Retiring just on Social Security

Summary

Marketplace Morning Report — “Retiring Just on Social Security”

Date: November 25, 2025
Host: David Brancaccio
Main Theme:
This episode examines the challenges faced by retirees relying solely on Social Security, illustrated by the story of James Chavis of Durham, NC. It also covers recent economic updates, including delayed retail sales data and its implications for consumer spending leading into the holiday season.

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Key Discussion Points & Insights

1. Consumer Watchdogs and the CFPB’s “Humility Pledge”

Timestamps: [00:52] – [02:13]

• The Consumer Financial Protection Bureau (CFPB) announced that its bank examiners will begin reciting a “humility pledge” to financial institutions before conducting reviews.
• The pledge focuses on:
  • Addressing pressing threats to consumers, especially service members and veterans.
  • Avoiding duplication with state and other regulators.
  • Providing advance notice of upcoming exams.
• Union Response: CFPB’s own union members countered, saying advance notice is already standard and highlighted their past successes, such as forcing banks to return money to consumers (e.g., the Wells Fargo fake account scandal).
• Notable Quote:
  • Nancy Marshall Genzer:
    • “CFPB examiners have forced banks to return money to consumers and help discover scams like the fake bank accounts Wells Fargo employees opened in customers’ names.” [01:40]
• Uncertainty clouds the agency’s future, with OMB Director Russell Vogt reportedly halting CFPB bank exams and threatening to shut down the agency next year.
• Tone: Straightforward, cautious skepticism over the efficacy of the new pledge.

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2. Retail Sales Data & Consumer Health

Timestamps: [02:13] – [04:17]

• Discussion with Lauren Seidel Baker (ITR Economics):
  • Latest (delayed) retail sales data—though not recent—still shows the consumer sector is “spending.”
  • There's an emerging divide: lower income households are feeling squeezed, while middle and upper incomes are “a little bit more comfortable at the moment.”
  • Persistent inflation continues to impact real spending.
  • Holiday Shopping Outlook: Pre-Black Friday shopping has kicked off, but spending increases may be due to higher prices rather than increased volume.
  • Notable Quotes:
    • David Brancaccio (humorous tone): “From prehistory, when dinosaurs ruled the earth…we get today’s long delayed retail sales report…” [02:30]
    • Lauren Seidel Baker: “Really what this tells us is that the bottom didn’t fall out from under the economy at this… the consumer is still out there spending.” [02:46]
    • Lauren Seidel Baker: “We’re spending more because things simply cost more this year.” [03:57]
• Tone: Analytical with light humor to address economic uncertainty.

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3. Living on Social Security: James Chavis’s Story

Timestamps: [05:21] – [07:58]

• Profile: James Chavis, 71, Durham community activist, former Social Security disability recipient (since 1998), now retired and reliant on Social Security income.
• Daily Reality:
  • Receives ~$1,200/month; struggles with basic expenses, especially healthcare.
  • “No room for anything superfluous or fun.” [06:41]
  • Living “paycheck to paycheck”—he can’t splurge like people with additional income.
• Poverty Statistics: Without Social Security, over 37% of older Americans would live below the poverty line; still, 10% of older adults do so even with benefits.
• Cost of Living Adjustments:
  • Upcoming Social Security COLA: 2.8% increase in January, barely enough to keep up with rent and basic needs.
  • “You got to start in January making sure you put aside some money to start for that increase in rent.” [07:22, James Chavis]
• A Message to Younger Generations:
  • Urges youth to value and contribute to Social Security.
  • “That money comes out before you even touch it.” [07:44]
  • Appreciates historic establishment: “It as a great thing that they started back there then.” [07:54]
• Notable Quotes:
  • James Chavis: “It’s nothing fun to spend your money on when you ain’t got nothing to spend on when you got to watch every penny.” [06:41]
  • James Chavis: “Folks on Social Security that does not have another income live from check to check, and they cannot splurge like other folks think they can.” [06:52]
• Tone: Empathetic, matter-of-fact reflection on economic hardship.

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Notable Quotes & Memorable Moments

• David Brancaccio, on older sales data:

  • “[W]hen dinosaurs ruled the earth and the power of fire had not yet been harnessed, we get today’s long delayed retail sales report...” [02:30]

• Lauren Seidel Baker:

  • “The bottom didn’t fall out from under the economy at this. Some of the numbers maybe didn’t quite reach consensus, but these are still decent.” [02:49]

• James Chavis, on retirement reality:

  • “No, it’s not enough.” [06:19]
  • “It’s nothing fun to spend your money on when you ain’t got nothing to spend on when you got to watch every penny.” [06:41]
  • “Folks on Social Security that does not have another income live from check to check, and they cannot splurge like other folks think they can.” [06:52]
  • “So you got to, you got to start in January, making sure you put aside some money to start for that increase in rent.” [07:22]
  • “That money comes out before you even touch it... as a great thing that they started back there then.” [07:44–07:54]

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Important Timestamps

• CFPB Humility Pledge: [00:52] – [02:13]
• Retail Sales & Holiday Outlook: [02:13] – [04:17]
• Living on Social Security – James Chavis’s Experience: [05:21] – [07:58]

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Summary

This episode of Marketplace Morning Report provides a snapshot of current economic challenges as seen through two lenses:

• The macro view of persistent inflation and uneven economic recovery, explored through expert economic analysis and government data.
• The micro view of individual hardship, as experienced by James Chavis, whose fixed Social Security income is a precarious lifeline with which he navigates poverty, rising costs, and a lack of financial margin.

The tone remains professional yet empathetic, inviting listeners to consider not only the numbers but the human stories behind them.

Transcript

[Announcer]

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[David Brancaccio]

Is Humility the quality you're looking for in watchdogs on guard for consumer exploitation? I'm David Brancaccio in Los Angeles. The Consumer Financial Protection Bureau says going to start requiring its bank examiners to recite a humility pledge to financial institutions before starting a review. It's not clear how much of an effect this will have. Marketplace's Nancy Marshall Genzer reports.

[Nancy Marshall Genzer]

In a statement, the CFPB describes its own supervision division as a weaponized arm. The pledge says the CFPB will focus banking exams on pressing threats to consumers, especially service members and veterans. The pledge also promises the CFPB will avoid duplicating things already being done by states and other regulators and says financial institutions will get advance notice of exams. In their own statement, CFPB union members say they already give advance notice and they point out that CFPB examiners have forced banks to return money to consumers and help discover scams like the fake bank accounts Wells Fargo employees opened in customers names. The union also says Office of Management and Budget Director Russell Vogt has stopped all CFPB bank exams this year and says he's going to shut down the agency by next year. I'm Nancy Marshall Genser for Marketplace.

[David Brancaccio]

The official measure of that engine of economic activity, retail sales, is out this morning. Finally it was as they say on ebay, vintage. Lauren Seidel Baker is with the New Hampshire based consultancy ITR is Economics. Thanks for joining us.

[Lauren Seidel Baker]

Thank you. Great to be here.

[David Brancaccio]

All right, so from prehistory, when dinosaurs ruled the earth and the power of fire had not yet been harnessed, we get today's long delayed retail sales report from the US Government. It is did you see September's number? I mean, is that worth anything to.

[Lauren Seidel Baker]

You, I won't say it's worth nothing. I'm an economist so I cling to my data by my fingernails. Really what this tells us is that the bottom didn't fall out from under the economy at this. Some of the numbers maybe didn't quite reach consensus, but these are still decent. This shows that the consumer is still out there spending. Unfortunately, there's a little bit more bifurcation in that consumer. We're really seeing the lower end get squeezed while the middle to upper income bracket is a little bit more comfortable at the moment. And then on the inflation side, we know that there is some sticky, some persistent inflation. This PPI release really just resonates with that ongoing trend.

[David Brancaccio]

I'm sure you're about as frustrated as we are here trying to get a sense of which way this holiday shopping season is going. I mean you can kind of pick your source and get a different prediction for a little bit better than last year. Not so good treading water. I mean what, what's your sense of shopping this season?

[Lauren Seidel Baker]

So we haven't yet entered that critical Black Friday to Christmas period. My overall read is that the pre Black Friday, those real early bird shoppers they have been out in for. However, it goes without saying that higher inflation, these higher prices, that is supporting a lot of the gain. It's not just real volume growth. We're spending more because things simply cost more this year.

[David Brancaccio]

Lauren Seidel Baker is at the New Hampshire based economics consultancy ITR Economics. Thank you so much.

[Lauren Seidel Baker]

Thank you.

[Announcer]

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[David Brancaccio]

This week we're hearing the experience of people who are not only on Social Security, but who rely on it. If not for Social Security benefits, more than 37% of older people would live below the official poverty line. That's according to the center on Budget and Policy priorities. Still, about 10% of older adults still live in poverty today. Marketplace's senior economics contributor Chris Farrell spent time with one retiree in Durham, North Carolina, living at that economic line.

[Chris Farrell]

James Chavis is helping set up for a community meeting for one of the local Durham chapters of Partners Against Crime.

[James Chavis]

Jerome, can we use that board in the senior room? Can I wash it off and use it?

[Announcer]

Yes.

[Chris Farrell]

James is a longtime community activist. He went on Social Security disability in 1998 after he had hip surgery. Now 71, he still uses a cane. And he gets the retirement income benefit.

[James Chavis]

No, it's not enough.

[Chris Farrell]

His monthly check barely covers the bills, especially the high cost of doctor visits.

[James Chavis]

And don't go into the hospital. You will get a bill. And that is not no little bill.

[Chris Farrell]

James gets about twelve hundred dollars a month from Social Security. There's no room for anything superfluous or fun.

[James Chavis]

It's nothing fun to spend your money on when you ain't got nothing to spend on when you got to watch every penny.

[Chris Farrell]

James says he's an example of living paycheck to paycheck.

[James Chavis]

Well, folks on Social Security that does not have another income live from check to check, and they cannot splurge like other folks think they can.

[Chris Farrell]

Social Security payments adjust every year based on inflation. Next year's cost of living increase will be 2.8%, and it goes into effect in January, thanks to high housing costs in Durham. The boost allows James to tread financial water at best.

[James Chavis]

So you got to, you got to start in January, making sure you put aside some money to start for that increase in rent.

[Chris Farrell]

When he meets younger adults while volunteering, he tells them they need to pay into the system so that they'll have an income when they retire, because that.

[James Chavis]

Money comes out before you even touch it.

[Chris Farrell]

He says they should be grateful President Roosevelt signed Social Security into law back in 1935, and they should look at.

[James Chavis]

It as a great thing that they started back there then.

[Chris Farrell]

For millions of retirees since then, Social Security income is critical. In Durham, North Carolina, I'm Chris Farrell for Marketplace.

[David Brancaccio]

And in Los Angeles, I'm David Brancaccio. You're listening to the Marketplace Morning Report. We're from APM American Public Media.

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