"They must of wasted their life ."
The error in judgement you are making is that you assume because they are in their 60s living in government housing, you somehow can divine all of their lives and sum it up as having been wasted. There are many, many people who never make it to their golden age and spent most of their life busting their tails to pay for mortgages, cars, fancy things, etc., only to die before being able to enjoy the time they sacrificed. Some of the people you saw living simpler lives on the surface observation might have some pretty amazing adventures they have been on. You would never know because you are assuming way too much based on your pre-conceived notions about people who are now living quite basic in their golden years.
Some people use time while they can, and while they are healthy. Some people save it til they end...not knowing exactly when "the end" is.