Taking care of your parents?

Question

Here's the picture. Will Social Security and Disability be enough to take care of our parents? Aging parents without retirement or savings or decent cars. Aging parents who don't own homes. Combined can someone live off that alone?

No debt, but no savings either.

Answer 1

It depends. My mother-in-law couldn't make her house payments after her husband died, so she lost the house. She lived in a different town, so we bought her a house (at our expense) to live in. Luckily she is still very active and can take care of herself. She pays all her bills herself but doesn't have to worry about loosing her home. She gets heating assistance and food stamps and can visit the local food bank. On a rare occasion, if she can't pay her bills, we will help out. She only gets $500 a month to live on, but she does very well.

My parents, on the other hand are both still living and on Social Security. My dad makes a pretty good amount, but my mother makes very little. If something happens to my dad, we will have to support my mother. Fortunatly, their house is paid for and they have no debts.

Not all children can afford to bare the cost of supporting their parents, we are one of the very lucky few who can just eek out an existance and still do what we need to do for them. I'm not ashamed to say I live in clothes off sales racks at Wal-mart, I do all my own cooking and don't eat out, we don't drive fancy cars or take vacations. We do what we have to do.

In answer to your question, no, I don't think Social Security and/or disability will take care of an aging parent if they don't own their own home and have all their bills paid off. And, I don't think it will even be that good by the time we want to retire, now there is a depressing thought!

Answer 2

Admittedly, this is more personal opinion than researched study. . .

Social Security is in bad shape, but we are not headed toward the "Doomsday Scenario" that a lot of commentators are pushing. Instead, SS will likely pay out somewhere between 60 and 85 percent of what recipients are "entitled to." For people that can live off of that, they will be fine. For others who plan on extensive travel, supporting children and grandchildren, or a long life of moderately expensive habits such as fine dining and golf club fees, SS will not foot the entire bill.

Disability only kicks in when someone qualifies as "disabled" - even then, my impression is that disability pay rarely pays more than the costs of the disability.

The most costly variable, though, is nursing home care. This is very expensive, and Medicare is paying less and less. Congress may also address medicare payments of nursing homes, my guess is that they are likely to pull back, rather than expand this benefit.

Overall, parents that have no savings, including no real estate investment may need some supplemental care. But, if they are debt free as you say, how much care they require depends on what lifestyle you want them to live. I think they can "get by" - as many seniors will likely be doing. Bottom line: I think we're going to start to see more "wealth disparity" in how retired seniors live.

Answer 3

Girl, this is a great question!! I have been wondering this very thing for a long time! Although my mother works harder than most men in their prime, I still feel that her retirement age is going to be severely lacking when it comes to her being able to "live" off of it. I'm already making plans to build a house, once I graduate med school, that can accompany us both. Good luck

Answer 4

The majority of the baby boomers (parents & grandparents) have homes, and retirement accounts. However, their mentality is that they're poor if they only have $1 Million (homes, retirement, & life insurance).

Sadly, many take the social security when they don't need it simply because they "Paid" for it and feel it's due to them. This takes away from the ones who truly don't have the nest egg built up to $1 Million.

Additionally, with the current "Death Tax" breaks, most will die leaving their money to their families who will then collect the Social Security; again, when they don't truly need it. Current laws allow inheritance less than $5 Million to pass tax - free.

When we look at the accumulation of wealth, we're seeing inheritance as the key separator between classes. Those who've maintained a life with saving to pass to their children maintain middle - class while those who don't fall into the "lower class".

Since the Baby- Boomer & World War II generation have most of the money (in retirement & pension) ... and corporations like Johnson -n- Johnson keep passing the business to each generation ... well, this is where we're harming ourselves by cutting out the middle classes and making separation of classes.

Yes, I'm worried about those elderly without children who love them ... the elderly who become too feeble minded to understand they have millions in assets, but want more free benefits ... the elderly who drive with blindness ... yes, it's an issue ... but Social Security is not the cure --- taxation of inheritance tax is the cure.

Mostly, I'm worried that the AARP will keep pushing seniors (largest voting population) into more tax cuts and more benefits like free health care. Reality check ... money's gotta come from somewhere --- and guess what, its the elderly who're hoarding it all.

Answer 5

No, it isn't enough. It's usually between six and eight thousand a year. Many seniors go to work for Walmart and McDonald's, in order to supplement this income. I think it's a real shame that our seniors are treated like this. They also have to provide their own health insurance through Medicare. So they live on even less.

Answer 6

Probably not Phebes, I'm sorry to say. You sound like you have siblings?

Why not start a savings fund for them now, you and all your brothers and sisters, then if there is ever an emergency, like a bill, you can pay it between you? My husband and his siblings did this amd it worked very well for their mum for about 20 years.

Make sure you get correct welfare advice....usually free....about what your parents can claim.

Answer 7

It all depends on how much they get and how much they owe!