pm

Buy a SPIA before you run out of money...

At 85, you can get something like 14% for life.

So if your plan is doing terrible, and you only have $200,000 left of your original $1 million, you could buy a SPIA that would pay $28,000 a year (and then add in Social Security)

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Re: What really happens to people who run out of their money in retirement

Post by Teague » Thu Jul 21, 2016 1:20 pm

I would imagine folks incrementally decrease their spending as their assets become depleted, rather than continue spending full steam ahead until they wind up penniless.
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HomerJ
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Re: What really happens to people who run out of their money in retirement

Post by HomerJ » Thu Jul 21, 2016 1:23 pm

Teague wrote:I would imagine folks incrementally decrease their spending as their assets become depleted, rather than continue spending full steam ahead until they wind up penniless.


Heh, that too...

First, you take less vacations, then you eat out less, etc. Sell the house and downsize, etc. For most of us here, there's probably a decent amount of discretionary spending that can be cut if needed.

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Re: What really happens to people who run out of their money in retirement

Post by countofmc » Thu Jul 21, 2016 1:24 pm

Not being flippant, but they are probably dead. Average life expectancy is still a tad under 80, so you might not see a lot of homeless people in their 80s since there aren't THAT many people in their 80s to begin with.

I would imagine folks of limited means that may be in a situation to run out of money in retirement or have no social ties that would be able to help them out also tend to be on the shorter end of the actuarial table as well.

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Re: What really happens to people who run out of their money in retirement

Post by jebmke » Thu Jul 21, 2016 1:26 pm

Some of them move in with their children or siblings. Many of my TaxAide clients had little money to begin with and are living off of social security, modest pensions (in some cases), and part-time jobs.
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Re: What really happens to people who run out of their money in retirement

Post by scone » Thu Jul 21, 2016 1:32 pm

What happens if you have Alzheimer's, no family, and no money?
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Re: What really happens to people who run out of their money in retirement

Post by Da5id » Thu Jul 21, 2016 1:33 pm

scone wrote:What happens if you have Alzheimer's, no family, and no money?


Nursing home paid by Medicaid...

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Re: What really happens to people who run out of their money in retirement

Post by Katietsu » Thu Jul 21, 2016 1:33 pm

If you are still able to live alone, you move into senior citizen subsidized housing. Your rent is capped at 1/3 of your income and includes utilities. You sign up for Medicare "extra help" and PACE which takes care of your medical costs. You sign up for free or reduced cost meal delivery or meals at the Senior Center. You sign up for free transportation to the Senior Center and doctors' appointments. Now you have got food, shelter and healthcare, and essential transportation taken care of. You sign up for SafeLink for free phone service. Most facilities also have social workers and volunteers to provide activity programs.

In the next stage, there are a limited number of programs that can provide housekeeping and caregiving or subsidize assisted living.

Finally, you end up on Medicaid in a nursing home. Your lack of funds may reduce your options for more moderate assistance and lead you to the home sooner than otherwise.

But, yes, our safety net for seniors exceeds that for the rest of the population.
Last edited by Katietsu on Thu Jul 21, 2016 1:36 pm, edited 1 time in total.

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Re: What really happens to people who run out of their money in retirement

Post by Peter Foley » Thu Jul 21, 2016 1:36 pm

countofmc wrote:

Not being flippant, but they are probably dead. Average life expectancy is still a tad under 80, so you might not see a lot of homeless people in their 80s since there aren't THAT many people in their 80s to begin with.

I would imagine folks of limited means that may be in a situation to run out of money in retirement or have no social ties that would be able to help them out also tend to be on the shorter end of the actuarial table as well.


Not flippant at all if you consider the life expectancy of different demographic groups. Someone may have looked at life expectancy by income group - that would be of interest as well.

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Mel Lindauer
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Re: What really happens to people who run out of their money in retirement

Post by Mel Lindauer » Thu Jul 21, 2016 1:40 pm

And don't forget that a reverse mortgage is an option that can help.
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Re: What really happens to people who run out of their money in retirement

Post by tampaite » Thu Jul 21, 2016 1:42 pm

Shallowpockets wrote:If you run out of money and you are 85-90 years old, what really happens?
.


You die otherwise, you really need lot of financial and emotional and social support to live that long.

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Re: What really happens to people who run out of their money in retirement

Post by jpelder » Thu Jul 21, 2016 1:43 pm

Peter Foley wrote:countofmc wrote:

Not being flippant, but they are probably dead. Average life expectancy is still a tad under 80, so you might not see a lot of homeless people in their 80s since there aren't THAT many people in their 80s to begin with.

I would imagine folks of limited means that may be in a situation to run out of money in retirement or have no social ties that would be able to help them out also tend to be on the shorter end of the actuarial table as well.


Not flippant at all if you consider the life expectancy of different demographic groups. Someone may have looked at life expectancy by income group - that would be of interest as well.


I've seen the study somewhere, but can't remember where. I believe the top quintile live an average of 10 years longer than the bottom quintile. This is probably from a lifetime of poorer health outcomes

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Re: What really happens to people who run out of their money in retirement

Post by GerryL » Thu Jul 21, 2016 1:44 pm

Elderly people out on the street is what Social Security was created to avoid. People who run through their savings -- or who never had savings -- will have to cut back on many expenses and sometimes dramatically revise their vision of "retirement," but they are unlikely to end up homeless.

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Re: What really happens to people who run out of their money in retirement

Post by LiveSimple » Thu Jul 21, 2016 1:48 pm

Shallowpockets wrote:Eating dog food?


Other options may be cheaper :D

Penut butter and jelly, rice and beans, pasta and marinara, oatmeal, etc

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Re: What really happens to people who run out of their money in retirement

Post by William4u » Thu Jul 21, 2016 1:51 pm

Katietsu wrote:Finally, you end up on Medicaid in a nursing home. Your lack of funds may reduce your options for more moderate assistance and lead you to the home sooner than otherwise.


I met some people who ended up here (no money and in a nursing home paid for by medicaid). It ain't pretty. They aren't as bad as the poor houses in Dickens, but they are bad. Lots of people are strapped down (by doctors orders) in part to make it easier on the poorly paid staff (although it is ostensibly for the "safety of the patient"). Little autonomy, little care, few visitors, a warehousing until death. :(

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Re: What really happens to people who run out of their money in retirement

Post by delamer » Thu Jul 21, 2016 1:58 pm

Peter Foley wrote:countofmc wrote:

Not being flippant, but they are probably dead. Average life expectancy is still a tad under 80, so you might not see a lot of homeless people in their 80s since there aren't THAT many people in their 80s to begin with.

I would imagine folks of limited means that may be in a situation to run out of money in retirement or have no social ties that would be able to help them out also tend to be on the shorter end of the actuarial table as well.


Not flippant at all if you consider the life expectancy of different demographic groups. Someone may have looked at life expectancy by income group - that would be of interest as well.


Lots of reporting on this; it really is amazing how large the gaps are. One article says about the 1/3 of the difference can be attributed to health differences (the poor are more likely to be obese and to be smokers), but the other 2/3's is harder to pin down.

http://news.harvard.edu/gazette/story/2 ... y-matters/

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Re: What really happens to people who run out of their money in retirement

Post by curmudgeon » Thu Jul 21, 2016 2:18 pm

Katietsu wrote:If you are still able to live alone, you move into senior citizen subsidized housing. Your rent is capped at 1/3 of your income and includes utilities. You sign up for Medicare "extra help" and PACE which takes care of your medical costs. You sign up for free or reduced cost meal delivery or meals at the Senior Center. You sign up for free transportation to the Senior Center and doctors' appointments. Now you have got food, shelter and healthcare, and essential transportation taken care of. You sign up for SafeLink for free phone service. Most facilities also have social workers and volunteers to provide activity programs.

In the next stage, there are a limited number of programs that can provide housekeeping and caregiving or subsidize assisted living.

Finally, you end up on Medicaid in a nursing home. Your lack of funds may reduce your options for more moderate assistance and lead you to the home sooner than otherwise.

But, yes, our safety net for seniors exceeds that for the rest of the population.


I think I would call this the theoretical model. In practice it can be much more challenging; long, sometimes multi-year waiting lists for the subsidized housing and transport, difficult to understand bureaucratic processes that seem to go in circles (especially for someone who is not as sharp as they once were). It does work to a reasonable degree, but it can be depressing and frustrating for those that need to fall back on this.

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Re: What really happens to people who run out of their money in retirement

Post by Broken Man 1999 » Thu Jul 21, 2016 2:40 pm

My MIL did the following in her attempt to stay independent:
- Obtained a title loan on her paid off car.
- Secured small loans from a network of old friends.
- Participated in pharmaceutical trials. Result was permanent damage rendering her voice to a low whisper.

We grew concerned when she kept saying everything was OK and that her voice issue was because she was talking too much. Well, talking too much was always in her makeup. :D

After hearing her raspy voice for a couple of weeks, wife traveled to MIL's town and found her very run down. Packed her bags, and brought her to our home.

Put in hospital almost immediately with pneumonia. Also suffered COPD.

Over a few weeks of questioning the true picture of her finances was revealed. She was in debt about $10,000 with only a SS check to live on. Every time she said she had identified everything, she would add someone else to the list of people she owed. :oops:

So, after much arguing she consented to live with wife and me. Even at her worst moment she remained convinced she could live independently. :shock:

She lived with us a bit over three years, I helped her clear up all her debt with a loan which she paid back in total. She died owing about $1000 on her last hospital bill, which she was paying off at a modest amount each month.

The one thing I would tell anyone who has parents that might seem to need help is that in some cases they will lie totally and make up false tales to explain their issues.

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Re: What really happens to people who run out of their money in retirement

Post by tschanks1 » Thu Jul 21, 2016 2:55 pm

Da5id wrote:
scone wrote:What happens if you have Alzheimer's, no family, and no money?


Nursing home paid by Medicaid...


I was a hospice social worker for years, and most people by that time are able to come up with some kind of diagnosis that allows them to go in through the ER, be admitted to the hospital for the requisite 3 days (I guess that's still true, been out of the field awhile), which then allows you to move to a skilled bed in a nursing home to be paid by Medicare, and from there hope to bypass the Medicaid waiting list at a decent nursing home. The truth is most of the staff in hospitals know how to play the game, and honestly do try to help people find the loopholes in the system, and if you can get a hospice diagnosis, then you get better care, in a nursing home or in your own home. But it's a roll of the dice for sure.

The PACE program is also available in some cities, run by the Alexian Brothers, and if you can get into their program, they'll help you stay in your own home, and act basically as your HMO. PACE = Program of All Inclusive Care for the Elderly-- it's a great program if you are not hospice appropriate but need some help, and it's Medicaid and MCR certified.

But yeah, your best bet is to not run out of funds before you can get on a waiting list for a decent place to go, or try to stay in your own home.

Were you asking as a general Q that you want to know, or for a specific person?
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Re: What really happens to people who run out of their money in retirement

Post by Runner01 » Thu Jul 21, 2016 3:14 pm

I can answer this based on someone I know in this situation. The answer is SS, Medicare, SNAP, Lifeline, state "rent rebate" ($500 annual transfer from the state), utility assistance, church pantry, and living with a roommate in a similar situation. I can say that it is not a life I would want to live but the person I know genuinely "made their bed" through a lifetime of poor decisions.

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Re: What really happens to people who run out of their money in retirement

Post by leonard » Thu Jul 21, 2016 3:17 pm

Broken Man 1999 wrote:Every time she said she had identified everything, she would add someone else to the list of people she owed. :oops:
....
The one thing I would tell anyone who has parents that might seem to need help is that in some cases they will lie totally and make up false tales to explain their issues.


This is the most frustrating thing about trying to intervene in situations like this.
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Re: What really happens to people who run out of their money in retirement

Post by alfaspider » Thu Jul 21, 2016 3:18 pm

countofmc wrote:Not being flippant, but they are probably dead. Average life expectancy is still a tad under 80, so you might not see a lot of homeless people in their 80s since there aren't THAT many people in their 80s to begin with.


Life expectancy at birth maybe. A woman who makes it to 65 is expected to live to 85 based on SSA life expectancy tables.

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Re: What really happens to people who run out of their money in retirement

Post by celia » Thu Jul 21, 2016 3:21 pm

Many people live solely on Social Security. It has COLA increases in most years. They make do with what they get.

Yesterday, I "helped" an elderly woman (looked to be 80) sitting in her wheelchair dressed in many layers (probably all her earthly possessions). Her skin was dark and leathery as if she had been exposed to the elements too long. So I assume she was homeless. She has sitting near the driveway of a market with a sign asking for help. I asked her if she wanted to move to the shade as it was hot outside, but she declined. (Many stores here don't want them near their entry.) I bought her some apples, veggies, and crackers while I was in the market. (After I bought them, I wondered if she could/would eat the apples as many of the homeless here no longer have all their teeth.) As I gave them to her, I told her if there was anything she didn't like, she could trade them with others.

There was an upscale juice store in the same shopping center and I heard that an employee from there came out and gave her a drink (water?) while I was in the market.

As we left, DH wondered where she charged the battery for her wheelchair.
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Re: What really happens to people who run out of their money in retirement

Post by michaeljc70 » Thu Jul 21, 2016 3:33 pm

In the case of a family member that is 89, she borrows money from her daughter as needed (which is frequently). Any out of the ordinary expense (repair, replace) she needs to borrow and usually for the property taxes. She owns a house, but that is it. Her daughter will get 1/2 of the house when she passes.

I suppose if she couldn't borrow that money, she would have to sell her house and live in an apartment. Her other expenses are already low, but her Medicare supplement and utilities and food eat up most of her social security.

The 89 year old has said she never expected to live this long. Her parents died in their 50s or 60s.

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Re: What really happens to people who run out of their money in retirement

Post by SouthernCPA » Thu Jul 21, 2016 3:36 pm

I believe you don't see many instances of elderly (80 y/o+) homeless people on the streets because those that started out homeless earlier in life, probably don't live that long. Those that had traditional retirement vehicles, SS, etc just get used to living on a reduced lifestyle as their supply dwindles.

I have no problem with SS as it was setup to be an insurance policy for situations like this. I've seen the finances of many elderly people and I think you'd be surprised at what the reality is for a "nest egg" that a lot of people retire on vs what bogleheads consider adequate. If you hit the boglehead goals, you're going to be more than fine in retirement.

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Re: What really happens to people who run out of their money in retirement

Post by Mel Lindauer » Thu Jul 21, 2016 4:26 pm

michaeljc70 wrote:In the case of a family member that is 89, she borrows money from her daughter as needed (which is frequently). Any out of the ordinary expense (repair, replace) she needs to borrow and usually for the property taxes. She owns a house, but that is it. Her daughter will get 1/2 of the house when she passes.

I suppose if she couldn't borrow that money, she would have to sell her house and live in an apartment. Her other expenses are already low, but her Medicare supplement and utilities and food eat up most of her social security.

The 89 year old has said she never expected to live this long. Her parents died in their 50s or 60s.


As I pointed out earlier in this thread, a reverse mortgage is an option that sounds like it might be an ideal solution here.
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Re: What really happens to people who run out of their money in retirement

Post by BolderBoy » Thu Jul 21, 2016 5:33 pm

scone wrote:What happens if you have Alzheimer's, no family, and no money?

Nursing home with Medicare, Medicaid and SS.
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Re: What really happens to people who run out of their money in retirement

Post by GerryL » Thu Jul 21, 2016 6:04 pm

BolderBoy wrote:
scone wrote:What happens if you have Alzheimer's, no family, and no money?

Nursing home with Medicare, Medicaid and SS.


My mother was a WWII veteran and I was able to get VA benefits for her. Because she had been diagnosed with Alzheimer's and she needed to be in assisted living, the VA granted her the full allowance and not just strictly medical costs. It made a big difference when we eventually had to move her into foster care because foster care providers would prefer to take someone who is not on Medicaid.

The net worth cut off is much higher for VA benefits than it is for Medicaid. This provides more time to deal with all the paperwork and approvals. Not everyone has someone who can run the hurdles for them to get any kind of government assistance.

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Re: What really happens to people who run out of their money in retirement

Post by michaeljc70 » Thu Jul 21, 2016 6:07 pm

Mel Lindauer wrote:
michaeljc70 wrote:In the case of a family member that is 89, she borrows money from her daughter as needed (which is frequently). Any out of the ordinary expense (repair, replace) she needs to borrow and usually for the property taxes. She owns a house, but that is it. Her daughter will get 1/2 of the house when she passes.

I suppose if she couldn't borrow that money, she would have to sell her house and live in an apartment. Her other expenses are already low, but her Medicare supplement and utilities and food eat up most of her social security.

The 89 year old has said she never expected to live this long. Her parents died in their 50s or 60s.


As I pointed out earlier in this thread, a reverse mortgage is an option that sounds like it might be an ideal solution here.


That is an option. They are expensive though. And in this case, we are talking about a woman that never had a credit card, a mortgage or a checking account in her life.

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Re: What really happens to people who run out of their money in retirement

Post by boglegirl » Thu Jul 21, 2016 6:09 pm

LiveSimple wrote:
Shallowpockets wrote:Eating dog food?


Other options may be cheaper :D

Penut butter and jelly, rice and beans, pasta and marinara, oatmeal, etc


I've always wondered why this is a stereotype. Dog food is not that cheap compared to some of the relatively wholesome "human" foods you listed! My dog eats mid-range dry food (e.g. Beneful), and I've always thought I could save $ if I was willing to take the time to make food for him out of rice, veggies, & cheap meat products.

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Re: What really happens to people who run out of their money in retirement

Post by littlebird » Thu Jul 21, 2016 6:37 pm

boglegirl wrote:I've always wondered why this is a stereotype. Dog food is not that cheap compared to some of the relatively wholesome "human" foods you listed! My dog eats mid-range dry food (e.g. Beneful), and I've always thought I could save $ if I was willing to take the time to make food for him out of rice, veggies, & cheap meat products.


During the highly inflationary period of the early 80's when previously adequate pensions became pocket change within a few years, a reporter wrote a story about elders buying canned cat (not dog) food and making "tuna" sandwiches for themselves. In that pre-internet era, it went "viral".

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Re: What really happens to people who run out of their money in retirement

Post by Quark » Thu Jul 21, 2016 7:11 pm

Peter Foley wrote:countofmc wrote:

Not being flippant, but they are probably dead. Average life expectancy is still a tad under 80, so you might not see a lot of homeless people in their 80s since there aren't THAT many people in their 80s to begin with.

I would imagine folks of limited means that may be in a situation to run out of money in retirement or have no social ties that would be able to help them out also tend to be on the shorter end of the actuarial table as well.


Not flippant at all if you consider the life expectancy of different demographic groups. Someone may have looked at life expectancy by income group - that would be of interest as well.

Image

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Re: What really happens to people who run out of their money in retirement

Post by Rodc » Thu Jul 21, 2016 7:50 pm

Quark wrote:
Peter Foley wrote:countofmc wrote:

Not being flippant, but they are probably dead. Average life expectancy is still a tad under 80, so you might not see a lot of homeless people in their 80s since there aren't THAT many people in their 80s to begin with.

I would imagine folks of limited means that may be in a situation to run out of money in retirement or have no social ties that would be able to help them out also tend to be on the shorter end of the actuarial table as well.


Not flippant at all if you consider the life expectancy of different demographic groups. Someone may have looked at life expectancy by income group - that would be of interest as well.

Image


That is a wild graph.

The very low income part is not too surprising, though to some degree may be that low income in part is caused by poor health rather than the reverse (though I bet that causation happens too).

But I am surprised it does not flatten out at 70% or 80% or something.

******************************** Change of topic

I went through a few years with very little money (but lots of time for playing the mountains and by choice so not so bad),and as noted in other posts you can get a lot of calories for little money if you buy a big bag of rice and dry beans.
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Re: What really happens to people who run out of their money in retirement

Post by joe8d » Thu Jul 21, 2016 8:01 pm

What is troubling to me, is the Retirees that get involved in gambling ( Lottery, Casino,s etc. ) at that late stage in life.
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Re: What really happens to people who run out of their money in retirement

Post by Mel Lindauer » Thu Jul 21, 2016 8:17 pm

joe8d wrote:What is troubling to me, is the Retirees that get involved in gambling ( Lottery, Casino,s etc. ) at that late stage in life.


It's really sad, but a number of elderly fall for scams, too.
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Re: What really happens to people who run out of their money in retirement

Post by coachz » Fri Jul 22, 2016 6:36 am

Meds are often the first to go with many costing over $1000 a month.

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Re: What really happens to people who run out of their money in retirement

Post by moghopper » Fri Jul 22, 2016 6:49 am

Da5id wrote:
scone wrote:What happens if you have Alzheimer's, no family, and no money?


Nursing home paid by Medicaid...


What if the nursing home is destroyed by Sharknado?

Silly yes, but we seem to spend a lot of time worrying about the tails of the curve.

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Re: What really happens to people who run out of their money in retirement

Post by Da5id » Fri Jul 22, 2016 6:56 am

moghopper wrote:
Da5id wrote:
scone wrote:What happens if you have Alzheimer's, no family, and no money?


Nursing home paid by Medicaid...


What if the nursing home is destroyed by Sharknado?

Silly yes, but we seem to spend a lot of time worrying about the tails of the curve.


If you think old people running low on money is the tail of the curve, perhaps so for Bogleheads. Lots of folks do in fact have money issues in their waning years, and if they don't have family to help out things go badly (I know people in that boat).

Barefootgirl
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Re: What really happens to people who run out of their money in retirement

Post by Barefootgirl » Fri Jul 22, 2016 8:44 am

Here's one real world example - my grandmother ran out of money around age 90 and needed medical care beyond what her children or grandchildren were able to provide.

She moved into a nursing home, her house was sold and proceeds went to the nursing home. Her SS check goes to the nursing home. My mom gives her money for haircuts and buys her new shoes, clothes, etc.

Anything beyond that, I assume the nursing home is reimbursed by the feds or the state of residience?

I do know that if anything like this were to happen to me, I would ask my children or siblings to put me in this nursing home - all things considered, it's bright, cheerful, well run and the residents are also attended by nursing intern students who bring them a measure of sunshine.

It's in a rural part of the US, near a college, so not sure if that makes a difference.
How many retired people does it take to screw in a lightbulb? Only one, but he takes all day.

Barefootgirl
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Re: What really happens to people who run out of their money in retirement

Post by Barefootgirl » Fri Jul 22, 2016 8:57 am

FYI, there's another popular (or rather, it used to be popular) finance forum where there's a woman in her 60s, with a weak past work history - she seems to have an aversion to staying with any one job for very long, so she appears to survive through government assistance and student loans. I think she's been in college for something like 10 years, taking classes here and there, using student loans to meet living expenses.

If I was a betting person, my bet is the taxpayers will be left holding the bag on that education..as she will live her last years in poverty.
How many retired people does it take to screw in a lightbulb? Only one, but he takes all day.

ERISA Stone
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Re: What really happens to people who run out of their money in retirement

Post by ERISA Stone » Fri Jul 22, 2016 9:00 am

Mel Lindauer wrote:And don't forget that a reverse mortgage is an option that can help.


RIP Fred Thompson.

dbr
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Re: What really happens to people who run out of their money in retirement

Post by dbr » Fri Jul 22, 2016 9:10 am

Good information in many replies. One might note that the number of people who run out of money at 85-90 is miniscule compared to the number that never had any money before that age or ever. The replies talk about how those people have gotten by all along.

Rupert
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Re: What really happens to people who run out of their money in retirement

Post by Rupert » Fri Jul 22, 2016 9:13 am

Barefootgirl wrote:It's in a rural part of the US, near a college, so not sure if that makes a difference.


I believe it does make a difference. If I have to go to a nursing home, I want it to be a rural nursing home. They're better, I think, for two reasons: First, nursing home jobs are still considered good jobs in rural areas. So they attract the best local talent. Not so in urban areas, where the best nurses and aides have more lucrative options. Second, people living in rural areas tend to be surrounded by family, and residents in rural nursing homes tend to be monitored closely by relatives living nearby. Even nursing home residents without family nearby benefit from this extra scrutiny.

oxothuk
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Re: What really happens to people who run out of their money in retirement

Post by oxothuk » Fri Jul 22, 2016 9:18 am

joe8d wrote:What is troubling to me, is the Retirees that get involved in gambling ( Lottery, Casino,s etc. ) at that late stage in life.

Can't remember the details, but there is/was a drug used to treat Parkinson's Disease which affected the brain in such a way as to sometimes induce compulsive gambling in previously careful and sober patients.

magazinewriter
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Joined: Mon Apr 19, 2010 11:39 am

Re: What really happens to people who run out of their money in retirement

Post by magazinewriter » Fri Jul 22, 2016 5:17 pm

celia wrote:Many people live solely on Social Security. It has COLA increases in most years. They make do with what they get.

Yesterday, I "helped" an elderly woman (looked to be 80) sitting in her wheelchair dressed in many layers (probably all her earthly possessions). Her skin was dark and leathery as if she had been exposed to the elements too long. So I assume she was homeless. She has sitting near the driveway of a market with a sign asking for help. I asked her if she wanted to move to the shade as it was hot outside, but she declined. (Many stores here don't want them near their entry.) I bought her some apples, veggies, and crackers while I was in the market. (After I bought them, I wondered if she could/would eat the apples as many of the homeless here no longer have all their teeth.) As I gave them to her, I told her if there was anything she didn't like, she could trade them with others.

There was an upscale juice store in the same shopping center and I heard that an employee from there came out and gave her a drink (water?) while I was in the market.

As we left, DH wondered where she charged the battery for her wheelchair.


You are a good person.

linedog
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Re: What really happens to people who run out of their money in retirement

Post by linedog » Fri Jul 22, 2016 6:49 pm

I saw this quite a bit in my former job. Poor people with little or no education who were never able to get a job that allowed them to save. Some of them also made some bad life decisions. They get their utilities cut off occasionally and mis a few meals every month. There are agencies and programs that will help but the help is limited. Really sad!

littlebird
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Location: Valley of the Sun, AZ

Re: What really happens to people who run out of their money in retirement

Post by littlebird » Fri Jul 22, 2016 8:00 pm

Barefootgirl wrote:Here's one real world example - my grandmother ran out of money around age 90 and needed medical care beyond what her children or grandchildren were able to provide.

She moved into a nursing home, her house was sold and proceeds went to the nursing home. Her SS check goes to the nursing home. My mom gives her money for haircuts and buys her new shoes, clothes, etc.

Anything beyond that, I assume the nursing home is reimbursed by the feds or the state of residence.


Medicaid. That is, "the taxpayers".

reneeh63
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Re: What really happens to people who run out of their money in retirement

Post by reneeh63 » Sun Jul 24, 2016 10:36 am

Katietsu wrote:If you are still able to live alone, you move into senior citizen subsidized housing. Your rent is capped at 1/3 of your income and includes utilities. You sign up for Medicare "extra help" and PACE which takes care of your medical costs. You sign up for free or reduced cost meal delivery or meals at the Senior Center. You sign up for free transportation to the Senior Center and doctors' appointments. Now you have got food, shelter and healthcare, and essential transportation taken care of. You sign up for SafeLink for free phone service. Most facilities also have social workers and volunteers to provide activity programs.

In the next stage, there are a limited number of programs that can provide housekeeping and caregiving or subsidize assisted living.

Finally, you end up on Medicaid in a nursing home. Your lack of funds may reduce your options for more moderate assistance and lead you to the home sooner than otherwise.

But, yes, our safety net for seniors exceeds that for the rest of the population.


There are usually waiting lists for subsidized housing...you're describing the ideal situation but perhaps not reality for most.

My fear is to get old and have dementia set in and not know WTH is going on around me - with no family or partner.

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