Aging With Economic Insecurity: Resources for Older Americans

As the fastest-growing population in the country, older adults face both opportunities and challenges. By 2060, the population of adults older than 65 is expected to almost double, increasing from 16% to 23%. Older adults are living and working longer. Supporting seniors is an important mission for social workers. According to the Economic Policy Institute, 48% of seniors are economically vulnerable. And while the poverty rate for those 65 and older remains relatively low, the total number of individuals living in poverty continues to increase — and will do so as that generation ages (PDF, 1.5 MB).

Most seniors rely on retirement incomes, Social Security and Medicare for financial security, which aren’t always enough to cover the basic necessities. According to the National Council on Aging (NCOA), millions of older adults are struggling to meet their monthly expenses, even though they’re not considered poor because they live above the poverty line.

While living in poverty is a challenge no matter your age, older adults who live in poverty or face economic insecurity struggle with an array of issues unique to their phase of life, such as housing costs, health care bills, transportation, meal planning, dwindling savings and job loss, as reported by NCOA.

The Kaiser Family Foundation reports that 4.7 million adults older than 65 lived in poverty in 2017, or approximately 9.2%. Those numbers increase when using the Supplemental Poverty Measure, which is published by the U.S. Census Bureau and takes into account other important factors such as financial resources and out-of-pocket spending. Women, minorities and older seniors are among the most vulnerable groups. The District of Columbia and Louisiana have the highest rates of poverty for older Americans, while Connecticut and Oregon have the lowest. 

Go to a tabular version at the bottom of this page for information on the number of older adults living in poverty in 2017.

Go to a tabular version at the bottom of this page for information on which states with the highest and lowest percentage of older adults living in poverty.

Social workers play a critical role in advocating for the growing senior population — in particular, those living in poverty. They can offer support and resources to address physical, psychological, social and economic concerns. From providing direct services to influencing policy decisions, social workers are committed to serving the needs of the older population and promoting greater quality of life.

The USC Edward R. Roybal Institute on Aging provides information about healthy aging; partners with organizations that provide resources and programs for aging, low-income minorities; and conducts research that leads to new evidence-based interventions that improve the lives of older adults around the world. USC Roybal integrates activities with the USC Suzanne Dworak-Peck School of Social Work, which has a Department of Adult Mental Health and Wellness, to prepare students to improve the mental health and physical well-being of individuals across the adult lifespan.

There are a number of other national organizations that address specific concerns related to aging with economic insecurity. Continue reading below to learn more about the economic issues facing older adults and the organizations that are addressing the different needs of this population.

About one-fifth of adults age 65 and older are in the workforce (as of March 2020). Seniors are working longer because of financial necessity. Older adults living in poverty tend to be very reliant on social security with little savings.Working people who are economically insecure often stay on the job past retirement age.

Higher out-of-pocket medical costs can contribute to higher rates of poverty among seniors. Health expenditures are growing, medical spending for older adults is roughly twice as much as middle-aged adults, and rising healthcare costs contribute to more bankruptcy filings. It’s increasingly difficult for seniors to manage rising health care costs as a result of increasing costs for the federal government to operate Medicare.

Social connections are important. Social isolation and loneliness can lead to worsening health for seniors and hinder their abilities to perform basic daily tasks. Older adults also face mobility impairments, which can leave them unable to socialize with friends outside of the home as a result of trouble walking, moving around or keeping balance. The AARP reports that 17% of seniors are isolated, and they face a 26% increased risk of early death as a result of feeling lonely.

In 2017, approximately 1 in 12 adults age 60 and older experienced food insecurity, which can cause them to skip meals or eat less. And, because many are above the poverty line, they can’t always access public health benefits.

The NCOA indicates that the percentage of households headed by an adult 65 and older with any debt increased (PDF, 2 MB) from 41.5% in 1992 to 60% in 2016 — and more older adults are taking on credit card debt, too: In 2001, only 24.2% of senior households held credit card balances. By 2016, 34.2% did.

In 2016, about a third of households age 65 and older spent more than a third of their incomes on housing (PDF, 2.4 MB), according to a report from the Joint Center for Housing Studies of Harvard University. The report notes that older adults who spend a significant portion of their incomes on housing sacrifice other necessities like food and health care. The same report also points to increasing rates of homelessness among older adults and a shortage of accessible housing for adults with functional limitations as significant challenges for this age group.

Are you interested in pursuing a career in social work with a focus on improving the lives of older adults? Learn more about the MSW@USC’s Department of Adult Mental Health and Wellness.

The following section contains tabular data from the graphic.

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Source: Kaiser Family Foundation; Issue Brief: How Many Seniors Live in Poverty? (PDF, 819 KB)

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Created by the MSW@USC, the online Master of Social Work program at the University of Southern California