Elderly Poverty

1
Elderly Poverty

• Summer 2004
• Slide Show

2
RETIREMENT FACTS

• Median age at retirement 60.5
• Average Social Security recipient collects at
  62.5
• Benefits reduced at 62
• Major factor in retirement adequate income
• Nine out to ten US pension plans provide
  incentives for early retirement

3
SOCIAL SECURITY

• 66 of people over 65 received at least half of
  their income from Social Security
• 16 of people over 65 received all of their
  income from Social Security
• 85 of people over 85 receive all of their income
  from Social Security
• Women who are divorced are vulnerable

4
SOCIAL SECURITY

• 42 of all elderly income comes from Social
  Security
• Average monthly benefit is about 800 (replaces
  44 of preretirement income)

5
ASSET INCOME

• 33 of older households report no asset income
  particularly the very old, women and minorities
• 26 of those with asset income report less than
  500 a year
• 33 (typically married couple households)
  received more than 5000 a year
• Typically have more net worth than people under 35

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FACTS ABOUT ELDERLY

• Large percentage of elderly are at Risk or
  Vulnerable
• 28 have incomes below 150 of poverty guideline
• 60 of that above group live on less than 10,000
  a year
• 93 of that income comes from SS and SSI

7
LABOR FORCE

• 16 of men over 65
• 9 of women over 65
• 3 are seeking employment
• Financial need most important criteria
• Some work because they choose to

8
HEALTH AND RETIREMENT

• Poor health more important than money in
  retirement planning
• Poor health combined with inadequate resources
  will delay retirement
• Health problems motivate to leave physically
  demanding and stressful jobsNote ethnic
  minorities are often in these physically
  demanding jobs

9
HEALTH AND RETIREMENT

• People retire to escape boring and repetitive
  jobs.
• People with high school education retire earlier
  than well educated

10
Satisfaction with Retirement Indicators

• Degree of choice
• Amount of planning and preparation
• Financial Security and Health are major
  determinants of retirees satisfaction with life
  rather than retirement status per se
• Higher economic status associated with higher
  health status

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Satisfaction with Retirement Indicators

• Health often improves after retirement
• Retirement does not increase mental health
  problems but can improve mental health

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SATISFACTION

• Perceptions about daily activities
• Internal locus of control
• Control over timing
• Suitable living environment
• Adequate social support system

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LACK OF ADJUSTMENT

• Poor health
• Inadequate family finances
• Marital problems
• Difficulties making transitions
• Lower status have more health and financial
  problems and less satisfaction

14
LACK OF ADJUSTMENT

• Higher status have greater satisfaction with
  non-work pursuits, more social contacts and more
  structured opportunities

15
WOMEN AND RETIREMENT

• Career women retire early (particularly those who
  were never married)
• Women are less likely to be fully retired than
  men (Enter labor force later)
• White men are more likely to be retired than
  white women or black women
• Patterns for ethnic minority males are more
  difficult to assess

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WOMEN AND SATISFACTION

• Retirement plans and satisfaction are influenced
  by health and their own pension
• The full-time housewife role may not be satisfying