There is a "story" go around that seems to be true, and I want to verify it.
It goes something like this.  The US government has determined that in
a study of 65 year old Americans, 1% were wealth, 4% were comfortable
and financially independent, and 95% depend on government assistants,
hand-outs and family members to support their financial needs.

The story goes on to suggest this study was done in 1950 and then
later repeated recently... and that the results are the same.

I'd like to find supporting documentation for both of these studies.

---

Request for Question Clarification by bobbie7-ga on 13 Oct 2005 14:46 PDT

Greenideas,

According to the document "Measuring the Years: State Aging Trends &
Indicators" by the Center on an Aging Society Health Policy Institute,
in 2000, only 5 percent of seniors received public assistance,
compared with 14 percent of seniors in 1962.

Excerpt
"As recently as the 1960s, old age was strongly associated with
poverty. In 1960, for example, more than one-third of the population
age 65 and older was poor. Today, however, only about one-tenth of
seniors are poor. This change is attributable to a significant degree
to Medicare and the automatic annual adjustments in Social Security
benefits to a cost of living index. In 2000, the vast majority?90
percent?of the population age 65 and older received Social Security
benefits?a much larger percentage than the 69 percent that
received Social Security in 1962. Income from assets and pensions is
also more prevalent now than in 1962 (although the proportion of
people with income from assets and pensions has declined somewhat in
recent years). By contrast, reliance on public assistance among the
population age 65 and older, has decreased considerably. In 2000, only
5 percent of seniors received public assistance, compared with 14
percent of seniors in 1962."

Download full text of this publication  here:
http://www.nga.org/cda/files/04DATABOOK.PDF


Does this help?

Bobbie7

---

Request for Question Clarification by pafalafa-ga on 13 Oct 2005 14:54 PDT

greenideas-ga,

I must agree with bobbie7's findings...the idea that 95% of the
over-65 crowd in the US are taking handouts just seems ludicrous on
its face.

If this is indeed the case, then what sort of information would you
need to make for a compelling answer to your question?

Perhaps bobbie7-ga has already found it!


pafalafa-ga

---

Request for Question Clarification by czh-ga on 13 Oct 2005 15:48 PDT

Hello greenideas-ga,

I wonder if the article you're referring to actually said that "95%
depend on government assistants" instead of "government benefits."
That might be possible since most seniors get Social Security
benefits.  These payments are not normally considered "government
assistance" since the payment is based on payroll deductions. Those
that don't qualify for SSA benefits will usually qualify for
Supplemental Security Income (SSI) benefits. SSI is an needs based
program for the aged and disabled so it might be called "government
assistance." Many seniors also qualify for Medicare and state medical
insurance programs.

Please clarify what you mean by "depend on government assistants." Thanks.

~ czh ~

---

Clarification of Question by greenideas-ga on 14 Oct 2005 04:11 PDT

bobbie-7 that info was helpful and along with czh-ga 's comments has
helped me clarify what I'm getting at...

It would be more appropriate for me to say how many people are on
gov't benefits of any type.

I know 90% are on social security... and I know social security is
designed to only cover 40% of the receipents previous income.

I'm giving a speech and I want to make the argument (if it is true)
that 95% of people age 65 and above don't have enough money to live on
without depending on government benefits and family (read: not
financially independent).  And in my speech, I want to make the
argument that they need to work on establishing financial independence
otherwise they won't have enough money to live on (or to live in a way
they're accustom to).

Maybe another tack is to figure out what % of 65 years old make enough
to live on.  Not sure how that would be defined, but maybe compare the
income of 65 year olds to the US average or something.

---

Request for Question Clarification by bobbie7-ga on 14 Oct 2005 07:54 PDT

Hello again Greenideas,

Would any of the material below be useful for your speech?


?The median income of older persons in 2002 was $19,436 for males and
$11,406 for females.

$14,251 median for 33.3 million persons 65+ reporting income

For all older persons reporting income in 2002 (33.3 million), 31.5%
reported less than $10,000. Only 24.7% reported $25,000 or more. The
median income reported was $14,251.

The major sources of income as reported by the Social Security
Administration for older persons in 2001 were Social Security
(reported by 91% of older persons), income from assets (reported by
58%), public and private pensions (reported by 40%), earnings
(reported by 22%), public assistance (reported by 5%) and veterans?
benefits (reported by 4%). In 2000, Social Security benefits accounted
for 38% of the aggregate income of the older population. The bulk of
the remainder consisted of earnings (23%), assets (18%), and pensions
(17%).
http://www.aoa.gov/prof/Statistics/profile/2003/9.asp



Real median earnings of men age 15 and older who worked full-time,
year-round declined 2.3 percent between 2003 and 2004, to $40,798.
http://www.census.gov/Press-Release/www/releases/archives/income_wealth/005647.html



Median income, by age, 2002
Age      Dollars
65?69    26,796
70?74    20,734
75?79    17,959
80+      15,098

?Social Security provides at least half of total income for a majority
of beneficiaries. Social Security pays benefits to 90% of those aged
65 or older. It is the major source of income (providing 50% or more
of total income) for 66% of the beneficiaries. It contributes 90% or
more of income for one-third of the beneficiaries and is the only
source of income for 22% of them.?

?The aged are an economically diverse group. The median income for all
aged units is $18,938, but there are wide differences within the total
group. Twenty-one percent have an income of under $10,000, and 15%
have an income of $50,000 or more.?

See graph on page 34: ?The oldest age group has the highest poverty
rate. In keeping with the lower median income of older age groups,
those groups generally have higher rates of poverty 2nd near poverty
(income between the poverty line and 125% of the poverty line).?
Download here:
http://www.ssa.gov/policy/docs/chartbooks/income_aged/2002/iac02.pdf


?In 2000, the older population (persons 65 years or older) numbered 35
million, a 12 percent increase since 1990.

By the year 2030, the older population will more than double to about 70 million.

Almost 1 out of every 10 elderly Americans lives in poverty.

About 3.4 million older persons lived below the poverty level in 2000.

Although the poverty rate for persons 65+ continued at a historically
low rate of 10.2 percent, 2.2 million (or 6.7%) older persons were
classified as "near poor" (income between poverty level and 125
percent of this level).

The median income of older persons in 2000 was $19,168 for males and
$10,899 for females.?
http://www.usccb.org/sdwp/placeatthetable/uspoverty.htm

---

Clarification of Question by greenideas-ga on 16 Oct 2005 22:03 PDT

Hi bobbie7-ga that works for me.  What do I do next?

Greenideas,

I'm pleased the material provided is helpful.

You don't have to do anything. I am reposting my findings in the
answer box to make my answer official and that way I receive the fee
automatically.

Thank you

Sincerely, 
Bobbie7


=====================================================


?The median income of older persons in 2002 was $19,436 for males and
$11,406 for females.

$14,251 median for 33.3 million persons 65+ reporting income

For all older persons reporting income in 2002 (33.3 million), 31.5%
reported less than $10,000. Only 24.7% reported $25,000 or more. The
median income reported was $14,251.

The major sources of income as reported by the Social Security
Administration for older persons in 2001 were Social Security
(reported by 91% of older persons), income from assets (reported by
58%), public and private pensions (reported by 40%), earnings
(reported by 22%), public assistance (reported by 5%) and veterans?
benefits (reported by 4%). In 2000, Social Security benefits accounted
for 38% of the aggregate income of the older population. The bulk of
the remainder consisted of earnings (23%), assets (18%), and pensions
(17%).
http://www.aoa.gov/prof/Statistics/profile/2003/9.asp



Real median earnings of men age 15 and older who worked full-time,
year-round declined 2.3 percent between 2003 and 2004, to $40,798.
http://www.census.gov/Press-Release/www/releases/archives/income_wealth/005647.html



Median income, by age, 2002
Age      Dollars
65?69    26,796
70?74    20,734
75?79    17,959
80+      15,098

?Social Security provides at least half of total income for a majority
of beneficiaries. Social Security pays benefits to 90% of those aged
65 or older. It is the major source of income (providing 50% or more
of total income) for 66% of the beneficiaries. It contributes 90% or
more of income for one-third of the beneficiaries and is the only
source of income for 22% of them.?

?The aged are an economically diverse group. The median income for all
aged units is $18,938, but there are wide differences within the total
group. Twenty-one percent have an income of under $10,000, and 15%
have an income of $50,000 or more.?

See graph on page 34: ?The oldest age group has the highest poverty
rate. In keeping with the lower median income of older age groups,
those groups generally have higher rates of poverty 2nd near poverty
(income between the poverty line and 125% of the poverty line).?
Download here:
http://www.ssa.gov/policy/docs/chartbooks/income_aged/2002/iac02.pdf


?In 2000, the older population (persons 65 years or older) numbered 35
million, a 12 percent increase since 1990.

By the year 2030, the older population will more than double to about 70 million.

Almost 1 out of every 10 elderly Americans lives in poverty.

About 3.4 million older persons lived below the poverty level in 2000.

Although the poverty rate for persons 65+ continued at a historically
low rate of 10.2 percent, 2.2 million (or 6.7%) older persons were
classified as "near poor" (income between poverty level and 125
percent of this level).

The median income of older persons in 2000 was $19,168 for males and
$10,899 for females.?
http://www.usccb.org/sdwp/placeatthetable/uspoverty.htm

Great to work with.  Asked clarifying questions to figure out what I
was trying to get at, and got me what I needed.