Strategies for Elder Economic Security ™
Key to strategies for elder economic security is an appropriate measure of income adequacy. Current data collection by the U.S. government relies on the federal poverty threshold, which is updated annual by the U.S. Census Bureau. The federal poverty threshold was originally developed as a measure of “income inadequacy” in 1964 by Mollie Orshansky of the U.S. Social Security Administration. At the time, Orshansky based her poverty thresholds on a multiple of the economy food plan — the cheapest of four food plans developed by the U.S. Department of Agriculture. In 2004, an individual 65 years or older with an income of $9,060 or couples 65 years or older with an income of $11,418 were at 100 percent of the poverty threshold.
The Elder Economic Security Standard (Elder Standard) is a much more precise and up-to-date measure of seniors’ income adequacy and economic well-being. The Elder Standard provides a complete picture of what it takes for an individual 65 years or older to age in place with dignity. The Elder Standard uses cost data from federal and state sources to assemble a realistic household budget, which includes expenses such as housing, transportation, food, and health care. The Elder Standard will show that household expenses can vary significantly due to variables such as health status, geographic location, housing status, and marital status. The Elder Standard addresses these variables through different “tracks” of elder households, including homeowners and renters, variations in health status, single and double occupancy households, and long-term care need indexing. The national Elder Standard prototype and methodology will be used to calculate state and county level Elder Standards using state and county data.
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