Elderly Income

Income usually declines in households as the number of people in the household who are able to work declines (Joint Center for Housing Studies of Harvard University, 2014). When individuals reach their 60s, the drop in income becomes steeper and many older adults have lost their partner and spouse by the time they reach their 80s (Joint Center for Housing Studies of Harvard University, 2014). This means that their pensions and social security benefits may be reduced as well (Joint Center for Housing Studies of Harvard University, 2014).

Although it is usual to leave the workforce by the age of 65, it has become more common for older households to remain employed (Joint Center for Housing Studies of Harvard University, 2014). In 2013, 31 percent of households aged 65-69 were employed which is a 9 percent increase from 1993 (Joint Center for Housing Studies of Harvard University, 2014). The percentage of households ages 70 and up has also increased significantly as well (Joint Center for Housing Studies of Harvard University, 2014).

Although there has been an increase in employment among older households, it is still very clear that the income of a household declines with age (Joint Center for Housing Studies of Harvard University, 2014). The median income for households aged 55-59 was more than $5,000 lower than the income of households aged 45-59 (Joint Center for Housing Studies of Harvard University, 2014). The difference rises to $15,000 when comparing households in their late 60s and those in their late 50s (Joint Center for Housing Studies of Harvard University, 2014). Households aged 80 and over on average have an income of only $25,000 and close to 25 percent live on less than $15,000 a year (Joint Center for Housing Studies of Harvard University, 2014). Although income varies among cultural demographics, most households aged 80 and over face financial problems (Joint Center for Housing Studies of Harvard University, 2014).

As households grow older, their income begins to dwindle. It is difficult to keep up with financial burdens with a small income and although evidence shows that people are remaining in the workforce until later in life, it is still clear that that older households earn less on average than their younger counterparts. Here at T’s 4 Hope, we would like to bring attention to this issue and related issues as well to create discussion about what can be done to help those that need it most. We accept donations and volunteer work as well. If you are interested, please contact us at Ts4Hope@yahoo.com or 954-867-6765.

Reference:

Joint Center for Housing Studies of Harvard University, 2014.