Posts Tagged "pandemic"

Cut off from Grandkids, Depression Sets in

The purpose of the 2020 restrictions on older people’s activities during COVID – whether voluntary or government enforced – were crucial: keeping them alive as the deadly Delta variant raced through the population worldwide.

But saving lives came at the cost of grandparents’ mental health, according to a study in the Journal of Gerontology: Social Sciences about grandparents in England.

In the scary early months of the pandemic, grandparents cut off or limited interactions with their grandchildren. In England, the grandparents who isolated themselves suffered more mental health problems, including bouts of depression, than the grandparents who maintained the same amount of contact with grandchildren as they’d had before COVID, the researchers found.

This isolation affected grandparents all over the world. American doctors warned older people against mingling with young family members, any of whom might be asymptomatic carriers of the disease. European governments imposed lockdowns or discouraged old and young from getting together. In Israel, the defense minister said, “the single most lethal combination cocktail is when grandma meets her grandchild and hugs him.”

The response by grandparents was echoed in a March 2020 article, “When Can I See my Grandkids?” The COVID-imposed isolation finally gave way to some normalcy after the older population got vaccinated at high rates.

But researchers said the pre-vaccine loneliness had an especially big impact on the grandparents of children under 15 who took the most dramatic step: cutting off all contact with them. Early in 2020, half of the English grandparents who had caregiving duties prior to the pandemic stopped interacting with the children. …Learn More

Remote Work Has Pushed Up House Prices

Slack, Citizens Bank, Penguin Random House, Verizon, 3M, Twitter – the list is long and growing of companies that have allowed employees to continue working remotely even though the pandemic seems to be easing.

The COVID-19 upheaval in lifestyles – the moving around to larger homes, to the countryside or to an affordable city – is pushing up house prices.

John Mondragon at the Federal Reserve Bank of San Francisco and Johannes Wieland at the University of California, San Diego, estimate that remote work fueled a 15 percent rise in house prices over the two-year period that ended in November 2021. That’s more than half of the total price increase for that period, which was a record, the researchers said.

A few different types of lifestyle changes drove the price hikes. But the bottom line is that remote work caused a frenzy of buying activity that wouldn’t have happened otherwise. The increase in demand sparked competitive bidding for properties – and prices shot up. And the parts of the country where remote work was more common had significantly larger price increases.

The price increases “reflected a change in fundamentals rather than a speculative bubble,” the researchers concluded.

Soon after the pandemic began, workers who were changing their living arrangements made the news. Renters left behind expensive apartments in New York or San Francisco to escape COVID’s dangers. Now working remotely, they used their newfound freedom to become first-time homeowners in an appealing suburb nearby or a rural area halfway across the country where they could afford to buy a house.

The need for larger homes also heated up market activity. Having more space was suddenly more valued by workers who required an additional bedroom to set up a home office or now had to accommodate both spouses working from home – and, early in the pandemic, children attending classes on Zoom.

The researchers stress that they measured only the price increases resulting from an increase in aggregate housing demand nationwide. In other words, people didn’t add to total demand if they simply moved from Chicago, where they sold a condominium, to Des Moines, Iowa, where they purchased a house of similar value. …Learn More

The Pandemic Was a Gift to this Grandpa

Marc Joseph reads to Grace and JacksonMarc Joseph reads to Grace and Jackson

In the early days of the pandemic, four of Marc Joseph’s grandchildren, along with their parents, came from Austin and Orlando to live with him and his wife, Cathy, in Scottsdale, Arizona. Two other grandchildren living nearby were frequent visitors to the house for meals and sleepovers with their cousins.

Many families coalesced to ride out the pandemic together and counteract the stillness that fell over the world. Joseph’s six joyful weeks with his grandkids, ranging in age from 1 to 8, changed how he looks at his personal relationships and the responsibilities of being a grandparent.

“As you grow older, you grow wiser,” he said. “I wish I was there more often for my kids – every concert they were in, every ballgame they played. I was traveling around the world. I wasn’t always home,” said the former entrepreneur. “If I can spend more time with my grandkids, then maybe it’s making up for what I didn’t give my kids.”

The time with his grandchildren is so precious that Gramps, as the children call him, found a way to keep the connection alive when the children went back home. Every evening, he and Cathy made up stories about dinosaurs roaming their house in order to share them with the grandkids on Facetime. One night, the dinosaurs camped out at the refrigerator eating blueberries. Another night they were playing the piano.

“We became part of the routine,” Joseph said. “The kids took baths and read books and then they’d say, ‘What are the dinosaurs doing tonight?’ That gave us a chance to keep in communication with them.”

Joseph’s focus on family isn’t at all unusual. One research study found that women don’t make major changes in their more developed personal lives after retiring. But men do. After years of focusing on their careers, older men become more dependent on family and greatly expand their social networks.

All that love from grandchildren – without having to worry about managing their day-to-day activities – takes the edge off of getting older. This may be especially true during COVID, which has isolated retirees from the social interaction crucial to maintaining their mental and physical health. …Learn More

Rental Market Roars Back and Workers Pay

For a whole host of pandemic-related reasons, rents dipped in 2020 as millions of Americans lost jobs, stayed home from college, left the cities, or arranged for aging parents to live with them.

But the economy has bounced back, and an additional 900,000 households entered the rental market in the first nine months last year. This unusually large surge in demand drove up rents and raised new concerns about housing affordability for the low- and middle-income workers who were already struggling to pay the rent.

The market for professionally managed apartments saw an unprecedented rent spike of 11 percent in the third quarter of 2021 compared with a year earlier. Prior to the pandemic, annual rent increases had averaged 2 percent to 5 percent. The biggest hikes are in pricier apartments and are being fueled by a strong job market and young adults in their 30s marrying or moving in with partners or friends.

“These higher-income renters aren’t just living in units that are higher end. They’re also competing for units that would be affordable to middle- and lower-income households,” said Alexander Hermann, senior research analyst with the Joint Center for Housing Studies at Harvard University.

“The affordability challenges they’re facing are real, and there’s plenty of reason to be concerned about what’s happening,” he said.

One positive development in a difficult rental market is that multifamily construction is at its highest level since the 1980s. However, it will take years for the new inventory to ease the pressures on apartment supplies and rents.

The low inventory of single-family houses for sale currently, combined with high house prices, are also driving up apartment demand by well-paid professionals. To satisfy the demand, hedge funds and other businesses are snapping up single- and multifamily homes and renovating them as rental properties. The high-end market is so hot that rents in this segment rose 14 percent last year, according to the Harvard housing center’s new report.

At the bottom of the income ladder, however, 23 percent of households with less than $25,000 in income are behind on rent, as are 15 percent of households earning between $25,000 and $50,000. These renters are disproportionately people of color, who felt the brunt of the massive job losses when businesses shut down early in the pandemic. …Learn More

Wandering into Retirement Worked for Him

Howard Gantman didn’t exactly have a plan for retirement. Rather, he wandered into it during the early months of COVID chaos.

Nevertheless, retirement is going better than he’d expected. Gantman, who read comic books and science fiction voraciously as a child, has rediscovered his passion. He joined a writing group on Zoom and is working on a science fiction novel of his own. (And no, he’s not disclosing the plot yet.)

“I’m happier doing this than I would’ve been if I’d continued to work. I really was ready for a change,” the Washington, D.C., resident said in a recent interview. “Aside from a gruesome virus that keeps on whacking us on the head, I feel more in control of my life.”

Howard Gantman

Howard Gantman

Retirement experts often warn baby boomers that planning for lifestyle changes before retiring is just as important as making certain one’s finances are in order. That’s the ideal. But not everyone who’s making the transition has a well-developed plan or takes a straight route to where they wind up.

Gantman, a former journalist and government and communications professional, had anticipated working until he was about 72. In March 2019, at age 67, he left his job at the Motion Picture Association during a staffing transition and started focusing on consulting and volunteer work while searching for a new job. In December, he had to go into the hospital for surgery to repair an aortic aneurysm and replace an aortic valve.

After the surgery, while he was recovering and doing some light consulting, COVID hit and his employment opportunities dried up.

He decided to get back into creative writing, something he had only dabbled in as a young, workaholic journalist and then government official. At first, he blogged about aging and thought about writing a memoir centered on his late-life transition. But that topic no longer seemed to strike the right tone with so many lives suddenly in turmoil around COVID.

That’s when his love of science fiction and fantasy pulled him back in. “I decided that’s it. That’s what I want to do,” he said about writing a novel. …Learn More

COVID Hasn’t Pushed Boomers into Retiring

Three months into the pandemic, a few million older workers had been laid off or quit. But what happened next?

The rapid drop in employment due to COVID gave the Center for Retirement Research an unusual opportunity to study the labor force decisions of baby boomers, who are within striking distance of retirement age but may or may not be ready to take the leap.

Traditionally, older workers who left a job tended to retire. But there was little indication that the people who stopped working during the pandemic saw retirement as their best fallback option.

This conclusion by the researchers is consistent with the pre-COVID trend of boomers working longer to put themselves in a better financial position when they eventually do retire. In fact, many older workers have returned to the labor force as the economy has rebounded and vaccines have become widely available.

Little impact on older workers retiringBut in April 2020, job departures spiked before settling back down at a new, much higher level. The annual pace of departures increased from 15 percent of workers 55 and over in 2019, prior to COVID, to 23 percent in 2020.

The researchers found a surprise when they looked at who stopped working. Although older people are vulnerable to becoming seriously ill from COVID, age wasn’t a big factor in their decisions. Boomers in their 60s were no more likely to leave their jobs than people in their mid- to late-50s, according to the analysis of monthly Census Bureau surveys.

The groups most likely to leave the labor force were women, Asian-Americans, and workers who either don’t have a college degree or don’t have a job that easily lends itself to working remotely.

But among all of the age 55-plus workers in the study, the share reporting that they had retired barely increased, from an average of 12 percent prior to COVID to 13 percent last year.

The only people who left their jobs and retired in significant numbers during the pandemic were over 70. This finding reinforced what the researchers found in data from the U.S. Social Security Administration: the pandemic didn’t have a major impact on retirement because the share of workers between 62 and 70 who signed up for Social Security was relatively flat between April 2019 and June 2021. …Learn More

700,000 Retirees are Behind on Mortgages

Boy and grandma playing soccerIn the second half of 2020, the number of retired homeowners who fell behind on their mortgage payments doubled to about 1 million per month.

By July of this year, it had dropped to 680,000 retirees. The federal Consumer Financial Protection Bureau (CFPB), which issued the report on homeowners over age 65, said about 12 percent of this population is vulnerable to imminent foreclosure and possibly homelessness. Some of the people who are having the hardest time paying their loans either have disabilities or are over 75.

But most the retirees in the CFPB report are largely reliant on Social Security, so their income is stable. To understand why they’re having problems paying the mortgage requires reading the tea leaves in the CFPB report. More than half of the retirees with past due mortgages live with at least two other people, including children and teenagers.

Lower-income people in multigenerational households typically share the burden of paying their living expenses. If a retired homeowner’s adult family member lost a job because of the pandemic, the homeowner might not be getting the money she needs to pay the mortgage. The CFPB survey confirms this is occurring: more than a third of older homeowners who are behind on their mortgages said a family member was unemployed.

Many of the people who are struggling had less than $25,000 in retirement income or were people of color. Their family members in the multigenerational households – presumably people of color – also may have worked in lower-paid jobs and bore the brunt of last year’s layoffs and reduced hours at work. …Learn More