SelfhelpMagazine

by Cathleen Jo Faruque, LICSW, DAPA

Those who proclaim that most of America's elderly are living in economic bliss are ignoring not only the millions of elderly poor, but also the millions who are economically vulnerable. According to the U.S. Bureau of Census, approximately 8 million elderly Americans fall into the "economically vulnerable" category. When these people are added to the millions of elderly men and women officially counted as poor, it is clearly a myth that the elderly control the nation's wealth.

Many older people are facing a failed retirement, and they continue to work just because they like to work, but because they have to work to survive.

The plain and simple fact is that millions of elderly American's live on the edge as marginal members of society. This accounts for a majority of the total American elderly population (U.S. Bureau of Census, 2005).

This situation is particularly precarious for certain groups of older Americans, such as ethnic minority elderly who account for 70% of the poor and economically vulnerable in the United States (Social Work Almanac, 1995). Elderly Americans with incomes between the poverty lines are in fact uniquely vulnerable. They run the greatest risk of falling through the cracks of the "safety net" of programs intended to alleviate poverty and near-poverty.

Typically, the economically vulnerable have too much income to qualify for means tested programs such as Supplemental Security Income (SSI) and Medicaid. Yet, their limited incomes make it difficult to purchase basic necessities, particularly if they encounter extraordinary and unexpected expenses such as high medical costs not covered under Medicare.

Elderly Americans who are economically vulnerable are less likely to be renting in subsidized or below market housing, are less likely to have Medi-Gap coverage and are more than likely to rely on their Social Security checks as their primary source of income. When facing economic and/or health problems, the only way they can improve their well being is to spend down their savings and thereby qualify for means tested cash and in-kind support.

The risk of being widowed or of being hospitalized unexpectedly means that the elderly may be more vulnerable to sudden and unpredictable changes in their family and financial relationships than any other adult age group. If their incomes drop, they have more difficulty in recouping their losses.

For most elderly poor, housing represents the number one expense. For poor and economically vulnerable, the cost of providing and maintaining shelter can consume a third or more of total income. Housing is the most immediate visible sign of deprivation, especially in the inner cities and many rural areas.

Although many elderly may own their own homes, large numbers of elderly poor live in deteriorating or substandard housing or in housing that eats up so much of their monthly income that little is left for other basic necessities. For those who refinanced when interest rates were low, many have already spent the nest egg of equity they held in their homes, and an unprecedented number are facing foreclosure.

These circumstances for our nation's elderly underscore the basic fact that a large number of elderly Americans are living in poverty or dangerously close to it. Three out of every seven elderly Americans are either poor or economically vulnerable. These facts relate that we have a long way to go before we can declare victory against poverty for the elderly. Too many elderly spend their "golden years" living in the shadow of poverty.

With the current American wars abroad, the higher prices in gasoline and foodstuffs, economic debt and housing markets facing tumultuous times, we can expect that our nation's elderly will be faced with fewer viable alternative in the future. There are resources available to help our nation's elderly, but first, we must rid ourselves of the myths that help ageism flourish in our society.

References:

Gingsberg, L. (1995). "The Social Work Almanac (2nd Ed.)". Washington, DC: National Association of Social Workers.

U.S. Bureau of Census (2005). "Statistical Abstract of the United States". Austin, TX: Reference Press.

About the Author:

Cathleen Jo Faruque, LICSW, DAPA is a Licensed Independent Social Worker in the state of Minnesota and a Certified Diplomate of the American Psychotherapy Association. She is currently an Assistant Professor at Winona State University's Social Work Program in Minnesota.