South Florida retirees cut spending, look for work as inflation pinches pockets

More than 18% of Miami-Dade’s population is 65 and older, and life for our seniors, many of which are retired is becoming more complicated with our changing economy, higher costs of living and competitive workforce.

NBC6’s Sophia Hernandez sat down with Sandra Maxwell about her life as a retired 77-year old in the current economy in Florida.

“Well,” sighed Maxwell, “It’s been interesting let me put it that way,” she finishes with a laugh. The great grandmother was an educator for over 35 years and retired in 2009.

She said not working has had its pros: sleeping in during the week and being able to travel to destinations like Israel.

“Retirement for me and other friends is, 'hey, we are going to travel, we are going to have a good time, we are going to do this',” she shared. “Many of them have done some of that, but at the same time it’s like, 'oh wait, we are not getting paid every two weeks any longer, we have to stretch this money out as much as possible!'”

Sixteen years ago, she thought about returning to a job but today that is no longer an option for Maxwell.

“I definitely am not thinking about going back to work, not at all,” she said with a deep laugh.

So instead, she’s had to make some life changes.

“I am thinking about watching what I spend, how I spend it, what is important in that spending. Other things I can do to be able to survive all of this,” Maxwell expressed.

Senior Wealth Advisor Mark Barefield, with Guerra Wealth Advisors, advised being honest about that budget, and being able to pivot, is the most important thing for those living on fixed income.

“You need to be flexible and know at some point you will have a detour and to know when this happens, what do we do," explained Barefield. "What is our action plan? And, sitting down with somebody to come up with that standard of care, so making sure we know where you money is lined out.”

“That way when something happens like what we are seeing now, we take the emotion out of it and go back to our plan and we can say, hey look, we planned for this," Barefield added. "Yes, this is a terrible awful thing, but we have a plan, there’s something we can do, we’ve been planning for this, we’ve been ready for it.”

Maxwell considers herself one of the fortunate seniors.

“For me. I have been lucky. For what I retired on I have been able to live by that,” Maxwell said.

With a sly smile she added, “But as I tell everybody still, I am one paycheck away from the poverty level, so don’t think I have a lot of money,” she laughed.

Sandra’s plan? Cutting back on unnecessary items and buying groceries in bulk. And while it helps, she’s not sure if it’s enough.

When asked if she worries about the money, she’s planned coming to an end, she sighed.

“Yes, I have thought about that. And not worry in the way I know some people are worrying right now because they are in a tough time. But I think about people who don’t have but one check, and that one check they are not surviving on that much and then they don’t have that. For me, I worry about how I have set my budget and if will my budget work for me.”

Barefield said people need to seriously map out their retirement income years earlier.

“A lot of the people we talk to, when we talk about the expenses they will need in retirement, having their current income and they say when I retire I will live off of 50% of that, and you just can’t  live off the same quality of life," Barefield said. "So, we look at what does it really look like? Is your life going to change dramatically? You will lose some expenses not working, but you will gain expenses traveling, buying gifts for grandkids, so the honesty of it all is the key.”

And it’s those added expenses that made Cathi Rosengren consider going back to work.

“And then I have tried, just to get a little something part time to be able to help, for a vacation or whatever. And you know you are in deep trouble when you are on an interview and the person keeps calling you ma’am,” Rosengren stated.

The 74-year-old was in the retail industry for roughly 50 years. She just retired five years ago but the problem is today, after multiple attempts at any open position, no one will hire her.

“It’s like all of a sudden you have worked your entire life, since I was 14 years old, and all of a sudden, I can't get a job. It’s a difficult reality,” she shared.

Programs like the Senior Community Service Employment Program at AARP are trying to help applicants with this very issue. They help by getting them work at schools, community centers, or into offices.

But for some in this age group, as Maritza Lopez, the Project Director of the program shared, there is an added element of fear in returning to work.

“They are scared. They are really scared to go back out there," Lopez said. "They have been working somewhere for 25, 30 years or whatever and they wanted to retire, they stayed home for a year or two, and all of a sudden, they are trembling because they don’t know what else to do with themselves or their lives.”

It’s why for retiree Rosengren the continual rejections have been disheartening.

“I just feel like we are kind of a lost generation," said Rosengren. "We have so much to give, when I would go they would ask what do you want to earn and I was like I don’t care. I just want to go somewhere, meet a little group of people and still use my skills.”

With somberness she added, “It makes me feel like I am kind of useless. It’s disconcerting.”

But she hasn’t given up hope. She’s been volunteering across the City of Miami to fill her time and find company.

But with higher costs of living and wanting to be able to contribute in some way, she’s hoping soon to be able to land something, “We were in a more comfortable position a month ago then we are today simply because of everything that is going on. You don’t even get calls for jobs, and I know it’s a new way. We used to send in resumes or talk to people. Now a machine sorts everything and throws out the ones they don’t want, and it’s tough. It’s tough.”

“I think the hardest thing is the feeling that you are not needed or wanted. I think that’s the hardest thing,” she shared with a sad smile.

Lopez said the hardest part is working to keep our seniors’ spirits alive and give them the confidence to know they can still do the work. It’s also about having employers know that those 75 and older are still viable candidates, which Lopez shares is a hard task in a competitive job market.

Wealth advisors, like Barefield also want to caution that for some who do decide to return to work, higher income could mean higher premiums. They advise you seek a financial expert to see how you might be affected before starting a new job.