Chattanooga: Seniors getting squeezed

After six decades in the work force, 85-year-old John Walter Rhea still cannot afford to retire completely.

A former salesman, Mr. Rhea, who lives on the side of Missionary Ridge, works 20 hours a week at Food Lion in order to pay for his mounting health care, gas and food expenses. His noon-to-5 p.m. schedule allows him time to take care of his wife, Martha, who has a number of health conditions, he said.

Still, the couple sometimes must put off refilling prescriptions for her pain medications until Mr. Rhea’s bi-monthly paycheck arrives.

“Water bills are going up, everything is going up,” Mr. Rhea said. “We have a lot of doctor bills and hospital bills that we’re paying on. ... There’s no question about it. I have to work now.”

There is growing evidence that America’s prolonged economic slump, coupled with its rising grocery and gasoline prices, is prompting seniors to trim their everyday expenses, including medications, food and utilities.

A recent AARP survey on baby boomers and their parents reported that retirees and those 65 and older — people more likely to be living on fixed incomes — may be bearing the brunt of rising prices. Almost 60 percent of people over 65 are struggling to pay for food, gas and medicine, and 11 percent of retirees have sought assistance from family or charity organizations in the last year, the survey found.

“Because gas prices are going up and utilities are going up, they’re having to make adjustments in terms of where their spending is going,” said Patrick Willard, director of advocacy for the Tennessee AARP. “Because of that, they have to put off some of these other purchases and reduce their spending and tighten their belts.”

Economic hardship for those on fixed incomes is nothing new, but a combination of factors is making a bad situation even worse, said Eleanor Johnson, program manager for the Partnership for Families, Children and Adults’ social service program for the elderly.

“The squeeze for elderly (people) has been going on for 20-some years. It’s not a new situation, it’s just the squeeze is greater” now, she said.

RISING PRICES

Contributing to that squeeze are rising prices for necessities such as food, gas and utilities.

The current national average for a gallon of unleaded gas is $3.78, compared to $2.76 a year ago, according to AAA’s Daily Fuel Gauge Report. Retail milk prices have risen to an average of $3.89 per gallon of whole milk in July, compared to $3.14 two years earlier, according to the U.S. Department of Agriculture.

When it comes to utilities, Tennessee-American Water Co. instituted a 12 percent rate hike in 2007 and is asking for another 20 percent increase this year. On Oct. 1, the Tennessee Valley Authority is hiking its electricity rates by 20 percent, its highest jump in 75 years.

Demand for the Partnership for Families, Children and Adults’ social service program is growing, although stable funding levels do not allow the agency to expand its staff or the amount of services it provides, Ms. Johnson said.

The Partnership provides case management for elderly people in need of homemaker services such as meal preparation that could help them to stay at home. The agency works primarily with low-income elderly citizens in the area, Ms. Johnson said.

“They’re really struggling to make ends meet in all areas,” she said.

And it’s not just lower-income senior citizens feeling the squeeze.

“With the downturn in the stock market, a lot of those who rely on their dividends and income from investments are sort of hit that way, and it lowers their overall income,” said Viston Taylor, president and CEO of Alexian Brothers Community Services. “In combination with inflation in gas and food prices, it is bound to be hitting them pretty hard.”

TOUCH DECISIONS

In the face of rising prices for staples, some seniors are facing very tough decisions when it comes to medical care, although an increase in the availability of cheaper generic drugs at stores such as Wal-Mart has helped greatly, said Rae Bond, executive director of the Chattanooga and Hamilton County Medical Society.

“Physicians are very concerned about it because a lot of (doctors), they write prescriptions, but if the patients aren’t able to get the prescriptions filled then obviously that has a huge impact on patient health,” she said. “It’s really unfortunate in the richest country in the world that people have got to choose between medically necessary prescriptions or medical tests and procedures and food.”

Many seniors also are altering their travel or errand-running plans, combining all trips into one in order to keep the car parked for a couple of days, said Tom Swanson, 60, president of the Chattanooga chapter of the TVA Retirees Association.

Local retirees are canceling or scaling back planned RV trips, as well as sharing tips on how to conserve gas, he said.

“Now at our meetings, we will mention where we found the cheapest gas, and that never used to be a subject that came up even as an honorable mention,” he said.

Mrs. Rhea, who is 79, said she still would be working if she hadn’t needed a back operation six years ago. Although her husband enjoys staying active in his retirement years, Mrs. Rhea said she wishes he had the time to simply relax.

“He never complains. He’ll go until he drops, I guess. I would love to see him get to quit,” she said.