Um...the families did get $328,000 as a lump sum. Invested wisely that can go a long way.
Have you ever looked carefully at the concepts behind portfolio management in distribution? Typically one can safely withdraw about 5% of a portfolio per year and have it last a lifetime. The lowest cost money managers will charge about 1% per year, leaving 4% for living expenses. This leaves just a shade over $13k per year available as living expenses.
Now this is better than a poke in the eye with a sharp stick, but is not going to support a family with one parent and four children.
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Now the real deal is that they are going to get Social Security benefits, and when these are tallied up, and you add in safe withdrawal from the $328k they will probably make it, but there will be few luxuries...