Elderly’s Finances Improve Dramatically

While the incomes of most American households have remained stubbornly flat over the last three decades, the elderly have seen their financial circumstances improve dramatically, far outpacing every other demographic group, the Census Bureau reported Monday.

An analysis of household income from 1969 to 1996 showed a 57% rise in real median income for married couples older than 65, dwarfing the 6.3% increase for all households.

The improvements can be traced largely to increases in Social Security benefits and pensions but also reflect the combined effect of the GI Bill, which sent many more to college, a booming real estate market and the entry of more women into the labor force.

The result has been to create a very different profile of retirement and aging. As late as the 1960s, many elderly people ended up in county homes for the aged, a bed of last resort for those without income, family or health-care coverage. Now, most older Americans are able to either live at home or, in a growing number of cases, move into retirement communities and assisted-living facilities.

The transformation has been dramatic: The elderly, who in the 1960s were the segment of the population most likely to live in poverty, now are the least likely to be poor.

While the elderly have enjoyed the largest gains, for the most part older Americans lead relatively modest lives. Fewer than 13% of older married couples are considered “high income,” compared with nearly 17% of all households.

Overall, the median household income for married couples 65 or older was $29,210 in 1996, far above the inflation-adjusted $18,553 of 1969, but well below the median figure of $35,172 for all households.