The Elderly Poor are Still With Us
Not all baby boomers are enjoying luxury cruises
Sometimes the public discourse creates the impression that all seniors are spending their children’s inheritances taking Viking River cruises. Unfortunately, the reality is that many are living Social Security check to Social Security check, one extra cost away from not being able to afford their medications or keep a roof over their heads.
Few Seniors with Deep Pockets
I recently had the opportunity to speak about their situation with Joe Seldner, the founder of the Senior Poverty Prevention Project. He explained that depending on the definition of “poverty” one uses, 20% to 45% of older Americans are poor. “Anywhere from 20 to 30 million people over 55 have no savings. But the vast majority of people over 55 are either on the margins or in genuine financial trouble. A ridiculously large percentage of the population can't afford a $400 emergency.”
According to the National Council on Aging, the median income of older adults in 2022 was just under $30,000, about twice the federal poverty level. One in ten had income under $10,000 a year.
Kiplinger, Seldner said, pegs the median net worth of Americans aged 75 and above at $335,000, which includes their home equity, if any. This means that half of this older group have less, and if their net worth is home equity, they have little or no cash to pay for any needs that may arise.
Not Their Fault
Seldner argued back against the ethos that people are personally responsible for any financial difficulties they may face in their later years. “Did those people screw up by having health problems and divorces and career choices that were rendered obsolete? I don't think so. I don't think you can say somebody is responsible for going through a difficult divorce because they didn't recognize that their partner was gonna be difficult.”
If you’re older, and you “encountered crises that depleted your savings, you’re not going to get a job in the tech world. Even if you're 35 years old, you're too old in the tech world. If you're 65 years old, you're a dinosaur.”
Dim Prospects
Seldner argued that the policies of the Trump administration will make it even more difficult for low-income seniors. He was a bit fatalistic about their prospects. To the extent he’s optimistic it’s that baby boomers are often more politically engaged than younger voters. “I'm heartened by the fact that I see a lot of older people in these protest lines.”
Topics
00:22 Meet Joe Seldner: Founder of the Senior Poverty Prevention Project
02:59 The Reality of Senior Poverty in the U.S.
05:16 Challenges and Solutions for Low-Income Seniors
09:23 Impact of Policy Changes on Senior Welfare
12:00 Gender Disparities in Senior Poverty
13:09 Economic Inequality and Its Effects on Seniors
15:28 The Decline of Pension Plans and Its Consequences
22:13 Financial Literacy: A Key to Future Security
24:46 Recommendations for Policymakers and Baby Boomers
28:31 Conclusion and Final Thoughts