People forced to choose between running their home electricity and purchasing needed medications excuse their actions by saying that they live on fixed incomes. A fixed income represents a finite source of monthly sums paid to the individual usually from Social Security, an annuity, or retirement funds. There are no bonuses at Christmas and increases in Medicare costs usually eat up Social Security increases. Many Americans subsist on fixed incomes including young Americans under disability and unable to work.
Making Difficult Choices
People on fixed incomes don’t have the luxury of buying a new car, eating at an up-scale restaurant, or installing expensive electronic devices in their homes. Fixed income folk tend to be older, living in small apartments or retirement communities. Some played the American Dream correctly and in the absence of financial calamity, own their homes free and clear. Others lost their homes, often after remortgaging or refinancing to pay debts or improve the home.
Living on a fixed income means careful budgeting; every penny saved is important. In most such monthly budgets, there is no room for Direct TV, home computers, and a weekly latte at Starbucks. The money is already spent on rent, utilities – which can include gas and electric, necessary groceries, and required medications. Medications not covered by insurance can be prohibitively priced.
Fixed income people may have lost retirement funds during the banking debacle of 2008. They may not live long enough to see their 401K investments, tied to the volatile market, rise again. And so they must make choices. A day trip to a state park may be more affordable than a weekend cruise. Ground beef is cheaper than many good cuts of steak. The inevitable choices impact large and small prices.
Purchasing the Bare Necessities
Fixed incomes also reflect on what basic foods are purchased. Cheaper store brands trump brand names while stores like Dollar Tree and Roses have better prices on necessaries used everyday like soap, shampoo, and home cleaning products. Fixed income people often save for an item that other people might purchase immediately on credit. Unless they can prove that they have large savings accounts or investments, fixed income people have a difficult time obtaining credit.
Some folks on fixed incomes are allowed to work part time. The amount that they will potentially earn will affect their monthly remittance, however. Such questions must be discussed with Social Security representatives. Other fixed income people sell personal possessions on line, often receiving a fraction of the item’s worth but enough to help pay a larger heating bill in the dead of winter. Fixed income people cannot make long term plans and often move in with their adult children. Getting old in America is a curse for many hardworking and well-intentioned people who have always paid their way and saved.
Anatomy of a Fixed Income
A typical retiree may receive $1,700 a month through Social Security added to his $305.00 pension. (amounts vary considerably between seniors; this example is not meant to reflect actual credits and debits but is used to illustrate typical percentages spent) Out of this, he or she is obligated to pay fixed monthly costs:
- Rent: $600
- Electricity: average $65.00
- Natural gas heating: an average of $76.00 a month
- Health Insurance: $407.00 per month
- Dental Insurance: $49.99 per month
- Automobile and property Insurance: $72.00 per month
- Medications and co-pay each month: $85.00 or more
This leaves $746 for groceries, gasoline, any small bills outstanding, a computer, and a telephone (land line or less-expensive no-frills cell phone).
Many retirees, however, receive much less that $2,000. Some live in group homes to minimize costs but give up privacy and the sense of self-controlling their destinies. The truly ill seniors languish in convalescent and retirement homes that may be partially staffed with local Community College kids seeking nursing certifications. Good homes usually require more money than fixed income people have available.
Alternative Living
Fixed income people have seen their dreams fall by the wayside. As noble as the Make-a-Wish Foundation is for sick children, a similar program should cater to those fixed income elderly that through no fault of their own missed a chief goal of their American Dream, whether that was to see a play on Broadway or spend a day on the beach at Daytona.
A retired neighbor on a fixed income carries her empty sacks several times a week to the local grocer two miles away in rain or shine. She owns no car and there is no available public transportation. Some communities provide assistance through local social service departments under the listing "senior services," but funding cuts in many states have impacted the extent of services provided.
Fixed income people plant their gardens when they can and bond with neighbors that are also struggling. They worked all of their lives and may have lost investments getting to the golden years. But their welfare must be augmented by a stronger Social Security reform program and greater care coming from their children and younger family members. A large part of care, however, involves a general understanding of what constitutes a "fixed income."
Sources:
- Discussions with retired neighbors, part-timer senior workers, and touring two local retirement facilities
- Medical discussions with area pharmacists and RN’s
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