Poverty and the Elderly - Part 2

The first part of my blog on Poverty and the Elderly is below - October 15th. The following is a continuation of excerpts from "Under the Radar: Poverty Among Older Adults in New York City" (May 2007 New York Citizens’ Committee on Aging, Inc.)

With such low incomes, many seniors have a difficult time covering even their most basic expenses. Nearly half of all renters age 65 or older in New York City spend at least 35 percent of their household income on rent. In addition, research shows that on average older Americans spend 19 percent of their total income on “out-of-pocket” medical expenses annually, with more than half of these payments going toward prescription drugs and dental care (despite Medicaid coverage for many). (Crystal, S.; Harman, J.; Sambamoorthi, U.; Johnson, R.; And Kumar, R. "Out of Pocket Health Care Costs Among Older Americans." Journal of Gerontology: Social Sciences 55B, no. 1 (2000): S51–S62.) As a result, debt has increased substantially among the senior population. Debt held by families headed by a person age 75 or older increased to 40.3 percent in 2004; this is up from 29.0 percent in 2001.12 A recent study by the Food Bank of New York City has shown that nearly one-fifth (18 percent) of older people in the City are without savings and “would not be able to afford food for themselves and their families immediately after losing only one month of income.” (The Food Bank for New York City. “Hunger: An Aging Issue,” 2005.) Seniors disproportionately rely upon emergency food pantries and soup kitchens in New York City. While only 12 percent of the City’s total population, New Yorkers age 65 or older account for 24 percent of all emergency food participants.

Generally speaking, there are three groups of seniors who descend into poverty (i.e. experience a large and ongoing discrepancy between income and expenses). These three groups include: 1.) those who have been economically insecure throughout their lives and thus have few resources; 2.) those who had limited resources for retirement (such as pensions) but experienced a diminution of them; and, 3.) those who undergo a crisis or other unforeseen event that rapidly plunges them into poverty (such as the death of a spouse). For a good number of these seniors living in poverty, the prospect of a golden retirement simply does not exist. As a result of various factors, seniors most at risk of experiencing poverty brought on by one of the situations described above include: women; those over age 75; individuals with disabilities or chronic health problems; immigrants; ethnic and racial minorities; those who live alone; and those less formally educated. Moreover, individuals with more than one of these characteristics are at increased risk.

The Future Outlook
New York City’s elderly population, which stood at 937,900 in 2000, is projected to increase to 1,352,000 by 2030 – this represents a 44.2 percent increase. If poverty were to remain at the City’s current 20.3 percent level, (actually more like 32% according to the NYC Center for Economic Opportunity’s more realistic poverty measure) over 274,000 older New Yorkers will live in poverty by 2030 -- this represents a 70 percent increase from 2005. The problem of poverty among New York City’s older population must be addressed now to assure quality of life is protected and enhanced for both the current and future generation.

This report was completed by Board Members of the New York Citizens’ Committee on Aging: Jessica Walker, Senior Policy Analyst at United Neighborhood Houses of New York; with Mary Mayer, NGO Representative of the United Nations’ International Federation on Ageing and Former Deputy Commissioner of the New York City Department for the Aging.

I am happy to say that the organization I work for, the New York Citizens’ Committee on Aging, has made this a priority project – using our resources and reaching out to the community to help us make a difference in lifting NYC's seniors out of poverty. For a copy of our full report and information on how to get involved e-mail me at info@nyccoa.org or call 212-353-3950.