Boomer struggling with Social Security, retired early to care for wife

“Do we have money in the bank? Yes. Is it a lot of money? No,” Papalia told Business Insider.

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Many Americans told BI that they have struggled to prepare financially for the unexpected, such as a sudden health emergency or death in the family. As Americans increasingly rely on Social Security and other retirement income to get by, high medical expenses could throw years of retirement planning off balance.

He retires early to be his wife’s caretaker

Papalia set out to retire in 2015 at age 65, so he could receive Social Security benefits and have enough savings that money wouldn’t be a huge problem. However, in 2010 he retired to care for his wife full-time, taking a buyout from his company that lasted until 2014.

Marie, a lifelong diabetic, has experienced medical problems throughout her life, including loss of vision in her right eye, static hypertension and low blood sugar. She received a prosthetic eye after suffering retinal damage.

Marie’s medical care was expensive, and they also cared for two dogs, both of whom had expensive medical problems.

Marie needed round-the-clock care and felt it was worth the financial sacrifice to retire early to spend every hour with her to ensure she remained as healthy as possible. She had a heart attack in 2012, which forced her to put on hold plans to sell her New Jersey home to move to a lower-cost-of-living area in Pennsylvania.

In 2014, Marie underwent open heart surgery after doctors discovered a 95% blockage in her heart’s main artery. Papalia said that year was when finances became much tighter — he noted that Marie took eight or nine prescriptions each day. She struggled to walk in recent years and relied on a wheelchair.

“I know for a fact that when I look at my wallet at the end of the day now, it’s a night and day difference,” Papalia said, comparing the finances to 2010.

Passing by and making sacrifices

Papalia receives $2,132 per month from Social Security before taxes and insurance and $1,900 from her pension, while Marie receives $1,113 per month from Social Security. Although Papalia said they stayed afloat, some months were particularly tight.

Medicines could cost between $60 and $70 each week, and hospital bills add up to several hundred dollars every few months, meaning more than 10 percent of their income goes to Maria’s medical costs. Papalia said his health is stable, although he has acid reflux, neuropathy and an irregular heartbeat, for which he takes some medication.

“Without insurance, I’d be living under a bridge,” Papalia said. “If you don’t have insurance, you’re playing with fire.”

They’ve shifted their shopping to essentials from cheaper stores and, with food inflation in recent years, they’ve been even more methodical about their purchases. He estimates he spends under $100 a week on groceries, though he occasionally orders takeout. Papalia said the pandemic-era stimulus checks helped them afford their needs.

“We’re constantly going to the doctors for everything you can imagine: clogged arteries, eye surgery, a situation where he lost toes on his left foot,” Papalia said, noting that although they receive Medicare, the cost of deductibles and co-pays add up. .

They pay more than $10,000 in property taxes each year and anticipate that will continue to rise. Their heating bill costs them nearly $300 a month, while they pay more than $40 a month for their life insurance. They also pay nearly $300 a month for auto and homeowners insurance.

Papalia said it was only a matter of time before something went wrong with the house, pushing them into the red. A few years ago, he was given an estimate of $11,000 to fix his roof, but because the original roof wasn’t up to building codes, it became a $36,000 payment that they won’t pay until 2030.

“It’s a struggle every day and something will come up,” Papalia said.

Papalia said finances are so tight that she took out a reverse home mortgage, a loan for older Americans to borrow money from their home equity and supplement their Social Security.

He said he rotates between 30 credit cards for different purchases to limit his budget, earn rewards and keep balances on each card low to maintain his credit.

Papalia said he has considered getting a part-time job, although he said he can rarely leave the house given Maria’s conditions. Hiring a caretaker would be too expensive, Papalia said.

“We’re just taking it one day at a time,” Papalia said. “We worry about today and let tomorrow take care of itself.”

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