>>>>Some think the income of senior should come totally from income from assets and OASI. They seem to forget that principal should also be part of the "income" structure. To state that a person is poor because they only have $15,000 in income is just plain dumb. Based on mathamatics, the income produced from assets at date of retirement will and should exceed that of the annuity paid that year. However, usually within about six years the annuity paid out each year begins to rapidly exceed the income produced. In other words for those who are over 70, on average, their income should be less than their needs each year. The other part of their needs comes from principal. Therefore, their income should be in the poverty range!
The problem with that scenario, is nobody knows how long they will live. How long must the principal last? You end up with most having to buy a life annuity, and we are back to 'income'.
And that assumes that you have enough 'principal' to begin with. Many don't, and that is the problem. Especially those with low incomes. Their income is from SS, annuities and/or pensions. They don't have the savings because they were low or middle wage workers. Indeed, the income should tip you off. If you had a high paying job, your pension usually reflects that higher wage.
