Sunday, August 21, 2005

[Wisconsin] Seniors find more to financial struggles than an arbitrary poverty line

From The La Cross Tribune

By KATE SCHOTT / La Crosse Tribune

No one would say Reenie makes a lot of money.

But her annual income is more than $9,570. That's the line for single people 65 and older. If her income were less, the federal government says she would be in poverty.

But she owns her own house and gets a $960 Social Security check every month. For emergencies or large expenses, she has a savings account, built up from 48 years of work. She had her employers take a couple dollars off every paycheck, with the idea that she "couldn't spend it if I couldn't see it. Every time I got a raise, I put a little more in there."

She knows plenty of people who have it worse than her, who get less from Social Security or who didn't save enough for retirement.

But Reenie, 81, had little more than $4 left from her Social Security check last month.

Her expenses aren't many. She has utility and telephone bills. Then there are the doctor's visits and the medicine to treat her emphysema, arthritis and Crohn's disease.

She spends about $40 a month for a nutrition program that brings her lunch four days a week. She goes to the grocery for breakfast and dinner supplies.

And every other week she spends $10 to have her hair done. Occasionally she splurges, spending $20 for a cut.

In July, she also had a $600 property tax bill and $320 in home insurance. Unexpected or big expenses like that often come out of her savings.

"You keep taking it out and taking it out. There's no way I can put it back in there once it's gone," she said. "If the roof blows off, there goes my savings."

So Reenie looks for sales and clips coupons. She recently waited until sugar went on sale before buying a four-pound bag. She didn't spend the $4 from last month. This month is looking tight too.

Reenie is not among the 936 people older than 65 in La Crosse County living under the federal poverty threshold, according to 2003 Census Bureau figures. But those who work with the elderly say there are many seniors like Reenie who live just above line, who may be worse off than those below it.

Getting by

Tina Johnson, benefits specialist at the La Crosse County Aging Unit, said her contact with struggling seniors typically starts with a phone call.

"They all start with ‘I can't afford...," she said. They end with things like medicine, property taxes or a utility bill.

Her job, like her counterparts in other counties, is to find programs each caller qualifies for. Sometimes it's not quite what they're looking for: Maybe they're looking for help with their prescriptions but only qualify for fuel help. Johnson will get that set up, freeing up dollars for other expenses.

"We don't go out and say, we want to help you," Johnson said. "They initiate contact. At that point, they're ready for help."

The number of people older than 65 living in poverty has dropped dramatically since the mid-1960s, when nearly 30 percent of seniors were considered poor. Only 10.2 percent were in poverty in 2003, the Census Bureau reported.

Karen Holden, professor of public affairs and consumer science at University of Wisconsin-Madison, said programs like Social Security have decreased the number of elderly living in poverty. But Holden, who is affiliated with the Institute for Research on Poverty at UW-Madison, said some of those same programs hinder the nation's oldest citizens by placing them just above the poverty threshold and disqualifying them for other programs.

Multitude of factors

It's more than just benefits checks putting seniors in a pinch. Fixed incomes play a part but there's many more factors contributing to seniors having fewer dollars.

While each case is different, those who work at Senior Services or county Aging Units in the Coulee Region say many of their cases have similarities. At the simplest levels, costs have increased while income has remained static or decreases for seniors.

Social Security benefits increased by 2.7 percent last year; the year before that, it went up 2.1 percent. The U.S. consumer price index, which measures the average changes in prices of goods and services, rose by 3.2 percent in the past year.

Leon Burzynski, president of the Wisconsin Alliance for Retired Americans, said he knows of a number of seniors who have had to return to work because they either didn't save enough to cover their costs or are set to outlive the amount they saved. The Social Security Administration estimates that the average life expectancy of a 65-year-old today is 17.5 years. In 1935, the year the Social Security Act was signed into law, the life expectancy of a 65-year-old was 12.5 years.

"Inflation has done cruel things to the elderly," Burzynski said.

Health in particular can take a bite out of limited incomes. Prescriptions, medical costs and health insurance can quickly add up if someone is diagnosed with a health problem.

"Even people who have put aside a fair amount of money for retirement, they are finding that if they have a health issue, that can change considerably," said Pat Peterson, director of the Unit on Aging in Vernon County.

Sister Kathy Stuttgen, of the Franciscan Sisters of Perpetual Adoration, believes the loneliness many seniors feel contributes to health problems. As they get out less they become lonely and need more companionship — at a time when fewer people are stopping by. That can lead to depression, which can contribute to aches and pains, which can contribute to doctors visits, she said. Some go to the doctor because it's someone who will pay attention.

Property taxes are another issue. People who paid off their houses years ago find themselves paying thousands more just to stay in their home. Reenie, for instance, bought her four-room house in 1970 for $14,000 and had it paid off in 10 years. Her property taxes in 1970 were $350. This year, she's paying $2,150.61.

In addition to the rising taxes, Robert Dean, dean of the School of Business at Viterbo University, said many older people plan to sell their houses and use the profit as part of their retirement savings. With houses appreciating between 6 and 12 percent annually, that seems like a good plan, he said. But he and other economists are afraid the demand for housing will drop and homes will be worth less than many assume — leaving people with less money than anticipated for retirement.

Peterson said the elderly in rural communities face additional hardships. Many were farmers and did not contribute much to Social Security, intending their farms to be their retirement income. And while transportation is a roadblock for many seniors, those in rural areas can't rely on public transportation.

But perhaps the biggest barrier is pride. These are people who grew up during an era where you picked yourself up by your bootstraps, said Vicki Vieth, nutrition program coordinator for Monroe County Senior Services. They turned to family or friends for assistance, but didn't look for handouts. Admitting they need assistance is a hurdle.

Stuttgen sees this when she visits the elderly in their homes. She takes food to one woman who lives on a shoestring budget who always asks if anyone else is getting the same meals.

"They grew up with the mentality that they don't want to owe anything," Stuttgen said. "You didn't buy it unless you had the money for it. They would rather go without or scrimp."

Peterson said her staff points out their services are open to anyone 60 and older, not just for people who are income eligible. They point out that meal sites, operated by most county Aging Units or Senior Services agencies, are a great place to socialize and get a nutritious meal.

"We talk about, how if they were cooking at home, it would be hard to have the supplies on hand for these meals," Peterson said. "If we can help them out with four meals a week, they can save on money and on waste. They couldn't possibly have those supplies on hand for the same price at what they get the meal."

Looking for answers

Despite their own struggles, area seniors said they are a generous group, say people who work with them. Seniors often say there must be someone who's need is greater than theirs or insist on paying for things that are free.

At Causeway Interfaith Volunteer Caregivers, one woman sends in a monthly check — usually no more than $20 — as a donation. Other times volunteers find a couple dollars tucked into a purse after driving someone to the doctor or grocery store.

But there are still frustrations. Reenie doesn't understand why services cost so much. When her washing machine was on the fritz, a local appliance store told her it would cost $70 just to look at it, not repair it. She needs a new muffler on her 1989 Chevy but can't afford that right now.

She isn't sure what the answer is for seniors toeing the line, but would like to see more women in public office. She thinks they would understand the burdens of the aged better, be more conservative spenders then men.

"I get so frustrated because everything costs so much," she said. "I'll go back to the old days any day. I really would. Years ago, everyone was willing to help others for almost nothing."

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