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View Diary: US already has high elder poverty rate, so why are Social Security cuts even on the table? (223 comments)

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  •  Housing situation will only make this worse. (7+ / 0-)

    I look back at my grandparents and they all had pretty comfortable retirements. During their working lives they all had average middle class incomes. None went to college.

    My maternal grandfather had a pension from GE. My paternal grandmother had a modest survivor's benefit from her husband's IBEW pension. For both, their largest source of income during retirement was still Social Security.

    The one thing that made a decent retirement possible on modest savings and income is that they paid off their mortgages long before they turned 65. In fact, paying off the mortgage in their 50s enabled much of the cash savings they were able to accumulate.

    I have to wonder, how many boomers are approaching retirement and still have 10 or 15 years left on their mortgage? The average monthly SS benefit is about $1,260. Deduct $110 off the top for Medicare premiums. How in the world does someone make a mortgage payment on that and have enough left to eat and keep the lights on?

    Even if benefits stay right where they are I don't see how the poverty rate among the elderly continues to go down over the next couple of decades.

    Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. - Groucho Marx

    by Joe Bob on Mon Jan 14, 2013 at 10:43:26 PM PST

    •  That's one unfortunate outcome (6+ / 0-)

      of all the refinancing that's happened over the years. Whenever you take out a new mortgage you go back to all of your payments going to interest and none to principal, and if you take out another 30-year loan then you push back the date when you will actually own the house.

      People considering refinancing have not been encouraged to consider this. It one more instance of widespread bad financial advice.

      We decided to move the center farther to the right by starting the whole debate from a far-right position to begin with. - Former House Majority Leader Tom DeLay

      by denise b on Tue Jan 15, 2013 at 12:44:44 AM PST

      [ Parent ]

    •  Joe Bob has just stated one of teh reasons Rs (3+ / 0-)

      cannot stand unions - all those pension plans on which people Rs don't want having anything at all and wish didn't even exist, can survive until they cross over.

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