Tuesday, November 18, 2008

Slowing economy squeezes seniors' budgets

By KEVIN VALINE
kvaline@modbee.com

last updated: August 19, 2008 06:26:33 AM

Don and Jan Cormier's big splurge each year was to spend three or four days in Monterey. They'd stay at Motel 6 and treat themselves to a $50 seafood dinner one night.

But it's been several years since the Modesto couple has made the trip. They've gotten rid of their cell phone, keep the air conditioning set at 83 to 85 degrees -- the breeze from a ceiling fan helps -- downgraded their cable service twice and last month switched to car insurance that will save them more than $600 a year.

"A lot of the time," Don Cormier said, "what we'd like to do is jump in the car and go. But we can't do it, not with gas at $4 a gallon."

Like a lot of retirees on fixed incomes, the Cormiers are feeling squeezed. A down economy is tarnishing the golden years for some seniors as they struggle to pay for the basics.

Jill Erickson, who supervises Stanislaus County's senior and caregiver hot line, said it's not just low-income seniors who are asking for help.

"I've been doing this job since 1999," she said. "For the time, I see a trend of moderate- and above-income people. They can't pay their mortgage. ... They are falling behind, and they don't know what to do. They are panicked."

She said the downturn has been particularly hard on low- income seniors.

"A lot of our seniors live on less than $900 a month," she said. "That's people living on their Social Security."

About 10 percent of Stanislaus County's approximately 525,000 residents are 65 and older. Householders, which are the people or person who own or rent the home, 65 and older had a median income of $29,579 compared with a countywide median income of $48,566, according to 2006 census estimates.

Erickson said the sour economy has exposed the financial vulnerabilities of seniors who haven't adequately prepared for retirement.

"They think Social Security will be enough. The message is Social Security is not enough."

The county's program that delivers lunch to homebound sen-iors has tightened eligibility requirements and instituted a waiting list. Erickson, who has been involved in that program since the early 1990s, said she believes this is a first.

"That's truly to serve the sen-iors who really need this, who without this program may not have a meal that day," said Misty Ridenour, senior meals program coordinator at the Howard Training Center.

More seniors, bad economy

The increase in demand is because of growing senior population and more referrals but, Ridenour said, the economy also is a factor.

"Their bottom line budget is not stretching as far as it used to," she said. "They are looking for extra services."

The program is for people 60 and older who are homebound, live alone and can't drive. The program now insists that eligibility requirements are strictly met so a senior who doesn't drive but can use a bicycle or Dial-A-Ride no longer qualifies.

Ridenour said the program has a two-month waiting list of about 30 people.

"It breaks my heart," she said.

The senior meals program also serves lunch Monday through Friday at 12 locations, such as senior centers, throughout the county. Seniors get hot meals for a suggested donation of $2.

Ridenour said after years of flat attendance, more people are showing up. That means this program too may have to tighten its requirements if the trend continues.

"That's never been done before," she said. "That's a real possibility."

Modesto's Inter-Faith Ministries has seen more older residents turn to it for help with food. About 60 percent of its new clients in the past month were 50 and older, said Executive Director Lynis Chaffey.

She said they are struggling to pay for basics: gas, food, utilities, prescription drugs and housing.

"I think it's the sign of the times, and people are on the edge," she said. "We had a woman who came in recently who said her electric had been off for three months. That is not as atypical as people would like to think."

'We consider ourselves lucky'

And agencies that give food to low-income residents say they are serving more seniors.

Don and Jan Cormier know they are better off than many retirees. They own their mobile home at Coralwood Mobile Home Park and don't have any payments on their 2000 Kia Sephia.

The Cormiers, both 63, live on about $2,500 a month in Social Security, disability and pension payments, although they had been getting by on about $1,600 a month and their savings until Don Cormier's disability for cancer was approved last month.

"We consider ourselves lucky," said Jan Cormier, who retired four years ago from her job with the county. "There are lots of people in the park who are getting by with a lot less."

But they still watch their budget. The space rent for their mobile home takes a little less than a third of their income. They have $26 left in savings and $7,000 in credit card debt. Now that Don Cormier's disability has come through, they want to get out of debt and rebuild their savings.

"The economy just has to get better," he said. "Every little thing we can do to save money (we're doing). That's about it."

Bee staff writer Kevin Valine can be reached at kvaline@modbee.com or 578-2316.

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