Re:40% of the American middle class face poverty in retireme...
by drb91 on Monday October 15, 2018 @03:10AM
(#18217935)
$17k is actually pretty good for a single person compared to many in this country. Try feeding four people on $20k a year. I know people who work three jobs (not all paid!) for $10k a year--they aren't homeless ONLY because they have a social safety net. Mind you, these are employable people in places without good jobs because of a general lack of remote work for no reason.
Nonetheless, the federal poverty line definition has no rational connection at all to what realistically constitutes a livable income. Just like your mother would be fucked if anything happened to her and she didn't have her social net (you, presumably).
Re:40% of the American middle class face poverty in retireme...
by murukesh_s on Monday October 15, 2018 @12:55AM
(#18217462)
Post-tax income of $1,400. Is it pension? is the pension taxed?
Re:40% of the American middle class face poverty in retireme...
by paulgrant999 on Monday October 15, 2018 @02:41AM
(#18217844)
now picture tomorrow her condo floods and the car gets t-boned.
Whats that do to her budget?
Re:40% of the American middle class face poverty in retireme...
by WhiteSource1 on Monday October 15, 2018 @03:12AM
(#18217942)
That's what insurance is for.
Re:40% of the American middle class face poverty in retireme...
by paulgrant999 on Monday October 15, 2018 @11:04PM
(#18226066)
You didn't mention it in your budget; presumably therefore, she has none.
You did mention health insurance, however.
I’m not sure being under the federal poverty line (or 2x cutoff as this article used) means the same thing at retirement age.
My mother, for example, has a monthly post-tax income of $1,400 or just under $17,000 per year. She must be poor right?
However, she owns her home outright. So her total reoccurring monthly expenses are around $1,200. That includes property tax, condo fees, health insurance premium, food and gas for the car. She has a very comfortable life. She would certainly not call herself poor.
She can basically live off her pension without touching the equity in her home or the savings she has (unless it’s for something important like travel).
A lot of people in retirement are no longer relying on income, instead they are taking money out of savings as well. Not sure if this paper accounted for that.