my care2
make a difference

community & fun

shares

share your passions, stories, inspirations, and more

Jul 5, 2009

SENIORS MOST AFFECTED BY FINANCIAL CRISIS

July 3rd, 2009
Smart Money

The current economic recession is expected to have a major impact on the way that Americans live for at least a generation. A fundamental shift appears to be underway with individuals seeking to reduce leverage and consume less. 70% of our economy is based upon consumption. For as long as I can remember we have always spent freely and saved very little. Debt was used to finance all major and most minor purchases. Young and old alike both levered up to enjoy the good life. This philosophy worked until the bubble burst in the fall of 2008. The psychological impact of the recession cannot be underestimated. This recession has changed many consumers spending habits forever. Most Americans believe that this economic downturn will have an effect on their quality of life for the foreseeable future.

The people most effected by the financial crisis are senior citizens. Senior citizens rely upon a fixed income to manage their finances and pay their bills. Senior citizens are hurt the most by rising costs because their income doesn't tend to rise with inflation as wages do. Rising medical costs and shrinking retirement plans are creating problems for seniors. The stock market crash of 2008 has forced many senior citizens to reduce their standard of living. Some have resorted to homesharing by taking in roommates to split costs. Many seniors have been forced to come out of retirement and go back to work.

This problem is not just specific to the US alone. "In England a staggering one in five seniors - 2 million people - are now living below the poverty line. An alarming 22 per cent of seniors are skipping meals, and as many as 25 per cent are cutting back on food. In addition, a further 42 per cent are struggling to afford essential items, 41 per cent are reducing the amount of electricity used and 38 per cent are minimising gas consumption. As the rest of the nation struggles with debt during the economic downturn, senior citizens are struggling to maintain basic living conditions." Senior citizens are forced to work longer for survival. In Japan senior citizens are being enticed to return to the workforce as well.

Some financial experts are saying that the new retirement age will be 70 in the future. Due to this economic setback, many people will struggle to have a qualitative retirement that retire at 65. Trillions of dollars of wealth was lost due to the financial meltdowns. IRA's and 401(k)'s saw their value drop in half. Now there is even talk of raising the age to 70 in order to qualify to get social security. Seniors may have to consider a partial retirement in the future where they work a part time job to supplement their income.

Visibility: Everyone
Posted: Sunday July 5, 2009, 12:37 pm
Tags: [add/edit tags]

Group Discussions start a discussion
Comments
Or, log in with your
Facebook account:
Compose your comment and submit:




Author

Lyn Z.
Author Tools:
Compose New Share
female, age 66, divorced, 2 children
Largo, FL, USA
LYN'S SHARES
Nov
29
(0 comments  |  discussions )
Do not say, "I understand! I have attained mastery!" If you have attained mastery, then why are you going around asking other people questions? As soon as you say you understand Zen, people watch whatever you do and whatever you say, wondering wh...
Nov
25
(0 comments  |  discussions )
If people with a potential for enlightenment are willing to see in this way, they must investigate most deeply and examine most closely; all of a sudden they will gain mastery of it and have no further doubt. The reason you do not understand is jus...
Nov
21
(0 comments  |  discussions )
If you are spiritually sharp, you can open your eyes and see as soon as you hear me tell you about this. Have not people of immeasurable greatness said this truth is not comprehensible by thought, and that it is where knowledge does not reach? We...
Nov
20
(1 comments  |  discussions )
Body impermanent like spring mist;Mind insubstantial like empty sky;Thoughts unestablished like breezes in space.Think about these three points over and over.      - Godrakpa (1170-1249)


SHARES FROM LYN'S NETWORK
Dec
9
by Team O.
(0 comments  |  discussions )
Ende November genehmigte die EU-Kommission den Genmais MIR604 des Agrochemiekonzerns Syngenta für den Import in die EU, nachdem vorher bereits drei Genmais-Sorten von Monsanto und Pioneer zugelassen wurden. Die Zulassungen dienen dazu, ...
by Team O.
(0 comments  |  0 discussions )
- Arte: "Victimes des ondes Les réfugi&Atild e;©s de la technocratie" (vidéo Haute Définition 16/9)http://www.next-up.o rg/France/EHS.php#1
by Team O.
(0 comments  |  discussions )
Independent Institute by Randall Holcombe 12/08/09 President Bush provided the initial bailout for GM and Chrysler in December 2008, so itÂ’s reasonable to look back a year later and ask: Was the bailout necessary? Did it work? In hindsight...
by Team O.
(0 comments  |  discussions )
The Nation by William Greider 12/08/09 The sales pitch for financial-reform legislation pending in the House claims it would put an stop to ‘too big to fail’ bailouts for the leading banks. The reality is the opposite. The fede...
by Team O.
(0 comments  |  discussions )
FreedomWorks by Matthew Clemente 12/08/09 This morning, President Obama held a press conference to outline his second multibillion dollar stimulus proposal. Unlike the administration 6;s $787 billion Â’stimulus&Aci rc;’ bill w...


MORE MEMBER BLOGS
Dec 9
Blog: New Site For Real News Reporting by Doug W.
(0 comments  |  discussions ) — By David DeGraw, AmpedStatus Report Report Contents:——&m dash;——&mdash ;—I: U.S. Societal Breakdown——&m dash;——&mdash ;—II: Environmental Crisis——&mdas h;———&m dash... more
Blog: Pray Daily by Nance R.
(0 comments  |  discussions ) — When each step of your journey and each prayer spoken on your behalf, you are drawn closer to the One Who planned good things for you. How does prayer help you along the path?  Why is it essential to finding your wings?  Augustine of Hip... more
Blog: Sun is in Sagittarius, Moon is in Virgo by Michelle L.
(0 comments  |  discussions ) — more
Blog: EU legalisiert Genkontamination by Team O.
(0 comments  |  discussions ) — Ende November genehmigte die EU-Kommission den Genmais MIR604 des Agrochemiekonzerns Syngenta für den Import in die EU, nachdem vorher bereits drei Genmais-Sorten von Monsanto und Pioneer zugelassen wurden. Die Zulassungen dienen dazu, ... more
Blog: Next-up News Nr 1143 by Team O.
(0 comments  |  0 discussions ) — - Arte: "Victimes des ondes Les réfugi&Atild e;©s de la technocratie" (vidéo Haute Définition 16/9)http://www.next-up.o rg/France/EHS.php#1 more
 
Content and comments expressed here are the opinions of Care2 users and not necessarily that of Care2.com or its affiliates.
Copyright © 2009 Care2.com, inc. and its licensors. All rights reserved