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Identifying the poorest older Americans.
Jonathan D Fisher1, David S Johnson, Joseph T Marchand
1Litigation Analytics Inc., New York, NY 10017, USA. jfisher@litigationanalytics.com
Summary
Defining poverty in older adults requires looking beyond income alone. Combining income and consumption reveals the truly worst-off individuals, crucial for effective public policy.
Area of Science:
- Gerontology
- Economics
- Public Policy
Background:
- Public policies often target the 'poor' or 'needy,' but these categories are not uniform, especially for older adults.
- Existing poverty metrics may not fully capture the financial vulnerability of the elderly population.
Purpose of the Study:
- To identify the most financially disadvantaged individuals among older adults.
- To refine the understanding of poverty by considering both income and consumption.
Main Methods:
- Utilized 20 years of data from the Consumer Expenditure Survey.
- Analyzed income and consumption patterns of older Americans.
Main Results:
- Defining poverty by both income and consumption reduces the poverty rate by 75%.
- Individuals classified as poor by income alone but not by combined measures are often married, White homeowners with higher education.
- Income-poor individuals have assets to support consumption, while consumption-poor individuals have low assets despite adequate income.
Conclusions:
- The most impoverished older adults are those experiencing both income and consumption poverty.
- Understanding this 'double poverty' group is essential for evaluating and improving anti-poverty policies for seniors.
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