It would seem that older people need little to live. They have where to live, what to eat and they no longer need to save anything. Their children are all grown, they’ve paid off their loans so all that remains is to enjoy life in retirement.
The reality turns out to be a little grim. Only a few seniors can afford this convenience and have money saved up for old age. In places like Norway, Belgium and the Netherlands pensions are a significant amount, but in poorer countries people can only dream about a peaceful retirement. Typically modest savings are sufficient enough to pay for drugs,rent and candy for grandchildren.
69-year-old Pat and her 83-year-old husband Stan struggled with a serious financial crisis. The retired couple could not make ends meet despite their savings. They lived modestly, but it was not enough for their current needs. One day they decided they would take a loan out on their car. There was no alternative, and they had to do it to survive. They regularly paid their installments, until one day they completely ran out of their savings.
How did they cope with the problem? More about this on the next page!