As Economy Tumbles, Retirees Scramble To Cope

[Purveyor]

Falling interest rates, rising prices hurt those on fixed income

The temperature in Lea Wait's home has been falling along with stock prices.

Wait, 61, invested the early retirement buyout she took from AT&T Corp. in 1998. As stocks gyrated this winter and the heating bill at her Maine home climbed to $600 a month, she made new investments: Thermal underwear and a wood stove that burns "BioBricks" made of condensed sawdust and wood chips.

"You try to do some planning," she said. "Then the stock market goes down and oil goes up. Fingers crossed that it will be an early spring."

Rising food and fuel prices, falling interest rates and screeching declines in worldwide stock markets have Wait and thousands of other retirees paring spending to levels some haven't seen in decades, forgoing dinners out, cutting back on groceries and canceling plans to visit grandchildren.

"All these costs are added up but when I get my Social Security check, it's the same thing," said Johanna Walker, 75, of Greenfield, Wis., a retired receptionist who said she depends on Social Security.

As a group, retirees are wealthy. People 65 and older have an aggregate net worth _ assets such as homes, cars, stocks and savings accounts minus liabilities such as debts _ of $14.45 trillion. That's more than one-quarter of the nation's total personal net worth, according to an analysis of the most recent data from the Federal Reserve-sponsored Survey of Consumer Finances.

---EOE---

http://www.msnbc.msn.com/id/22829374/

[sarcasmo]

1. Work till you die, the new American way.

[MercutioATC]

2. Isn't SSI indexed to inflation?

Yes, I realize that the cost of living increases are frequently outpaced by inflation, but "When she gets her Social Security check", it shouldn't "be the same thing".

[brook]

3. This year

the increase was something a bit over 2%, I think. 23 bucks for me. Doesn't make much of a dent in the monthly bills.

[Purveyor]

4. That is about what my mother received. $23 increase yet the price of her heating oil went up over

a dollar a gallon. Eggs went up 50 cents a dozen, etc, etc you know the story.

We are helping her out but if we couldn't...I don't know what she could do. 80yo is a little late to try to go back into the workforce.

[brook]

5. I understand.

I'm approaching 75 and my children are also my lifeline, even though I work p/t for a 'govmint' program that pays
a tad over minimum wage/no benefits. I feel like a gerbil on a treadmill.