Can a Senior Survive on Social Security Alone?

Can a Senior Survive on Social Security Alone?

I read a USA Today article about a senior citizen woman who was evicted from her apartment and tragically found dead shortly after becoming homeless. The author, who had previously written about this woman and highlighted her desperate situation, was understandably shocked by her tragic outcome. This case sadly illustrates how slow and burdened by red tape support services can be.

Considering that this senior citizen relied solely on her Social Security income of $1800 per month, it begs the question: is it even possible to survive on that amount in the United States today? The cost of living varies significantly across the country, but in many areas, $1800 would not be sufficient to cover basic necessities like rent, food, and healthcare.

According to the U.S. Census Bureau, there are approximately 76.4 million baby boomers (born between 1946-1964) in the United States.  This is alarming considering that studies indicate that roughly a third of baby boomers consider Social Security their primary source of retirement income

This is a very basic breakdown of how a senior could potentially live on $1800 a month, keeping in mind this is a very simplified example and actual costs will vary significantly based on location, lifestyle, and individual needs:

Monthly Social Security Survival Budget Example:

  • Housing: $800
    • This could cover rent for a small apartment, a room in a shared living situation, or subsidized housing.
    • Location ideas:

Parts of Texas:

      • San Antonio: Known for its mild winters and affordable housing options.
      • Austin: While rent is rising, some areas still offer decent affordability.
      • El Paso: High desert climate with mild winters and generally lower cost of living.

Florida (outside major cities):

        • Gainesville: Home to the University of Florida, but with some more affordable areas.   
        • Tallahassee: State capital with a more laid-back vibe and potentially lower rent.   
        • Pensacola: Located on the Gulf Coast, with a mix of coastal and inland areas.
  • Food: $400
    • Includes groceries, occasional dining out.
    • Cost-Saving Tips:
      • Meal Planning: Reduces waste and impulse buys.
      • Bulk Buying: Stock up on non-perishables. Lots of Boomers were the original Hippies – buying boxes of produce from CSAs or bulk buying from Costco and Sams is a great way to share the cost of food and lower prices without sacrificing quality.
      • Cooking at Home: Cheaper and often healthier than eating out.
      • Senior Discounts: Utilize discounts at grocery stores and restaurants.
  • Utilities: $150
    • Includes electricity, gas, water, and internet.
    • Cost-Saving Tips:
      • Energy Efficiency: Use energy-efficient appliances and lighting.
      • Lower Thermostat: In winter, and raise it in summer when possible.
      • Unplug electronics: When not in use.
      • Shared Internet: If neighboring units can share an internet hub then it would be more cost effective.
  • Transportation: $100
    • Includes bus passes, gas, or ride-sharing.
    • Cost-Saving Tips:
      • Walk or bike: When possible.
      • Utilize public transportation
      • Carpool or rideshare
  • Healthcare: $150
    • Includes prescriptions, doctor visits, over-the-counter medications.
    • Cost-Saving Tips:
      • Medicare/Medicaid: Utilize government health insurance programs.
      • Generic medications: Often significantly cheaper than brand-name.
      • Prescription discount cards: Pharmacists are great resource for knowing which cards save the most money.  Sign up for as many as possible, as money is left on the table without these cost saving discounts.
  • Personal Care: $50
    • Includes toiletries, hygiene products, clothing.
    • Cost-Saving Tips:
      • Shop during sales:
      • Buy in bulk when possible.
      • Consider thrift stores
  • Entertainment/Social: $100
    • Includes hobbies, books, movies, social activities.
    • Cost-Saving Tips:
      • Free activities: Parks, libraries, community events.
      • Discount programs: Senior discounts at museums, theaters, etc.

Important Considerations:

  • Location: Cost of living varies drastically. Rural areas are generally more affordable than cities. Seniors typically gravitate towards milder climates as they are more comfortable.
  • Healthcare Needs: Unexpected medical expenses can significantly impact budget.
  • Income Sources: Social Security, pensions, part-time work, etc.
  • Emergency Fund: Essential for unexpected expenses (car repairs, home maintenance).
  • Government Assistance Programs:
    • Supplemental Security Income (SSI)
    • Food Stamps (SNAP)
    • Medicaid
    • Low-Income Housing Assistance

Disclaimer: This is a simplified example. It’s crucial to create a personalized budget based on individual circumstances and local costs.

It’s highly recommended to consult with a financial advisor or social worker for personalized guidance on budgeting and accessing available resources for seniors.

Please note: This information is for general knowledge and guidance only and does not constitute financial or legal advice.