Linda, a retired Baby Boomers teacher from Ohio, must continue working to make ends meet. Despite living modestly with her late husband, both of whom were public servants, her pension and Social Security are not enough to cover her expenses. Linda’s story is a stark reminder of many retirees’ financial struggles today.
Linda, who asked for her last name to be withheld for privacy reasons, had envisioned a different kind of retirement. With a pension that provides her with $3,700 monthly, down from her pre-retirement income of $5,000, she is still grappling with debt and ongoing bills.
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As public servants, we led simple lives, just scraping by. After my husband’s death, I found myself still in debt and needing to work,” Linda shared. I want to work part-time, but I need it to be flexible. I would even consider delivering groceries for Instacart if required. I wish to not burden my kids in any way.
Linda’s predicament is far from unique. The Census Bureau’s 2022 Current Population Survey revealed that over half of Americans aged 65 and older live on less than $30,000 annually. Many older individuals anticipate working until they are physically unable to continue. This trend highlights a growing retirement crisis, exacerbated by dwindling pensions and the uncertain future of Social Security.
“I expect to work for the next 20 years or however long I have left. I won’t be enjoying a typical retirement in Florida,” Linda said.
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Linda hopes to piece together a sustainable retirement plan through her pension, a rolled-over retirement plan, selling her house, and part-time work. “I’m trying to create a situation where I can live comfortably. I may never be wealthy or worry-free, but I want to travel and supplement my income with part-time employment,” she explained.
Linda is among the shrinking number of retirees with a pension, following a career in low-paying public service. According to a Government Accountability Office report, fewer low-income Americans have retirement accounts or pensions, shifting the burden of retirement savings to workers themselves. For low-income individuals, this is particularly challenging.
Teachers, Linda believes, have been unfairly criticized. “People think teachers just want to take from the system, but that’s not true. Teaching comes with a low salary and many financial challenges,” she said. Despite these challenges, Linda found teaching to be the most rewarding work she’s ever done.
She urges a reevaluation of Social Security and retirement benefits. Pensions, she points out, are increasingly managed by private equity, threatening guaranteed benefits, while politicians debate raising the retirement age and cutting Social Security funding.
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“We need to stop viewing Social Security, which people have paid into for decades, as an entitlement. It is a right,” Linda asserted.
Despite her struggles, Linda feels fortunate to have the support of her two adult sons. She is moving closer to one of them, knowing she has a safety net. “My age group is not alone in feeling desperate and unsure of their future. Those are the people I really feel for,” she said.