Poverty and the Elderly

Today is the day we blog about poverty, a world wide issue, even more scary in the current economic climate. In my retiree job as part time director of a small NYC advocacy organization, the New York Citizens’ Committee on Aging, Inc., we took on the issue of elder poverty when we discovered an alarming statistic. According to the data from the U.S. Census Bureau, "2005 American Community Survey", over 20% of New York City’s older adults were poor! And this in a city with such a high cost of living. We have made elder poverty our project for over a year, holding a May 2007 forum with seniors and key leaders in aging services, and following up with our colleagues to find ways to address this issue.

Needless to say, over the past year things have gotten a lot worse. Sometimes I feel that even older New Yorkers, like myself, lucky enough to have savings and a pension in addition to Social Security and Medicare, are just a step away from “poverty”, if that means being unable to afford housing, food and health care. So imagine how much harder the struggle is for our older neighbors on fixed incomes and such limited funds. What follows is an excerpt from our report, Under the Radar: Poverty Among Older Adults in New York City (May 2007 New York Citizens’ Committee on Aging, Inc.)

Poverty is more than a lack of financial resources; it is a serious threat to health and well-being, dignity, and the ability to participate fully in our society.(Economic and Social Council of the United Nations Commission on Population and Development. “Monitoring of population programmes, focusing on the changing age structures of populations and their implications for development, Report of the Secretary-General,” December 28, 2006.)

Unfortunately, in recent years the problem of poverty amongst older adults has become increasingly invisible. Many people believe that the vast majority of seniors are affluent – or at least receiving adequate assistance. The major cause behind this misconception is the success of programs such as Medicare and Social Security, which have greatly alleviated economic insecurity among older adults. In fact, poverty among Americans age 65 and older has fallen from one-in-three persons in 1960 to one-in-ten today. (Whitman, D. & Purcell, P. (2006). Topics in aging: Income and poverty among older Americans in 2005.)

These successes cannot be denied and our country should be proud of this progress. Work remains, however, for too many seniors have been left behind. While poverty among persons age 65 and older in the United States has decreased, it has actually risen in New York City. (New York City Department for the Aging. “Annual Plan Summary, April 1, 2007 – March 31, 2008, For Older Americans Act and New York State Community Services for the Elderly Program and Expanded In-Home Services for the Elderly Program,” September 2006.)

In 2005, the U.S. Census Bureau set the poverty threshold for
individuals age 65 and older at $9,367. (U.S. Census Bureau. “Poverty Thresholds 2005.”) If a senior’s annual pretax income falls below this amount then he or she is considered “poor.” While updated annually, this threshold is the same throughout the contiguous United States and does not reflect regional differences in cost-of-living. According to this measure, 9.9% of older Americans lived in poverty in 2005, which represents a continued decline of poverty among this age group nationwide. Yet, the poverty rate among older adults living in New York City was twice the national rate: 20.3%. (U.S. Census Bureau, 2005 American Community Survey.) This is a significant problem that is not mirrored in all urban areas. In fact, among the twenty most populous cities in the United States, New York is second only to Detroit, Michigan in the percentage of its seniors living in poverty.

New York City is home to over 943,000 people who are age 65 or older. Approximately 191,653 of these seniors live in poverty, but what is known about them? According to the U.S. Census: 68.3 percent of these seniors are female; 37.3 percent are male. 47.9 percent are age 65 to 74; 52.1 percent are age 75 and older. 59.8 percent experience one or more physical, mental or emotional disabilities.

Poverty is most prevalent among racial and ethnic minorities …. The poverty rate among the City’s Hispanic elderly population is three times the national average, while the rates for Black and Asian elderly are more than double that rate.

Disability can be either a cause or consequence of poverty. In New York City, the percentage of seniors who are both poor and disabled is over twice the national rate: 5.5% versus 12.1%

In basic terms, poverty results from the discrepancy between income and expenses. A person is “poor” when his or her income is woefully inadequate to cover expenses that meet basic needs, such as food, housing and transportation. In New York City these expenses are immense. In fact, New York City is the most expensive city in which to live in all of North America (NNMoney.com. “World’s Most Expensive Cities,” June 22, 2005.)

Since this is such an important topic, to be continued.....