More and more Americans are falling into poverty in their later years.
According to Yahoo Finance, the latest poverty report released by the U.S. Census Bureau shows that although the overall poverty rate among American families decreased last year, the situation for the elderly is quite the opposite.
According to analysis by the AARP Foundation, the poverty rate among Americans aged 65 and above has been rising for five consecutive years. Since 2019, the rate has increased by approximately 45%, making it the highest among all age groups.
This means that currently over 10 million elderly Americans live in poverty, compared to only 5.1 million seven years ago.
"There has been no other age group exhibiting the same trend, this should be of high alarm to us, and is cause for concern."
According to data from the American Association of Retired Persons Foundation, only one out of four elderly people with low incomes participate in retirement savings programs, and most of them have very little income and are unable to save money.
Recent research shows that nearly half of Americans have retirement savings of less than $100,000 (about 670,130 yuan); nearly 20% of them have no retirement savings at all.
American financial media Investopedia pointed out in its data analysis of the Federal Reserve that approximately 11.6 million households in the United States with a head of age 65 or older do not have retirement accounts or pensions, accounting for nearly 30% of the total number.
Factors that hinder savings include: medical expenses, inflation, long-term care costs, wages not keeping up with spending increases, and personal debt.
This has left many senior citizens solely reliant on social security funds to make ends meet.
According to data from the U.S. Social Security Administration, a low-income worker who retires at age 65 receives a welfare benefit of just slightly over $15,000 per year, which is below the U.S. federal poverty line.
Casey remarked, "Some people work hard for a lifetime, following all the rules and regulations, but still end up in poverty when they get old."
The report mentioned that population census data is delayed and cannot reflect the current situation. High inflation and rising oil prices have further exacerbated the living difficulties of elderly people.
According to a survey by the American Association of Retired Persons, one-third of low-income elderly individuals cannot afford $100 in emergency funds, and this proportion continues to rise from 28% in spring. More than half of them are unable to cover sudden expenses of up to $500.
The financial pressure is most pronounced among the low-income group aged 50 to 64. They can only work as much as possible to maintain a balance in their income and expenses.
In the low-income elderly population who have jobs, nearly two-thirds of them have at least one paid part-time job in addition to their main job.
Tessa Girarducci, labor economist at New York Institute of Technology University, said: 'The rise in the elderly poverty rate is not unexpected. More and more elderly people have no traditional pensions. Their 401(k) accounts, intended as retirement savings plans, are either empty or have very little balance, which is just a drop in the bucket. This retirement crisis has been gradually accumulated over decades.'
The report indicates that for individual renters in the United States, the poverty line is roughly set at an annual income of $19,000 (about 127,600 yuan).
Kathy said, “Just imagine what it would be like to rely on this money to pay for rent, food, utilities, and medical expenses.”
She pointed out that last year, the poverty rate among women aged 50 and above was higher than that of men of the same age; the poverty rate for women aged 65 and above was nearly 17%, a figure that is “quite astonishing and worthy of everyone’s attention”.
This issue was planted during the professional career stage. Dan Dunne, executive director of the Retirement Security Institute in the United States, said: "Women often have lower incomes throughout their lives, with fewer opportunities for savings. By the time they retire, they are already in a disadvantaged position. Elderly poverty is the result of a accumulation of multiple risks, not due to personal decision-making mistakes."
In fact, signs of poverty start to appear well before the age of 65.
Kathy said that in the United States, more than 7 million people aged 50 to 60 are living in poverty. “Many people think that the 50s is the peak of income and the pinnacle of career success. But census data shows that for those aged 50 to 64 who are approaching traditional retirement age, the statistics reveal a completely different reality.”
Du Nan added that a sudden event could trigger a chain of ongoing difficulties for many years.
Market downturn, having illnesses, or taking care of others can deplete savings. However, women typically live longer and often rely on the meager funds remaining to sustain their life for years. He said.
