Michelle Russell, 70, used to meet her closest friends for “music and margaritas.” It was their tradition: they would buy salty cocktails, share food, and listen to which local artist was playing at their favorite restaurant. .
But Russell has been getting fewer and fewer dinner invitations.
“This past year, since my income improved a lot, those friends stopped calling me,” he said. “They know I don’t have the money to go out, and it’s a shame when they pay for my debt.”
The Huntsville, Alabama resident lives on his $1,768 monthly Social Security checks, according to documents reviewed by Business Insider. Russell has no savings and sometimes has to buy groceries and gas with his credit cards. Renting his small apartment takes more than half of his monthly income.
After working most of his adult life, Russell never imagined retirement would look like this. He is not alone.
A fifth of Americans over the age of 50 do not have enough money for retirement, and those with money worry that they will outlive what’s in the bank. Monthly Social Security checks aren’t enough for many baby boomers to survive — many told BI they’re struggling to afford housing, food and health care.
These financial problems also fuel loneliness for the elderly. On such a tight budget, people like Russell don’t have much to spend on restaurants with friends or a trip to see family.
He said: “If you make friends, ‘Well, hey, why don’t we go to lunch? “Without me working, there is no money for that. It fades away, so you’re very, very private.”
Russell’s financial problems contributed to his loneliness
Russell quit his job in food service sales six years ago and began collecting Social Security during that time. Her late husband was a policeman, but they married later in life, so Russell said she was not eligible for her spouse’s pension.
A few years ago, Russell used any money he had saved from retirement to pay for unexpected expenses, such as medical bills or car repairs.
He’s been in and out of part-time jobs – working at a grocery store, Walmart, and a local liquor store. The money helped shore up his finances and paid for entertainment such as his “music and margaritas” nights, but Russell said he now struggles to work. It’s still hard to get hired at his age, he said.
He said: “Because of my age, I have limitations. “No, I can’t go in and pick up 50 pounds. I can’t stand on my feet for eight hours at a time.”
Russell lives alone in a 700-square-foot apartment with his dog, Pete. He pays about $900 a month, more than half of his Social Security benefits, which puts him under a lot of pressure. In addition to housing costs, you also have to pay your electricity, cell phone and insurance bills. He used to live with his eldest son to save money, but he moved out last year when he got married. He said he tries to avoid asking his children for financial help.
In terms of health care, Russell said Medicare covers most basic doctor visits and prescription needs. However, Medicare does not cover emergency or long-term care. He doesn’t know how he would be able to get hospital accommodation if he needed it.
Russell also receives $23 a month in SNAP benefits, but said it doesn’t go very far at the grocery store. Usually, he eats toast with butter and whatever is on sale – and you can usually only make one purchase per day.
In fact, not all caregivers are living close to poverty when they retire. Some have strong savings combined with 401(k) business matches, others have built wealth through well-placed investments. In addition, many older people have strong communities and social parties.
But, now, Russell feels like he’s a few hundred dollars away from losing his way to getting the things he needs.
“I can live as long as nothing unexpected happens,” he said.
Are you lonely because of your finances? Are you willing to share your story? If so, try to allisonkelly@businessinsider.com.