2003

April: Income and Poverty Among the Elderly

The median income of older persons in 2001 was $19,688 for males and $11,313 for females -- $14,152 for all older people. Real median income of older people (after adjusting for inflation) fell by -2.6% from 2000 to 2001. For all older persons reporting income in 2001 (32.9 million), 31.8% reported less than $10,000.

Only 31.2% reported $25,000 or more. Households containing families headed by persons 65+ reported a median income in 2001 of $33,938 ($34,661 for Whites, $26,610 for African-Americans, and $24,287 for Hispanics). About one of every nine (10.7%) family households with an elderly householder had incomes less than $15,000 and 48.1% had incomes of $35,000 or more (Figure 7).

The major sources of income as reported by the Social Security Administration for older persons in 2000 were Social Security (reported by 90% of older persons), income from assets (reported by 59%), public and private pensions (reported by 41%), and earnings (reported by 22%). 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 (18%).

About 3.4 million elderly persons (10.1%) were below the poverty level in 2001. This poverty rate was not statistically different from the historic low reached in 1999. Another 2.2 million or 6.5% of the elderly were classified as "near-poor" (income between the poverty level and 125% of this level).

One of every twelve (8.9%) elderly Whites was poor in 2001, compared to 21.9% of elderly African-Americans and 21.8% of elderly Hispanics. Higher than average poverty rates for older persons were found among those who lived in central cities (12.8%), outside metropolitan areas (i.e. rural areas) (12.2%), and in the South (12.4%).

Older women had a higher poverty rate (12.4%) than older men (7.0%) in 2000. Older persons living alone or with non relatives were much more likely to be poor (19.7%) than were older persons living with families (5.5%). The highest poverty rates (50.5%) were experienced by older Hispanic women who lived alone or with non relatives.

Percent Distribution by Income: 2001*

(Based on data from the Census Bureau and the Social Security Administration).