COMMENTARY | MSNBC reports that although the economy seems to be improving for most Americans, there is an increase in older adults struggling to pay the bills. Most retirees are relying on retirement to pay the bills, and as healthcare costs continue to rise, the money a retiree brings in each month is staying the same. Here is how I think this can affect the economy, and why retirees should see a higher amount of assistance each month.
The biggest issue is that healthcare costs keep rising, and as an older adult, there is usually more cost associated with healthcare. An older adult is more likely to suffer from medical conditions, which means that more income will be going toward medical bills instead of going toward other household items. This is going to continue to affect retired people in a huge way, especially as insurance premiums continue to rise. Retirees should be getting more assistance for medical bills, whether it is through lower insurance premiums or through more state programs aimed at helping those with a fixed income.
I find this information very scary, especially considering how fragile the economy is right now. If more retirees are struggling to pay the bills, then it could cause foreclosures to rise again, which could result in another housing bubble. If a retired person is hurting financially, then it hurts the economy as a whole, because older people are the most likely group to go on vacations. I also worry that the struggles from the older adults will trickle down to younger generations; since more people will be helping their parents pay off debts, which can make them get into debt as well. Since retirees are not seeing an increase in income, every time those prices go up at the store and gas station, retirees are left with less money to work with to pay the bills.
The retirees will also likely have less income to spend on other financial obligations, which means that retirees will let credit card bills or other items go unpaid. It is going to hurt the economy if retirees do not see more assistance, because they will be choosing which bills to pay based on priority. If the government is worried about added cost to the debt by increasing benefit amounts, then there needs to be a way to offset those costs by reducing spending in other areas. Since retirees are seeing less of their money each month, because it is mostly going toward healthcare and other bills, there needs to be a way to reduce healthcare costs for older people. It would help if medical tests could be reduced in price, and it would also help if standard preventative care was free for older adults.
Myself, Personal Opinion
John W. Schoen, “Retirees tighten the belt, but still struggle”, MSNBC