|
PensionReforms' summary and comments
The Social Security Administration in the US is responsible, amongst other things, for looking after government-supplied incomes and benefits to the old. The report gathers data about households led by someone over age 65. This was last done in 2004 and PensionReforms looked at that version here.
There were 27.4 million 'economic units' covered in 2006, up from 26.9 million in the 2004 report. Of these, 11.3 million were couples (41%) and 16.1 million were 'single units' (59%).
Unsurprisingly, "[a]ged units 65 to 69 are the most likely to be married couples (51.7%), while aged units 80 or older are most likely to be nonmarried women (57.8%). The younger age groups also have a greater proportion of minorities than the older cohorts."
"The median income for units aged 65 or older is [US]$23,194, but there are wide differences within the total group. Approximately 15% have an income of under $10,000, and roughly 20% have an income of $50,000 or more." And, the median income falls with age, mainly attributable to the "disproportionate number of nonmarried women in older age groups."
Married couples have a median income nearly 2½ times that of the nonmarried with "white aged units" receiving more than "...Asian aged units by almost one-half and that of black aged units by almost three-fourths."
Over the 44 years to 2006, the real (inflation adjusted) increase in median incomes was 99.6% for married couples and 111.2% for singles. Over a shorter period (39 years to 2006), the "white units" income increased 114.8% while blacks increased 77.5%.
"Nearly 9 out of 10 aged units receive Social Security benefits. Asset income is the next most common source of income, received by more than half of the aged. Two-fifths receive retirement benefits other than Social Security, and nearly one-quarter have earnings. Public assistance and veterans' benefits are each received by less than 4%. Noncash benefits, including food stamps and housing and energy assistance, are received by over 9%."
"In 2006, 89.3% of married couples and 87.9% of nonmarried persons aged 65 or older received Social Security benefits. Social Security was the major source of income (providing at least 50% of total income) for 52% of aged beneficiary couples and 71.8% of aged nonmarried beneficiaries. It was 90% or more of income for 20.4% of aged beneficiary couples and 40.8% of aged nonmarried beneficiaries."
Work-related income is, as expected, associated with the youngest age groups (46.2%) than with the oldest (6.4%).
"In 1962, 69% of units aged 65 or older received Social Security benefits; in 2006, 89% of them did. Most of that increase occurred in the 1960s. Receipt of other pension income, which more than doubled from 1962 to 1992, has decreased slightly since then. The proportion of aged units with asset income, which had been about two-thirds since 1980, has dropped since 1990 and leveled off since 2000. The proportion with earnings has declined since 1971 and has been between 20% and 25% since 1980. The proportion receiving public assistance has also declined and is now about a third of its 1962 level."
The report also looked at the major types of income received:
"Aggregate income for the aged population comes largely from four sources. Social Security accounts for 36.7%, earnings for 27.8%, pensions for 17.9%, and asset income for 14.9%. Only 2.7% comes from other sources."
"The median family income for persons aged 65 or older is $31,744, but there are wide differences within the total group. Approximately 8.2% have family income of under $10,000, and roughly 30.3% have family income of $50,000 or more."
"Median family total income is highest for the youngest cohorts. In addition, in all age groups, women have lower median family total income than men, from $37,000 for woman aged 65 to 69 to $21,600 for women aged 80 or older."
"Median family income of men is nearly one-third higher than it is for women. Asians have the highest median family income, followed by whites, Hispanics, and blacks."
"Social Security was the predominant source of family income for one-fifth of elderly men in beneficiary families and over one-quarter of elderly women in beneficiary families. Social Security accounted for less than half of family income for half of the elderly men in beneficiary families and 42.6% of elderly women in beneficiary families."
"The variations in family income by sex, marital status, and race are reflected in the poverty rates for those subgroups of the aged. Nonmarried persons, blacks, and Hispanics have the highest poverty rates, ranging from 15.6% to 22.7%. An additional 9.8% to 10.3% of nonmarried persons, blacks, and Hispanics have incomes between the poverty line and 125% of the poverty line (the near poor)."
"In keeping with the lower family income of older age groups, those groups generally have higher rates of poverty and near poverty (income between the poverty line and 125% of the poverty line)."
PensionReforms notes that there are not many surprises in these findings. Poverty levels amongst those seemingly worst placed to do anything about it should be a concern - the unmarried, the older and what, in the US are called the "minorities". Since the 2004 report, these have worsened slightly. (File size 940 KB; 36 pp) 346