For other versions of this document, see http://wikileaks.org/wiki/CRS-RL33387 ------------------------------------------------------------------------------ ¢ Prepared for Members and Committees of Congress ¢ The aging of the American population and the retirement of the baby boom generation will place financial strains on Social Security, public and private pensions, and on retirees' personal savings. Since the 1960s, birth rates have fallen and average life expectancy has increased. Consequently, the number of workers relative to the number of retirees is projected to decline, and retirees will have to stretch their savings and other assets over longer periods of retirement than their parents and grandparents experienced. This CRS report presents data collected by the Census Bureau from 1969 through 2005 that describe how the demographic traits, employment patterns, and the sources and amounts of income of people 65 and older have changed over a period of nearly 40 years. America's elderly today are older, more racially and ethnically diverse, better educated, and less likely to be widowed than the elderly population of the late 1960s. The increasing number of Americans living to age 80 and older is of particular significance because it is the very old who are most likely to need medical, social, and long-term care services, and who are at the greatest risk of depleting their financial resources and slipping into poverty. Rates of employment among older persons have been rising in recent years. Employment rates fell among men 55 and older from the late 1960s to the early 1990s. Since then, employment rates have risen for older men, but they remain below the employment rates of the 1970s. Among older women, employment rates have steadily increased, but older women's employment rates today remain lower than those of men the same age. Earnings, Social Security, pensions, and income from assets comprise the majority of income among people 65 and older today, just as they did 35 years ago. Wages and salaries today constitute a greater proportion of the aggregate income of the elderly than at any time since the late 1970s. Since the early 1990s, both the share of aggregate income received from assets and the percentage of older persons with asset income have fallen. Social Security has remained a fairly stable share (about 40%) of the total income of people 65 and older. The percentage of men receiving pension income rose until the early 1990s and then fell. More women today have pension income, but their average pension is half the amount that men receive. Median household income rose faster among elderly households than among nonelderly households from 1969 through 2004, but in 2004 the median annual income of households in which the householder or spouse was 65 or older ($25,210) was just half of the median income of younger households ($50,466). The rise in the income of elderly households coincided with a decline in the poverty rate among people 65 and older from 25% in 1969 to just 10% in 2004. Also since the 1960s, the rate of decline in median personal and household income that occurs as people pass age 60 and begin to retire has slowed. Growth in real wages--and in the Social Security and pensions based on these wages--has contributed greatly to the economic well-being of today's retirees. Background: America's Aging Population ...................................................................................... 1 Americans Are Living Longer than Ever Before ...................................................................... 1 The Income of Older Americans and the Federal Budget ......................................................... 2 Trends in the Income of Older Americans ................................................................................ 3 The Data.................................................................................................................................... 4 Demographic Profile of the CPS Population Age 65 and Older...................................................... 5 Age ............................................................................................................................................ 5 Sex............................................................................................................................................. 6 Race and Ethnicity .................................................................................................................... 6 Marital Status ............................................................................................................................ 7 Education .................................................................................................................................. 8 Employment Among People Age 65 and Older............................................................................... 8 Rates of Employment, by Age .................................................................................................. 9 Employment Rates among Men and Women .......................................................................... 10 Full-Time vs. Part-Time Employment among Older Workers ................................................ 14 Sources and Amounts of Income Among People 65 and Older..................................................... 14 Earnings .................................................................................................................................. 15 Social Security ........................................................................................................................ 16 Asset Income........................................................................................................................... 16 Pension Income ....................................................................................................................... 18 Welfare Income ....................................................................................................................... 19 Other Income........................................................................................................................... 20 Sources of Income, by Quartile............................................................................................... 20 Sources of Income Differ Between Men and Women............................................................. 23 Household Income of People 65 and Older................................................................................... 25 Median Household Income, by Age........................................................................................ 26 Household Income at the 75th and 25th Percentiles.................................................................. 28 Poverty Status of the Elderly......................................................................................................... 29 Decline in Poverty Among the Elderly ................................................................................... 29 Poverty among Demographic Groups ..................................................................................... 31 Changes in Income as People Age................................................................................................. 32 Changes in Individual and Household Income ....................................................................... 33 Conclusion..................................................................................................................................... 36 Figure 1. Number of Older Americans, 1969-2005, by Age Group ................................................ 2 Figure 2. Employment Rates of Men by Age, 1969-2005............................................................. 12 Figure 3. Employment Rates of Women by Age, 1969-2005........................................................ 13 Figure 4. Share of Income by Source among People 65+, 1969-2004.......................................... 18 Figure 5. Sources of Income by Quartile, 1975............................................................................. 21 Figure 6. Sources of Income by Quartile, 2004............................................................................. 22 Figure 7. Percentage of Men and Women Age 65+ with Income from Each Source, by Year ............................................................................................................................................ 24 Table 1. Projections of the Resident U.S. Population, by Age ........................................................ 2 Table 2. Age Distribution of People Age 65 and Older, 1970-2005 ................................................ 6 Table 3. Race and Sex of Individuals Age 65 and Older, 1970-2005.............................................. 7 Table 4. Marital Status of Men and Women Age 65 and Older, 1970-2005.................................... 7 Table 5. Educational Attainment of Individuals Age 65 and Older, 1970-2005.............................. 8 Table 6. Employment Rates, by Age, 1969 to 2004 ...................................................................... 10 Table 7. Employment Rates Among Men and Women, by Age .....................................................11 Table 8. Full-Time and Part-Time Employment, by Age of Worker ............................................. 14 Table 9. Percentage of People Age 65 and Older with Income from Each Source ....................... 17 Table 10. Income from Each Source as a Percentage of Total Income Among People 65 and Older .................................................................................................................................... 17 Table 11. Mean Annual Income of People 65 and Older from Each Source ................................. 17 Table 12. Median Annual Income of Individuals 65 and Older from Each Source....................... 18 Table 13. Median Income of Men and Women Age 65 and Older from Each Source .................. 25 Table 14. Average Household Size by Year and Age of Householder ........................................... 26 Table 15. Mean and Median Household Income, by Age of Householder.................................... 26 Table 16. Percentage Change in Median Household Income, 1969 to 2004, by Age of Householder ............................................................................................................................... 27 Table 17. Household Income at 75th and 25th Percentiles, by Age of Householder....................... 28 Table 18. Cumulative Percentage Change in Household Income at 75th and 25th Percentiles, by Age of Householder ........................................................................................... 29 Table 19. Poverty Status of Individuals Age 18 and Older, by Year.............................................. 30 Table 20. Poverty Status of Individuals Age 18 and Older in 2004, by Demographic Characteristics ............................................................................................................................ 31 Table 21. Median Individual Income at Five-Year Intervals ......................................................... 35 Table 22. Median Household Income at Five-Year Intervals ........................................................ 36 Table A-1. Percentage of People Age 65 and Older with Income from Each Source, by Year ............................................................................................................................................ 39 Table A-2. Median Annual Income of Individuals Age 65 and Older, by Income Source ............ 40 Table A-3. Mean and Median Annual Household Income in 2004 Dollars................................... 41 ¡ Appendix. Historical Tables of Individual and Household Income............................................... 38 Author Contact Information .......................................................................................................... 44 The average life expectancy of Americans born in 1969 was 70.5 years. It has been estimated that those who were born in 2003 will live for an average of 77.5 years.1 Women continue to have a longer average life expectancy than men, but both men and women have experienced gains in average life expectancy since the 1960s. A man who reached age 65 in 1969 could expect to live another 13.0 years, whereas a woman who turned 65 in 1969 had a remaining life expectancy of 16.5 years. A man who reached age 65 in 2003 could expect to live another 16.8 years, whereas a woman who turned 65 in 2003 had a remaining life expectancy of 19.8 years. As more people live into old age, the age-profile of the population will shift. In 1969, 18.6 million people in the United States--9.4% of the population--were age 65 or older. In 2005, there were 36.7 million Americans age 65 or older, representing 12.4% of the population. (See Figure 1.) By 2025, according to projections made by the Bureau of the Census, there will be 63.5 million people age 65 or older, comprising 18.2% of the U.S. population. (See Table 1.) These demographic trends will strain the components of the traditional "three-legged stool" of retirement income: Social Security, pensions, and personal saving. The Social Security Board of Trustees has estimated that the Social Security trust fund will be exhausted by 2041 unless actions are taken to preserve it.2 Pensions are the second largest source of income among the elderly, after Social Security, but only about half of all workers in the United States have pension coverage through their jobs. Moreover, the traditional pension that provides a lifelong annuity is becoming less common. Today, more workers participate in savings and thrift plans than in traditional pension plans. A key characteristic of these savings plans is that the worker must actively participate, deciding whether to contribute to the plan, how much to contribute, and how to invest the funds. Workers who do not choose to save, or who save too little, may face difficult financial circumstances in retirement. 1 U.S. National Center for Health Statistics, Vital Statistics of the United States. 2 Social Security and Medicare Boards of Trustees, Status of the Social Security and Medicare Programs: A Summary of the 2005 Annual Reports, March 2005. much of the income of older Americans is provided through government-sponsored income because they represent a large and growing proportion of the U.S. population, but also because Congress has an interest in the sources and amounts of income among older Americans, not only ./jorpmiretnisu/www/cpi/vog.susnec.www//:ptth uaeruB susneC .S.U :ecruoS %7.02 %4.02 %3.02 %2.81 %5.41 %4.21 latoT fo % 607,68 959,28 146,67 425,36 197,64 596,63 redlo dna 56 458,914 268,504 588,773 834,943 763,223 605,592 latoT 696,33 749,13 448,32 865,51 224,21 696,01 pu dna 08 665,23 381,23 411,43 903,82 847,81 678,51 97 ot 07 444,02 928,81 386,81 746,91 126,51 321,01 96 ot 56 100,422 955,712 250,302 888,391 863,091 938,671 46 ot 02 741,901 443,501 291,89 620,29 802,58 279,18 02 rednU 0502 5402 5302 5202 5102 5002 egA )raey h cae 1 yluJ fo sa ,sdnasuoht ni( egA yb ,noitalupoP .S.U tnediseR eht fo snoitcejorP . 1 elbaT .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS )sdnasuoht ni( puorG egA yb ,5002-9691 ,snaciremA redlO fo rebmuN . 1 erugiF transfers, or is subsidized through income tax deductions and exemptions. In FY2006, for example, federal expenditures for Social Security will exceed $550 billion, representing more than 20% of total federal spending and nearly 38% of federal spending on entitlement programs.3 The federal government also provides income directly to low-income older Americans through the Supplemental Security Income (SSI) program and to retired federal employees through the Civil Service Retirement System and the Federal Employees' Retirement System. Of the estimated $35.3 billion federal expenditure for SSI benefits in FY2006, approximately one-sixth, or $5.9 billion, will be paid to recipients who are 65 or older.4 Federal outlays for retirement and disability pensions for former federal employees will exceed $58 billion in FY2006, with most of this amount being paid to individuals age 55 and older. The public also subsidizes the income of older Americans through several exemptions and deductions that Congress has included in the Internal Revenue Code. These tax incentives promote sponsorship of pension plans by employers and encourage workers to save for retirement. The tax deductions and deferrals granted to qualified retirement plans are the second largest tax expenditure in the federal budget, and will reduce federal tax revenues by an estimated $103.3 billion in FY2006.5 Congress also allows taxpayers who are 65 or older to claim an additional standard deduction on their income tax returns, which will reduce federal tax revenues by an estimated $1.7 billion in FY2006. Developing public policies that will promote income security among older Americans while also meeting other important fiscal priorities will pose many challenges for Congress. Congress has already begun to consider policy options to meet these challenges. Social Security, pensions, and retirement savings will continue to occupy the attention of Congress as the baby boom generation retires, and more households begin to rely on Social Security, pensions, and savings to provide the majority of their income. As policymakers consider proposals that would affect the main income sources of older Americans, it may be helpful for them to know how the amounts and sources of income of people who have reached retirement age have changed over time. This CRS report presents data collected by the Census Bureau from 1969 through 2005 that describe how the demographic traits, employment patterns, and the sources, amounts, and distribution of income among people 65 and older have changed over a period of nearly 40 years. The report begins with a demographic profile of older Americans, which describes the population 65 and older in terms of age, race, sex, educational attainment, and marital status and how these demographic traits have changed since the late 1960s. This is followed by a section that focuses on trends in employment among people 65 and older, including differences in rates of employment among men and women. The third section of the report provides detailed information on the sources and amounts of income received by people 65 and older, and how the proportion of total income from each 3 Budget of the United States Government, Fiscal Year 2007: Analytical Perspectives, p. 360. Not all Social Security spending is for persons 65 and older. Data collected by the Census Bureau indicate that about 76% of Social Security recipients in 2004 were 65 or older and these individuals received 78% of Social Security benefits paid that year. 4 Budget of the United States Government, Fiscal Year 2007, and Census Bureau data. 5 Budget of the United States Government, Fiscal Year 2007: Analytical Perspectives, p. 289. The largest tax expenditure is the exclusion for employer contributions for employee health insurance, which will reduce federal tax revenues by an estimated $118.4 billion in FY2006. source has changed over time. The fourth section examines trends in the distribution of income among households, and compares the distribution of income among the households of older Americans with the income distribution of income among the households of people under 65 years old. This is followed by a section that describes the decline in the proportion of older Americans living in poverty since the 1960s. The final section of the paper explains how individual and household incomes fall as people age and gradually reduce their attachment to the paid labor force. All of the data presented in this report were collected by the Census Bureau through the Current Population Survey (CPS), a survey of the civilian, noninstitutional population of the United States. The CPS was begun in the 1940s as a way to measure unemployment each month on the basis of a random sample of U.S. households. It is still the source of the official rate of unemployment reported each month by the Bureau of Labor Statistics. The CPS also is used to collect annual income data. Each year, in March, the survey includes a detailed set of questions on the amounts and sources of income people received during the previous calendar year. Over the years, the number of income questions has expanded, and today information is gathered on more than 50 different sources of income, and noncash benefits such as food stamps, employer- provided pension plans, employer-sponsored health insurance plans, Medicaid, Medicare, and home energy assistance. The survey also collects detailed information on the employment status, work experience, occupation, and industry of employment of people 15 years old and over. The number of households surveyed has increased over the years. In March 1969, the earliest survey CRS analyzed for this report, the CPS sample included 47,000 households and contained records for 152,000 individuals. In March 2005, the most recent survey studied for this report, the CPS sample included 100,000 households and contained records for 216,000 individuals. seitilicaF eraC mret-gnoL dna semoH gnisruN ni redlO dna 56 elpoeP yevruS noitalupoP tnerruC eht hguorht uaeruB susneC eht yb detcelloc erew troper siht ni detneserp atad ehT ton seod tI .setatS detinU eht fo noitalupop dezilanoitutitsninon ,nailivic eht gnoma detcudnoc si SPC ehT .)SPC( noillim 27.1 detamitse na ,0002 nI .esab no gnivil lennosrep yratilim ro ,semoh gnisrun ,snosirp fo stnediser edulcni eht fo %5.4 gnisirpmoc ,redlo ro 56 ega erew )%19( noillim 65.1 ,rebmun siht fO .semoh gnisrun ni dediser snosrep redlo morf yllacihpargomed reffid semoh gnisrun fo stnediser ylredlE .redlo ro 56 ega snosrep fo rebmun latot ot ylekil ssel era dna ,elamef eb ot ylekil erom ,redlo era stnediser emoh gnisruN .ytinummoc eht ni evil ohw snosrep ot 56 erew %25 ,ytinummoc eht ni gnivil redlo dna 56 elpoep gnoma ,5002 nI .stnediser ytinummoc naht deirram eb emoh gnisrun gnoma noitubirtsid ega ehT .redlo ro 58 erew %11 dna dlo sraey 48 ot 57 erew %73 ,dlo sraey 47 ,dlo sraey 47 ot 56 erew %51 :noitalupop ytinummoc eht fo egami rorrim a saw 5002 ni redlo dna 56 ega stnediser ,5002 ni ytinummoc eht ni gnivil redlo dna 56 elpoep gnomA .redlo ro 58 erew %84 dna ,dlo sraey 48 ot 57 erew %73 stnediser ytinummoc gnomA .nemow erew %47 ,redlo dna 56 ega stnediser emoh gnisrun gnomA .nemow erew %75 redniamer ehT .deirram erew %02 tsuj ,stnediser emoh gnisrun gnomA .deirram erew %55 ,5002 ni redlo dna 56 ega 6.deirram reven ro ,decrovid ,dewodiw erew The demographic traits of people 65 and older have changed over the past 35 years. Demographically, America's elderly today are older, more racially and ethnically diverse, better educated, and less likely to be widowed than the elderly population of the late 1960s and early 1970s. The increasing number of Americans living to age 80 and older is of particular importance to policymakers, because it is the very old who are most likely to need medical, social, and long- term care services, and who are at the greatest risk of depleting their financial resources and slipping into poverty. The American population is not only growing larger, it is getting older. During the past 35 years, the total U.S. population increased by 47%, rising from 198 million in 1970 to 291 million in 2005. Also during that period, the number of Americans age 65 and older has nearly doubled, growing from slightly less than 19 million to more than 35 million. (See Table 2.) The proportion of the population who are 65 or older is projected to continue rising. In 1970, 9% of the population were age 65 and older, and by 2005 the share had risen to 12%. The Census Bureau projects that by 2035, 20% of the U.S. population will be age 65 and older.7 As the proportion of the total population age 65 and older has increased, the age distribution among older persons also has changed. Compared to 35 years ago, a greater share of the elderly today are age 80 or older. In 1970, 36% of Americans age 65 or older were 65 to 69 years old, 47% were 70 to 79 years old, and just 17% were 80 or older. In contrast, by 2005, the proportion 6 The demographic characteristics of nursing home residents presented here were taken from the Minimum Data Set Resident Reports prepared by the Centers for Medicare and Medicaid Services, U.S. Department of Health and Human Services. These data are a representative sample of 1.4 million residents of Medicare- and Medicaid-certified long-tem care facilities. 7 U.S. Census Bureau, "U.S. Interim Projections by Age, Sex, Race, and Hispanic Origin," 2004 at http://www.census.gov/ipc/www/usinterimproj. of people age 65 or older who were 65 to 69 years of age had declined to 29% and the proportion who were age 80 or older had risen to 26%. (See Table 2.) .2 elbaT 5002-0791 ,redlO dna 56 egA elpoeP fo noitubirtsiD egA egatnecreP rebmuN 96-56 97-07 dna 08 latoT .S.U fo )sdnasuoht( redlo anoitalupop 0791 998,81 %7.53 %3.74 %0.71 %001 %4.9 0891 347,32 1.63 3.64 6.71 001 9.01 0991 665,92 3.43 1.64 6.91 001 0.21 0002 126,23 7.82 9.74 4.32 001 9.11 .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS .noitalupop .S.U latot fo egatnecrep a sa redlo dna 56 ega elpoeP .a ¡ The proportion of Americans age 65 and older who are male or female has remained relatively constant over the past 35 years. (See Table 3.) Roughly 43% of older Americans are men, whereas women comprise roughly 57%. The difference in the share of elderly by sex is primarily due to females having a longer life expectancy than their male counterparts.8 On average, a woman age 65 in 2002 could expect to live an additional 19.5 years (to age 84 and 6 months) and a man age 65 could expect to live an additional 16.6 years (to age 81 and 7 months).9 Although the population age 65-69 is roughly equally divided between men and women--with men comprising 48% and women comprising 52% in 2005--women's greater longevity results in a dramatic difference for older age groups. Nearly two-thirds (63% in 2005) of Americans age 80 and older are women. ¢ Reflecting changes in the general population, Americas's older population has become more racially and ethnically diverse over the past 35 years.10 Although they remain a majority, the share of Americans age 65 and older who report their race as white has declined. (See Table 3.) In 1970, 92% of those age 65 and older were white, whereas in 2005, the share had fallen to 87%. The share of older Americans who are black has risen slightly during the same period from 7% to 8%. The share of older individuals who the Census Bureau categorizes as other races--primarily persons of Asian and Native American heritage--has risen over the last 35 years from less than 1% to more than 4% of the population. Persons of Hispanic ethnicity may report themselves to be 8 For an explanation of the differences in life expectancy by sex, see CRS Report RL32792, Life Expectancy in the United States, by Laura B. Shrestha. 9 U.S. National Center for Health Statistics, Vital Statistics of the United States. 10 In 1970, 88% of the total U.S. population of all ages reported their race as white, 11% as black, and 1% as other. By 2005, the share reporting their race as white had fallen to 81% and the share reporting their race as black had risen to 13%; other rose to 7%. of any race.11 Between 1971 and 2001, the proportion of Americans age 65 and older who identified themselves as being of Hispanic ethnicity increased from 1.6% to 5.3%. 3 elbaT 5002-0791 ,redlO dna 56 egA slaudividnI fo xeS dna ecaR . elaM elameF etihW kcalB rehtO a 0791 %7.24 %3.75 %9.19 %3.7 %8.0 0891 2.14 8.85 3.09 5.8 2.1 0991 7.14 3.85 6.98 4.8 0.2 0002 6.24 4.75 5.88 4.8 0.3 5002 0.34 0.75 2.78 4.8 4.4 .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS .ecar yna fo eb yam yticinhte cinapsiH fo snosreP .naciremA evitaN dna naisA ylniaM .a In 2005, women age 65 and older were almost equally likely to be widowed as they were to be married. (See Table 4.) This a consequence of both women's longevity and the fact that many women marry older men. In 2005, roughly one-half of married women age 65 and older had husbands who were at least two years older. These factors help to explain how less than one-half (42%) of older women, but nearly three-quarters (72%) of older men were married in 2005. The marital composition of the elderly has changed over the last 35 years. The proportion of men and women who are divorced has more than tripled, and the share of men and women who are widowed has fallen. For both older men and women, the share who have never been married has fallen. In 1970, roughly 7% of persons age 65 and older had never been married; by 2005 it was roughly 4%. 4 elba5002-0791 ,redlO dna 56 egA nemoW dna neM fo sutatS latiraM . T deirraM detarapeS decroviD dewodiW elgniS neM 0791 %0.17 %3.2 %3.2 %6.71 %8.6 0891 5.57 0.2 7.3 6.31 1.5 0991 3.47 3.2 0.5 2.41 2.4 0002 6.27 7.2 1.6 4.41 3.4 5002 7.17 2.3 1.7 7.31 4.4 nemoW 0791 %3.53 %3.1 %1.2 %1.45 %2.7 0891 1.83 7.1 4.3 0.15 9.5 11 For a discussion of the federal standards for presenting data on race and Hispanic origin, see CRS Report RL3270, The Changing Demographic Profile of the United States, by Laura Shrestha. deirraM detarapeS decroviD dewodiW elgniS 0991 7.93 7.1 1.5 6.84 9.4 0002 3.14 6.2 2.7 3.54 6.3 .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS America's older population is an increasingly well-educated group. In 1970, the vast majority (71%) of Americans age 65 and older had not graduated from high school and only 13% had either some college or were college graduates. (See Table 5.) By 2005, only a quarter of older Americans had not graduated from high school and 38% had either some college or were college graduates. The rise in the education level of the elderly reflects the increasing educational attainment in the total population as well as the positive correlation between education and life expectancy.12,13 5 elbaT 5002-0791 ,redlO dna 56 egA slaudividnI fo tnemniattA lanoitacudE . naht sseL loohcS hgiH emoS egelloC loohcS hgiH etaudarG egelloC etaudarG 0791 %4.17 %0.61 %2.6 %3.6 0891 4.95 0.42 1.8 5.8 0991 9.24 1.33 1.21 9.11 0002 0.92 3.73 0.81 6.51 5002 1.62 4.63 7.81 8.81 .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS ¢ Patterns of employment among older Americans have changed since the 1960s, and the trends in employment among older workers have differed between men and women. From the late 1960s to the early 1990s, employment rates fell steadily among men 55 and older. Since then, employment rates have risen for older men, but they remain below the employment rates that prevailed among men 55 and older as recently as the late 1970s. Among older women, the trend in employment since the late 1960s has been one of steady increase, as the larger numbers of women who entered the labor force in the 1960s and 1970s have begun to pass age 55. Despite this steady increase, however, older women's employment rates today remain lower than those of men the same age. Moreover, among both men and women employment rates continue to drop significantly after age 70. Consequently, earnings are likely to remain a fairly small contributor to the total income of people older than age 70. 12 Nicole Stoops, Educational Attainment in the United States, 2003, Population Characteristics, U.S. Census Bureau, Current Population Reports, P20-550. 13 CRS Report RL32792, Life Expectancy in the United States, by Laura B. Shrestha. Although the reasons for the increased employment among older individuals--particularly the upturn in employment among older men--cannot be determined with complete certainty, two factors often cited by economists are long-term developments in the design of employer- sponsored pensions and the decline in the proportion of retirees with access to employer- sponsored group health insurance. With respect to pensions, the trend for the past 25 years has been away from traditional defined-benefit pensions that pay a guaranteed annuity for life--and which often pay early-retirement subsidies to encourage workers to retire at 55--toward defined contribution plans, such as the 401(k). The typical 401(k) plan does not include any type of subsidy for early retirement, and some workers may have begun to delay retirement in order to retire with a larger account balance. In the area of health insurance, rapidly rising health care costs have discouraged employers from beginning or continuing to offer health insurance to retirees.14 In the absence of this coverage, more workers may choose to continue working until age 65, when they become eligible to enroll in Medicare. ¢ ¢ As people grow older, both the proportion of those who work and of those who work full-time decline. In 2004, 90% of men between the ages of 25 and 54 worked for pay at some time during the year.15 Among men age 55 to 64, 73% worked in 2004, and of men 65 and older only 23% were employed at some time during the year. Similarly, 77% of women between the ages of 25 and 54 were employed at some time in 2004; the employment rate among women 55 to 64 years old was 60%. Among women 65 or older, just 14% were employed at some time in 2004. Older workers also tend to work fewer hours than younger workers. Among all workers between the ages of 25 and 54, 87% worked full-time in calendar year 2004 and 13% worked part-time. Even among workers aged 55 to 59, 86% worked full-time in 2004. However, among those 60 to 64 years old, only 78% who worked in 2004 were employed full-time. Beginning at age 62, individuals are eligible for Social Security retired worker benefits, and this appears to have some effect on rates of full-time employment. Among people who were 60 or 61 years old and who worked in 2004, 82% were employed full-time. Among those who were 62 to 64 years old and who worked in 2004, just 74% worked full time. Rates of full time employment fall further after age 65. Of those 65 and older who were employed in 2004, only 51% worked full-time.16 The trend in employment rates among all persons 55 and older since the late 1960s is described by a slightly "U-shaped" curve. The employment rate among people 55 and older at first declined, reaching a low point in the mid- to late 1980s. During the past 10 to 15 years, employment rates among older persons have risen, and the rate of increase appears to have accelerated recently. In 1969, 70% of people 55 to 59 years old were employed at some time during the year, as were 60% of people 60 to 64 years of age, 35% of those aged 65 to 69, and 14 For more information, see CRS Report RL33361, Employer-Sponsored Retiree Health Insurance: An Endangered Benefit?, by Neela K. Ranade. 15 The statistics in this paragraph were derived from the March 2005 Current Population Survey. For more on labor force participation among people 55 and older see, CRS Report RL30629, Older Workers: Employment and Retirement Trends, by Patrick Purcell. 16 Although Social Security retired worked benefits are first available at age 62, beneficiaries who are under the full retirement age (65 years and 8 months for those who reach age 65 in 2006) are subject to an earnings test that reduces the monthly benefit if their earnings exceed a threshold amount. In 2006, Social Security beneficiaries who are under the full retirement age have their benefit reduced by $1 for every $2 of annual earnings over $12,480. 13% of those age 70 and older. (See Table 6.) By the late 1980s, employment rates for all four of these age groups had fallen, and for those age 60 or older employment rates had fallen substantially. In 1989, the employment rate among people 55 to 59 years old was 67%, just 3 percentage points lower than in 1969. Among those 60 to 64 years old, however, the employment rate in 1989 was 49%, or 11 percentage points lower than 20 years earlier. Likewise, among people ages 65 to 69, the employment rate of 25% in 1989 was 10 percentage points lower than it had been in 1969. Among people age 70 and older, the 1989 employment rate was more than four percentage points lower than it had been in 1969. Since the late 1980s, employment rates among older persons have risen, although among people 60 and older they remain lower than they were in the late 1960s. Among people 55 to 59 years old, 74% were employed at some time in 2004, an increase of 7 percentage points since 1989. The employment rate among individuals age 60 to 64 was 57% in 2004, an increase of 8 percentage points since 1989. The employment rate among those 65 to 69 years old also rose by 8 percentage points between 1989 and 2004, rising from 25% to 33%, whereas the employment rate among those age 70 and older rose from 9% to 12% during this time. 4002 ot 9691 ,egA yb ,setaR tnemyolpmE .6 elbaT )raey eht fo htnom yna ni emit-trap ro emit-lluf deyolpme snosrep( egA egA egA 07 egA 95-55 46-06 96-56 redlO dna 9691 %4.07 %5.95 %9.43 %3.31 4791 4.66 2.55 7.72 7.11 9791 5.86 2.45 4.82 2.11 4891 3.86 1.15 8.42 0.01 9891 4.76 5.84 8.42 5.8 4991 1.96 6.84 4.42 2.8 9991 3.07 7.25 0.72 0.01 4002 9.37 0.75 7.23 2.21 .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS ¢ Employment rates differ between men and women at every age, and the recent trends in employment rates among older Americans also differ between men and women. Although women have lower labor force participation rates than men, most of the increase in employment among older Americans since the mid-1980s has been the result of the increased labor force participation of women. Employment rates among older men have begun to rise over the past 15 years, but they remain substantially lower than the employment rates that prevailed among men up until about 1980. Employment rates among older women, in contrast, were higher in 2004 than at any point in the previous 35 years. In 1969, 91% of men between the ages of 55 and 59 were employed at some time during the year. (See Table 7.) The employment rate among men in this age group declined steadily over the next 30 years, falling to 78% by 1999. By 2004, the employment rate among 55 to 59 year-old men had risen to 80%, but this was still lower than the employment rate among men in this age group had been 20 years earlier in 1984. Similar patterns can be seen in the employment rates of men in the 60-64, 65-69, and 70 and older age categories. In each of these groups, employment rates among men fell from the late 1960s through the mid-1990s, and then rose a few percentage points. Employment rates among men in these age groups, while higher in 2004 than in 1999 or 1994 were still lower than they were 25 years earlier in 1979. 7 elbaT egA yb ,nemoW dna neM gnomA setaR tnemyolpmE . )raey eht fo htnom yna ni emit-trap ro emit-lluf deyolpme snosrep( egA egA egA 07 egA 95-55 46-06 96-56 redlo dna nemoW neM nemoW neM nemoW neM nemoW neM 9691 %7.09 %0.25 %3.08 %4.14 %2.05 %3.22 %3.12 %7.7 4791 8.38 5.05 8.37 0.93 2.93 5.81 7.91 5.6 9791 6.48 9.35 5.07 9.93 4.83 3.02 9.71 8.6 4891 8.18 8.55 2.46 0.04 9.23 3.81 1.51 7.6 9891 6.97 3.65 9.95 5.83 6.03 0.02 9.21 7.5 4991 4.87 7.06 0.65 8.14 1.03 6.91 4.21 4.5 9991 7.77 7.36 6.16 6.44 2.33 4.12 4.41 9.6 4002 1.08 2.86 5.46 3.05 1.73 7.82 7.61 0.9 .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS Employment rates among older women did not follow the U-shaped pattern of men's employment rates over the period from 1969 to 2004. From 1969 through the mid-1980s, employment rates among women age 55 to 59 generally rose, whereas employment rates among women 60 and older fell slightly. Since the late 1980s, employment rates among women 55 to 69 years old have continued to rise as the large numbers of women who entered the labor force in the 1960s and 1970s began to pass age 55. In 2004, for example, 68% of women aged 55 to 59 were employed, up from 56% in 1984. Employment rates also have risen among women 60 and older. Fifty percent of women 60 to 64 years old were working in 2004, compared with 40% in 1984, and 29% of women aged 65 to 69 were employed at some time in 2004, up from 18% 20 years earlier. Figures 2 and 3 show the percentage of men and women, respectively, who were employed in March each year from 1969 to 2005. .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS Year 20 20 20 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 05 03 01 99 97 95 93 91 89 87 85 83 81 79 77 75 73 71 69 0.0% 10.0% 20.0% 30.0% 70+ 40.0% 65-69 60-64 50.0% 55-59 60.0% Percent of Men Employed 70.0% 80.0% 90.0% 5002-9691 ,egA yb neM fo setaR tnemyolpmE . 2 erugiF .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS Year 20 20 20 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 05 03 01 99 97 95 93 91 89 87 85 83 81 79 77 75 73 71 69 0.0% 10.0% 20.0% 30.0% 70+ 40.0% 65-69 60-64 50.0% 55-59 60.0% 70.0% Percent of Women Employed 80.0% 90.0% 5002-9691 ,egA yb nemoW fo setaR tnemyolpmE .3 erugiF ¢ As noted above, individuals who continue to work past age 55 remain almost as likely to work full-time as their younger counterparts until about age 62, the first age of eligibility for Social Security retired worker benefits. For workers 55 to 59 years old, the distribution between full- time and part-time employment changed relatively little between 1969 and 2004, whereas for those age 60 to 64, the proportion of workers employed full-time fell from 86% in 1969 to 78% in 1989 and has remained near that level since then. Among workers 65 to 69 years old and those 70 and older, the percentage who work full-time fell between 1969 and 1979, but has since increased. (See Table 8.) rekroW fo egA yb ,tnemyolpmE emiT-traP dna emiT-lluF .8 elbaT 07 egA egA egA egA redlo dna 96-56 46-06 95-55 emit-traP emit-lluF emit-traP emit-lluF emit-traP emit-lluF emit-traP emit-lluF 9691 %1.98 %9.01 %7.58 %3.41 %2.56 %8.43 %2.54 %8.45 4791 6.88 4.11 9.58 1.41 4.75 6.24 2.34 8.65 9791 2.68 8.31 9.18 1.81 1.15 9.84 8.73 2.26 4891 1.48 9.51 0.97 0.12 5.15 5.84 2.43 8.56 9891 1.58 9.41 7.77 3.22 5.35 5.64 9.83 1.16 4991 5.48 5.51 2.67 8.32 6.35 4.64 2.04 8.95 9991 9.68 1.31 8.87 2.12 9.45 1.54 0.64 0.45 4002 2.68 8.31 2.87 8.12 0.95 0.14 2.24 8.75 .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS Older Americans receive income from a variety of sources such as earnings, Social Security, assets, pensions, and welfare.17 Four sources of income--earnings, Social Security, pensions, and income from assets--comprise the majority of income among people 65 and older today, just as they did 35 years ago. In 2004, these four income sources provided 97% of all income received by people 65 and older. This was a slight increase from 1975 (the first year for which separate data on pension income are available from the CPS) when these four sources provided 95% of income received by people 65 and older. Wages and salaries today constitute a greater proportion of the aggregate income of the elderly than at any time since the late 1970s, and while this is due in part to increasing rates of employment, it is also partly the result of a decline over the past 15 years in the proportion of 17 The CPS does not collect information on income received from capital gains. income received as interest and dividends. Since the early 1990s, interest rates and dividend yields have fallen, and both the share of aggregate income received from these sources and the percentage of older individuals with income from assets have fallen since that time. Social Security has for most of the past 35 years remained a fairly stable share (about 40%) of the income of people 65 and older. Trends in pension income have been more complex. Trends in the percentage of people receiving pension income have differed between men and women. The proportion of men 65 and older with pension income rose between 1980 and the early 1990s. By that time, almost half of men 65 and older received some pension income. Since about 1992, however, the proportion of men receiving pension income has fallen to about 44%. Although the percentage of women 65 and older with pension income has continued to rise-- although very slowly--women 65 and older are only half as likely as men to receive income from this source. Moreover, women's pension income is, on average, only half that of male pension recipients. The share of income the elderly receive from pensions has fallen since the early 1990s because the proportion of men with pension income has fallen and the rise in the proportion of women with pension income has been offset by the smaller amounts they typically receive. Because the proportion of the total workforce who participate in employer-sponsored pensions has remained stable at about half the workforce since the 1970s, it is unlikely that the share of total income of the elderly received from pensions will rise substantially in the next 10 to 20 years. Few individuals age 65 and older do not receive any income. Between 1969 and 2004, the percentage of people 65 and older receiving income from at least one source increased from 90% to 97%.18 Among people who had income from any source, the mean annual amount (in constant 2004 dollars) rose from $13,414 in 1969 to $23,762 in 2004, an increase of 77% or 1.6% per year. Median total income, also in constant 2004 dollars, rose from $8,196 in 1969 to $15,189 in 2004, an increase of 85% or 1.7% per year. (See Tables 9 through 12.)19 In 1969, a quarter of all people 65 and older worked, and earnings provided a third of the total income of the elderly. Both of these percentages declined sharply over the next decade, and by 1980, the proportion of people 65 and older with earned income had fallen to 17%, and earnings had fallen to 16% of the aggregate income of the elderly. The proportion of Americans age 65 and older with earnings has increased slightly in recent years, rising from 16% in the early 1990s to 18% in 2004. As a share of aggregate income, however, earnings have risen more substantially, growing from 15% of the total income of the elderly in the mid-1990s to 23% in 2004. (See Figure 4.) The increase in the proportion of income from earnings is the result mainly of four factors: (1) growth in real wages; (2) increased employment among people 65 and older; (3) an increase in the percentage of working elderly who are employed full-time; and (4) a drop in interest and dividend income that resulted from falling interest rates, falling dividend yields, and a 18 The majority of individuals without income were women. In 1969, 16% of women and 1% of men received no income. By 2004, the share of men who received no income had risen slightly (to 2%) and the share of women who received no income had fallen to 4%. 19 The median lies at the middle of the income distribution. Half of the population have higher incomes, and half have lower incomes. Mean income is generally higher than median income because a relatively small percentage of people have very high incomes. The median is therefore widely considered to be a more accurate measure of average income. decline in the percentage of people receiving interest and dividend income.20 Among people who had earned income, the mean total amount (in constant 2004 dollars) rose from $14,497 in 1969 to $29,459 in 2004, an increase of 103% or 2.0% per year. Median earned income, also in constant 2004 dollars, rose from $6,856 in 1969 to $15,000 in 2004, an increase of 119% or 2.2% per year. ¢ In 1969, 75% of people 65 and older received Social Security income, either as retired workers, as spouses, or as survivors of deceased workers. By 1991, the proportion of elderly receiving Social Security benefits had risen to 91%, and it has remained within two percentage points of 90% since that time. Social Security provided almost one-third of all income received by people 65 and older in 1969. By 1975, Social Security benefits accounted for 42% of the total income of people 65 and older. During the past 30 years, Social Security has consistently comprised between 38% and 43% of the aggregate income of the elderly population. Among people 65 and older who received Social Security income, the mean annual amount rose from $5,171 in 1969 to $10,681 in 2004, an increase of 107% or 2.0% per year. Median Social Security income rose from $4,866 in 1969 to $10,399 in 2004, an increase of 114% or 2.1% per year. (All amounts are in constant 2004 dollars.) Income from assets--primarily interest and dividends, but also including rents and royalties-- was received by 39% of people 65 and older in 1969. The proportion of older persons receiving asset income rose steadily over the next decade, and by 1980 two-thirds of the elderly received income from assets. This proportion remained relatively stable until the late 1990s when it began to decline. By 2004, the proportion of people 65 and older who received asset income had fallen to 56%. The decline in the proportion of people receiving income from assets coincided with a long period of falling interest rates and dividend yields. As the rate of return on these assets fell, fewer people chose to hold such assets. In 1969, interest, dividends, rent, and royalties provided 20% of the aggregate income of people 65 and older. This proportion steadily increased over the next two decades and peaked at 26% of total income in 1986. The share of the income of the elderly composed of income from assets has progressively fallen since 1986, and in 2004 only 12% of the income of people 65 and older came from this source. Among people 65 and older who received income from assets, the mean and median annual amounts received fluctuated from year to year. Mean annual income ranged from a low of about $5,000 per year to a high of about $7,500 per year, in 2004 dollars. Median income from assets was substantially lower than mean asset income because a relatively small proportion of individuals had very large amounts of asset income. Expressed in 2004 dollars, median income from assets was highest in 1984, reaching $2,637 that year. Since the mid-1980s, median asset income has steadily fallen. Among those who received income from interest, dividends, rent, and royalties in 2004, the median annual amount was just $817. 20 Between 1984 and 1994, the yield on 10-year Treasury notes fell from 12.4% to 7.1% and by 2004 had fallen to 4.3%. Dividend yields declined from 4.6% in 1984 to 2.8% in 1994 and 1.7% in 2004. (Source: Economic Report of the President, 2006.) elbaliava ton = a/n .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS 161,8 119,7 347,5 544,4 887,7 504,7 emocni rehtO 542,4 941,4 530,3 818,2 804,3 655,3 erafleW 359,31 018,21 716,01 429,8 a/n a/n emocni noisneP 221,5 226,6 308,6 161,5 689,5 652,6 emocni tessA 186,01 312,01 352,8 503,7 656,5 171,5 ytiruceS laicoS 954,92 100,72 206,81 987,41 930,41 794,41 sgninraE 267,32$ 752,32$ 270,02$ 266,51$ 924,31$ 414,31$ secruos lla morf emocnI 4002 0002 0991 0891 0791 9691 emocnI fo ecruoS )srallod 4002 ni( ecruoS hcaE morf redlO dna 56 elpoeP fo emocnI launnA naeM .11 elbaT elbaliava ton = a/n .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS 0.2 1.2 2.2 0.2 5.51 1.51 emocni rehtO 6.0 7.0 8.0 6.1 6.2 7.2 erafleW 2.12 7.91 8.91 3.51 a/n a/n emocni noisneP 3.21 2.71 0.42 4.22 5.91 4.02 emocni tessA 8.04 3.04 9.73 8.24 3.53 0.23 ytiruceS laicoS %0.32 %0.02 %3.51 %9.51 %1.72 %9.92 sgninraE 4002 0002 0991 0891 0791 9691 emocnI fo ecruoS redlO dna 56 elpoeP gnomA emocnI latoT fo egatnecreP a sa ecruoS hcaE morf emocnI .01 elbaT elbaliava ton = a/n .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS 5.5 0.6 7.7 9.6 2.42 6.42 emocni rehtO 5.3 8.3 5.5 5.8 2.9 2.9 erafleW 5.53 9.43 0.73 6.62 a/n a/n emocni noisneP 5.55 2.95 9.96 1.76 5.93 4.93 emocni tessA 2.88 8.98 0.19 5.09 9.57 7.47 ytiruceS laicoS 0.81 9.61 3.61 6.61 4.32 9.42 sgninraE %1.79 %8.79 %8.89 %7.89 %4.09 %1.09 emocni ynA 4002 0002 0991 0891 0791 9691 emocnI fo ecruoS ecruoS hcaE morf emocnI htiw redlO dna 56 egA elpoeP fo egatnecreP .9 elbaT survey, which collected information on income received in 1975. Before that, income from The CPS has collected data on pension income as a separate category only since the March 1976 .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS 4002-9691 ,+56 elpoeP gnoma ecruoS yb emocnI fo erahS .4 erugiF elbaliava ton = a/n .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS 997,4 088,3 398,2 954,2 981,5 321,5 emocni rehtO 006,3 742,3 413,2 473,2 081,3 521,3 erafleW 006,9 526,8 199,6 599,5 a/n a/n emocni noisneP 718 774,1 583,2 656,1 830,2 431,2 emocni tessA 993,01 309,9 630,8 212,7 762,5 668,4 ytiruceS laicoS 000,51 739,21 507,8 182,8 446,6 658,6 sgninraE 981,51$ 727,41$ 325,31$ 327,01$ 172,8$ 691,8$ secruos lla morf emocnI 4002 0002 0991 0891 0791 9691 emocnI fo ecruoS ) srallod 4002 ni( ecruoS hcaE morf redlO dna 56 slaudividnI fo emocnI launnA naideM . 21 elbaT pensions was included in a broad category of "other income." In 1975, 22% of people 65 and older received income from pensions earned through a job or jobs in either the public or private sectors or as the survivor of a worker who was receiving a pension. The percentage of people 65 and older receiving income from pensions rose until the early 1990s, peaking at 38% in 1992. The proportion of the elderly population receiving pension income has since fallen slightly. In 2004, 36% of people 65 and older received pension income.21 In 1975, income from pensions made up 14% of the total income of people 65 and older. This proportion increased over the next 15 years, along with the percentage of older persons receiving income from pensions, reaching a peak of 22% in 1993. Since then, pension income has comprised roughly 20% of the total income of people 65 and older each year. Among people 65 and older who received pension income, the mean annual amount (in 2004 dollars) rose from $8,848 in 1975 to $13,953 in 2004, an increase of 58% or 1.5% per year. Median pension income rose from $6,081 in 1975 to $9,600 in 2004, also increasing by 58% or 1.5% per year. In the late 1960s and early 1970s, about 10% of the elderly population in the United States received some form of cash welfare assistance from the federal or state governments. The largest source of cash welfare assistance for people 65 and older is the Supplemental Security Income (SSI) program, which was authorized by Congress in 1972 and began making payments to eligible low-income aged and disabled persons in 1974.22, 23 The proportion of the elderly population receiving cash welfare payments has steadily fallen since the mid-1970s, mainly because the proportion of people 65 and older who receive Social Security benefits has increased and the real value of Social Security benefits has risen due to the growth in real wages. The maximum eligible income limit for SSI benefits, in contrast, grows at the annual rate of price inflation.24 As a share of the aggregate income of people 65 and older, cash welfare payments fell from 3% in 1969 to 1% in 1986. Welfare income has been less than 1% of the total income of older Americans for each of the past 20 years. During the period from 1969 to 2004, the mean and median amounts of welfare income received by older individuals fluctuated within relatively narrow ranges, measured in constant 2004 dollars. Mean welfare income ranged from a low of $2,818 in 1980 to a high of $4,426 in 2002. Median welfare income reached a low of $2,261 in 1992 and a high of $3,629 in 2003. 21 This category includes pensions from previous employers or unions, and other retirement income, excluding Social Security and Veterans' Administration payments. It includes company or union pensions and profit sharing plans; annuities; military retirement; federal government pensions; state or local government pensions; Railroad Retirement; payments from annuities or paid-up insurance policies; and payments from IRA or Keogh accounts. 22 For more information on SSI, see CRS Report 94-486, Supplemental Security Income (SSI): A Fact Sheet, by Scott Szymendera. 23 This category includes only cash welfare payments. It does not include the value of food stamps, medical assistance, rental subsidies, heating assistance, or other in-kind transfers. 24 In any given year the rate of price inflation may exceed the rate of growth of average wages, but over long periods of time wages grow faster than prices because average wages grow at the average rate of inflation plus the rate of growth of labor productivity. Prices can grow faster than wages in the long run only if labor productivity fails to increase. Other sources of income recorded on the CPS include workers' compensation, unemployment compensation, alimony, child support, and financial assistance from friends or relatives not living in the same household. During the past 30 years, the proportion of people 65 and older receiving any income from these sources has consistently remained in a narrow range of 6% to 8% of the elderly population. As a share of the aggregate income of the elderly, all of these sources combined have in each of the past 30 years accounted for just 2% to 3% of total income. Among people 65 and older who received income from one or more of these sources in 2004, the mean amount received was $8,161 and the median amount was $4,799. This compares to mean and median amounts received from these sources in 1975 of $4,191 and $3,118, respectively. (All amounts are in 2004 dollars.) ¢ The sources of income received by people 65 and older whose incomes are at the lower end of the income distribution differ from the sources of income of people at the upper end of the income distribution. This was true of income throughout the period from 1969 to 2004. In 1975, individuals 65 and older whose incomes (in 2004 dollars) exceeded $17,784 were in the top 25% (the top quartile) among people in this age group. On average, they received 30% of their income from earnings, 22% from Social Security, 19% from pensions, 27% from assets, less than 1% from welfare, and 2% from other sources. That same year, individuals whose incomes were less than $6,424 (in 2004 dollars) were in the bottom quartile among individuals age 65 and older. Older individuals in the bottom income quartile received less than 1% of their income from earnings, 80% from Social Security, 1% from pensions, 3% from assets, 13% from welfare, and 2% from other sources. (See Figure 5 and Figure 6.) By 2004, the sources of income in the top and bottom quartiles of the income distribution had changed relatively little. In the top quartile--people 65 and older with 2004 income of $26,600 or more--earnings and pension income each had increased as shares of total income, while asset income had declined somewhat as a percentage of total income. In both 1975 and 2004, Social Security accounted for about $1 out of every $5 of income among people 65 and older with incomes in the top 25% of the income distribution. In the bottom quartile--people with 2004 income of less than $9,260--Social Security accounted for about $4 out of every $5 of income. Earnings accounted for only 1% of income in both 1975 and 2004. Although pensions and asset income increased slightly in relative significance among people 65 and older in the bottom income quartile, in 2004 both of these sources of income combined accounted for just 7% of their income. Cash welfare declined from 13% of the income received by persons in the bottom income quartile in 1975 to 5% in 2004. This was due both to the increase in the proportion of people 65 and older who received Social Security benefits and to growth in the real value of Social Security benefits. In the bottom income quartile, Social Security increased from 80% of total income in 1975 to 86% of total income in 2004. .yevruS noitalupoP tnerruC eht fo sisylana SRC :ecruoS 5791 ,elitrauQ yb emocnI fo secruoS .5 erugiF .yevruS noitalupoP tnerruC eht fo sisylana SRC :ecruoS 4002 ,elitrauQ yb emocnI fo secruoS . 6 erugiF Men and women are not equally likely to receive income from each of the four main income sources among individuals age 65 and older, and the importance of each source of income has changed for both men and women over the past 35 years. (See Figure 7.) Throughout this period, men 65 and older were more likely than women to have income from wages and salaries, income from assets, and income from pensions. In 1970, 25% of men 65 and older had wage and salary income, compared with 12% of women. By 2004, just 18% of older men had wage and salary income, whereas the proportion of women with wage and salary income had increased to 13%. Up until about 1980, men 65 and older also were more likely than women to receive income from Social Security. Since then, however, the percentage of both men and women 65 and older receiving Social Security has ranged between 88% and 92%. The percentage of both men and women 65 and older receiving income from assets increased sharply through the 1970s and 1980s. By 1990, 72% of men and 68% of women had asset income. By 2004, these figures had fallen to 59% of men and 53% of women. Although the percentage of both men and women receiving pension income (including survivor benefits) increased substantially between 1975 and 1990, the upward trend ceased in the early 1990s. Moreover, throughout the 20 years from 1975 to 1995, men 65 and older were more than twice as likely as older women to have received retired-worker or survivor benefits from a pension. Since 1995, the gap between the proportion of men and women receiving pension income has narrowed slightly, but this has been due more to a decline in the percentage of men receiving pension income rather than to an increase in the proportion of women with income from pensions. Older men and women also differ with respect to the amount of income that they receive from each source, with men typically receiving larger amounts. Among men age 65 and older who had wage and salary income in 1970, the median amount, in 2004 dollars, was $8,560. (See Table 13.) Among women age 65 and older who had wage and salary income in 1970, the median amount was $6,163. By 2004, the median wage and salary income of men 65 and older had increased to $20,800, a 143% increase. That same year, the median wage and salary income of women 65 and older was $12,000, or 95% higher than in 1970. Men also had higher median income from Social Security through the period from 1970 to 2004, but the rate of growth in the median benefit was slightly higher for women, as more women became eligible for retired worker benefits that were larger than the spousal benefit they would have received had they not worked or had worked less. Men had higher pension income than women, and the rate of growth of pension income was faster among men than women. Among men 65 and older who had pension income, the median amount rose from $7,096 in 1980 to $12,000 in 2004, an increase of 69%.25 Median pension income among women 65 and older rose from $4,347 in 1980 to $6,141 in 2004, an increase of 41%. Men also had higher median income from assets, although for both men and women the median income from this source was relatively small compared to income from earnings, pensions, and Social Security. 25 The CPS began to collect data on pension income as a separate category in 1976. .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS Pensions Asset Income Social Security Wages & Salaries Women Men Women Men Women Men Women Men 000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 0.0% 0000000000000000000000000000000000000000000000000000000000000000000000000 0 0 0 0 0 0 0 0 0 000000000000000000000000000000000 0000000000000000000000000000000000000000000000 0 0 0 0 0 0 0 0 0 0 000000000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 00000000000000000 000000000000000000000000000000000000000000000000 0 0 0 00000000000000000 00000000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000 0 0 0 00000000000000000 00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000 0 0 0 0 0 000000000000000000000000000000000000000000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0000000000000000 0 0 0 0 0 000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000 10.0% 00000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000000000000 0 0 0 0 0 000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000 00000000000000000000000000000000 0 0 0 0000000000000000 0 0 0 0 0 000000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000 0 0 0 00000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000 0 0 0 00000000000000000000000000000000 20.0% 00000000000000000000000000000000 0 0 0 0 000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000 000000 00000000000000000000000000000000000000000000000000000000000000000000000000 0 0 0 0 00000000000000000000000000000000 0 0 0 0 00000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000 00000000000000000000000000000000 0 0 0 00000000000000000 0000000000000000 0 0 0 00000000000000000000000000000000 0 0 0 0 0 000000000000000000000000000000000000000000000000 0 0 0 0 0 0 0 0 0 00000000000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 00000000000000000 000000000000000000000000000000000000000000000000 0 0 0 00000000000000000 30.0% 00000000000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000 2004 000000000000000 00000000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 00000000000000000 000000000000000000000000000000000000000000000000 0 0 0 00000000000000000 0000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 000000000000000000000000000000000000000000000000000000000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0000000000000000 0 0 0 0 0 40.0% 2000 00000 000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000 0 0 0 0 000000000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000000 0000000000000000000000000000000000000000000000000000000000 00000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 1990 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 50.0% 000000000000000 000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000000000000 00000000000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 00000000000000000 000000000000000000000000000000000000000000000000 0 0 0 00000000000000000 1980 00000 0000000000000000000000000000000000000000000000000000000000 0000000000000000 0 0 0 0 00000000000000000000000000000000000000000000000000000000000000 0 0 0 0 0 000000000000000000000000000000000000000000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0000000000000000 0 0 0 0 0 000000000000000 00000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000 60.0% 1970 00000000000 0000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000 0000000000000000000000000000000 0 0 0 0 0 000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000 0000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000000000 70.0% 000000000000000000000000000 00000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000 0 0 0 0 000000000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 80.0% 000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000000000000 0 0 0 0 0 000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000000000000000000000 00000000000000000000000000000000000000000000000000000000000000 90.0% Percentage of People with Income 000000000000000000000000000000000000000000 0000000000 100.0% raeY yb ,ecruoS hcaE morf emocnI htiw +56 egA nemoW dna neM fo egatnecreP . 7 erugiF 31 elbaT ecruoS hcaE morf redlO dna 56 egA nemoW dna neM fo emocnI naideM . )srallod 4002 ni stnuoma( seiralaS & segaW ytiruceS laicoS stessA morf emocnI emocnI noisneP nemoW neM nemoW neM nemoW neM nemoW neM 0791 065,8$ 361,6$ 848,6$ 353,4$ 242,2$ 598,1$ a/n a/n 0891 341,01 444,6 607,8 371,6 769,1 355,1 690,7 743,4 0991 387,11 317,7 988,9 627,6 014,2 543,2 688,8 028,4 0002 275,71 687,8 106,11 081,8 096,1 982,1 778,01 298,5 4002 008,02 000,21 385,21 997,8 469 057 000,21 141,6 .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS elbaliava ton = a/n The previous section of this report described the sources and amounts of income received by people 65 and older at the level of the individual recipient. Although a substantial--and growing--proportion of Americans of all ages live in single-person households, a majority live with a spouse, other relatives, a roommate, or others with whom they share household expenses.26 Consequently, gaining a complete picture of the income of older Americans, how it has changed over time, and how it compares with the income of the non-elderly population, requires an examination of household income as well as individual income. This section of the report describes income among all U.S. households and also among elderly households--defined here as those in which either the householder27 or householder's spouse is 65 or older--and nonelderly households, defined here as those in which neither the householder nor spouse is 65 or older. Median household income rose faster among households in which the householder or spouse was 65 or older than among households headed by younger persons during the period from 1969 through 2004. Nevertheless, in 2004, the median income of households in which the householder or spouse was 65 or older ($25,210) was just half of the median income of households in which neither the householder nor spouse had reached age 65 ($50,466). Elderly households, however, tend to be smaller (averaging 1.7 residents) than nonelderly households (with an average of 2.8 residents) and they do not have all of the work-related and child-rearing expenses that many nonelderly households must pay. When comparing the income of elderly households with the household income of the nonelderly population, it is important to keep in mind that the households in which people 65 and older live tend to be smaller than the households of younger adults. During the past 35 years, average household size has shrunk among both elderly and nonelderly households, and while the decline 26 In 1969, 16.6% of all U.S. households were one-person households, as were 38.9% of households in which the householder was 65 or older. In 2005, 26.4% of all households were one-person households, as were 45.8% in which the householder was 65 or older. 27 The Census Bureau defines the householder as the person in whose name the housing unit is owned or rented. In a married couple, the householder may be either the husband or wife. has been greater among nonelderly households, they remain larger, on average, than elderly households. In 1970, there were 3.5 persons in the average nonelderly household: 2.1 adults and 1.4 children. (See Table 14.) The average elderly household had 1.9 people in 1970. By 2005, the average number of people in nonelderly households had fallen to 2.8 people: 1.9 adults and 0.9 children. The average size of an elderly household had fallen to 1.7 people. Because the average elderly household has 1.1 fewer people than the average nonelderly household, it requires less income to maintain a comparable standard of living. 41 elbaT redlohesuoH fo egA dna raeY yb eziS dlohesuoH egarevA . 56 rednu redlohesuoH +56 egA redlohesuoH raeY naeM naeM naeM naeM fo rebmun dlohesuoh fo rebmun dlohesuoh stluda ezis stluda ezis 0791 5.3 1.2 9.1 8.1 0891 0.3 0.2 7.1 7.1 0991 9.2 0.2 7.1 7.1 0002 8.2 9.1 7.1 7.1 5002 8.2 9.1 7.1 7.1 .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS ¢ Adjusted for inflation, median household income in the United States rose from $35,539 in 1969 to $44,214 in 2004, an increase of 24% or 0.6% per year in real terms. (See Tables 15 and 16.) Real median household income reached a peak of $45,302 in 2000 and fell by $1,100 or 2.4% between 2000 and 2004. Among households in which neither the householder nor the householder's spouse was 65 or older, median income rose from $40,278 in 1969 to $50,466 in 2004, an increase of 25% or 0.6% annually, on average. Among households in which either the householder or the householder's spouse was 65 or older, real median income rose from $14,498 in 1969 to $25,210 in 2004, an increase of 74%, or 1.6% annually, on average. redlohesuoH fo egA yb ,emocnI dlohesuoH naideM dna naeM .51 elbaT )srallod 4002 ni( llA dna redlohesuoH esuopS ro redlohesuoH raeY emocnI sdlohesuoH 56 egA rednU esuopS redlO ro 56 naideM naeM naideM naeM naideM naeM 9691 873,04$ 935,53$ 688,44$ 872,04$ 393,22$ 894,41$ 0791 324,04 164,53 689,44 592,04 303,22 146,41 0891 748,24 936,63 932,74 358,14 424,62 524,81 0991 350,94 630,04 916,35 674,54 371,33 019,22 llA dna redlohesuoH esuopS ro redlohesuoH raeY emocnI sdlohesuoH 56 egA rednU esuopS redlO ro 56 naideM naeM naideM naeM naideM naeM 0002 064,16 203,54 247,76 086,25 664,83 075,52 4002 035,06 412,44 334,66 664,05 369,83 012,52 .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS For most of the period from 1969 to 2004, the real household income of elderly households-- those in which either the householder or the householder's spouse was 65 or older--grew faster than the real income of younger households. For example, over the period from 1969 to 2004, the real median income of elderly households grew by 74%, compared to 25% for nonelderly households. Since 1990, however, the rates of income growth in elderly and nonelderly households have been much closer together, each increasing by 10% to 11% over that period. Since 2000, however, although the real income of nonelderly households has fallen by 4.2%, the income of elderly households has fallen by just 1.4%. In constant dollars, the total increases in median household income among elderly and nonelderly households since 1969 have not differed greatly. Between 1969 and 2004, the real income of households in which neither the householder nor spouse was 65 or older grew by $10,188, in 2004 dollars. During the same period, the real median income of elderly households grew by $10,712. One reason the percentage change in household income has been greater in elderly households is simply that the income of these households was growing from a much smaller base. In 1969, the median income of elderly households, expressed in 2004 dollars was just $14,498. An increase of $1,000 from this amount would represent a percentage change of 7%, whereas a $1,000 increase in the 1969 median income of nonelderly households ($40,278, in 2004 dollars) would represent an increase of just 2.5%. In percentage terms, the increase in median income among elderly households since the late 1960s looks relatively large because their median household income was--and is--much lower than the median household income of the nonelderly population. 61 elbaT fo egA yb ,4002 ot 9691 ,emocnI dlohesuoH naideM ni egnahC egatnecreP . redlohesuoH )srallod 4002 ni( llA dna redlohesuoH ro redlohesuoH emocnI sdlohesuoH 56 egA rednU esuopS redlO ro 56 esuopS sraeY launnA egnahC latoT launnA egnahC latoT launnA egnahC latoT egarevA egarevA egarevA 4002-9691 %4.42 %6.0 %3.52 %6.0 %9.37 %6.1 4002-0791 7.42 6.0 2.52 7.0 2.27 6.1 4002-0891 7.02 8.0 6.02 8.0 8.63 3.1 4002-0991 4.01 7.0 0.11 7.0 0.01 6.0 4002-0002 4.2- 5.0- 2.4- 9.0- 4.1- 3.0- .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS Household incomes have changed not only at the median--the middle of the distribution--but also at the upper and lower ends of the income distribution. At the 75th percentile--marking the point that separates the highest quarter of household incomes from the lowest three-quarters-- incomes grew by 47% among nonelderly households from 1969 to 2004 and by 64% among households in which the householder or spouse was 65 or older. In constant 2004 dollars, this represented an increase in household income of $27,234 for nonelderly households at the 75th percentile and an increase of $18,186 for elderly households at the 75th percentile. (See Tables 17 and 18.) redlohesuoH fo egA yb ,selitnecreP ht52 dna ht57 ta emocnI dlohesuoH .71 elbaT )srallod 4002 ni( llA dna redlohesuoH esuopS ro redlohesuoH emocnI sdlohesuoH 56 egA rednU esuopS redlO ro 56 raeY 57 ht ht52 ht57 ht52 ht57 ht52 elitnecrep elitnecrep elitnecrep elitnecrep elitnecrep elitnecrep 9691 987,35$ 688,81$ 236,75$ 416,52$ 414,82$ 817,7$ 0791 909,35 846,81 049,75 468,42 421,82 038,7 0891 269,85 938,81 644,36 351,42 039,23 562,01 0991 913,66 103,02 075,17 144,52 412,14 364,21 0002 496,87 291,32 892,58 361,82 648,54 319,31 4002 050,87 002,22 668,48 088,62 006,64 991,41 .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS At the lower end of the income distribution, rates of growth in household income differed dramatically between elderly and nonelderly households over the period from 1969 to 2004. Among nonelderly households, income at the 25th percentile grew by just 5% in real terms from 1969 to 2004. During the four years from 2000 to 2004, household incomes at the 25th percentile fell by 5%. Among elderly households, however, incomes at the 25th percentile grew by 84% from 1969 through 2004, and by 2% from 2000 through 2004. The steady growth in income among elderly households in the lowest quartile of the income distribution since the late 1960s is largely due to the fact that the great preponderance of their income comes from Social Security. Initial Social Security benefits are based on the real value of average lifetime wages, and the benefit formula is designed to replace a higher percentage of average lifetime earnings for low- wage workers. During the period from 1969 through 2004, the Social Security national average wage index grew from $5,894 to $35,649, an average rate of increase of 5.0% per year.28 During the same period, real wages grew by about 1% per year, which was reflected in higher real Social Security benefits for new retirees each year.29 Once Social Security benefits begin, they are 28 See http://www.ssa.gov/OACT/COLA/AWI.html. 29 From 1969 to 2004, the price level as measured by the Personal Consumption Expenditure Index of the National Income and Product Accounts rose from 25.3 to 108.2, an average annual rate of increase of 4.1%.(Source: Economic Report of the President, February 2006, Table B-7, page 290.) adjusted each year by the rate of change in the Consumer Price Index, thus preventing the real value of the benefit from being eroded by inflation. 81 elbaT 52 dna ht57 ta emocnI dlohesuoH ni egnahC egatnecreP evitalumuC . ht redlohesuoH fo egA yb ,selitnecreP )srallod 4002 ni( llA dna redlohesuoH ro redlohesuoH emocnI sdlohesuoH 56 egA rednu esuopS redlO ro 56 esuopS sraeY 57 ht ht52 ht57 ht52 ht57 ht52 elitnecrep elitnecrep elitnecrep elitnecrep elitnecrep elitnecrep 4002-9691 %1.54 %5.71 %3.74 %9.4 %0.46 %0.48 4002-0791 8.44 0.91 5.64 1.8 7.56 3.18 4002-0891 4.23 8.71 8.33 3.11 5.14 3.83 4002-0991 7.71 4.9 6.81 7.5 1.31 9.31 4002-0002 8.0- 3.4- 5.0- 6.4- 6.1 1.2 .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS ¢ ¢ The steady rise in the median income of elderly households over the past 35 years coincided with a dramatic decline in the proportion of older Americans living in poverty. In 1969, nearly a quarter of Americans 65 and older had family incomes below the federal poverty threshold, and the poverty rate among the population 65 and older was more than double the poverty rate among adults 18 to 64 years old. By the early 1990s, the poverty rate among people 65 and older had fallen below the poverty rate among adults age 18 to 64 and it has remained lower since that time. During the same period of time, the ratio of the poverty threshold to the median income of the population has fallen as wage growth has outpaced the rate of inflation, by which the poverty threshold is adjusted each year. As a consequence, those who are officially poor have become progressively less well-off than households with income at the median. Nevertheless, the substantial reduction in the proportion of older Americans living in poverty must be regarded as one of the most important economic developments of the past 35 years. Without the decline in elderly poverty, the economic burden of supporting those who can no longer work in old age would weigh that much more heavily on their adult children, and many millions of older Americans would likely have to give up their own households to live with other relatives. ¢ ¢ The percentage of older Americans in poverty has fallen dramatically over the past 35 years, from one-in-four people age 65 and older in 1969 to just one-in-ten in 2004. As the result of the dramatic decline in elderly poverty and a relatively constant poverty rate among working-age Americans, by the early 1990s the poverty rate for people 65 and older fell below that of adults age 18 to 64. By 2004, the poverty rate among Americans age 65 and older had fallen to 9.8%, or 1.5 percentage points lower than the poverty rate among adults age 18 to 64. However, while the share of people age 65 and older in poverty has fallen, the number of poor elderly has remained relatively constant since the mid-1970s due to the growth in the total number of elderly. (See Table 19.) 91 elbaT raeY yb ,redlO dna 81 egA slaudividnI fo sutatS ytrevoP . dlO sraeY 46 ot 81 elpoeP raeY redlO dna 56 elpoeP ni tnecreP ni rebmuN rebmuN ni tnecreP ni rebmuN rebmuN ytrevop ytrevop )s000( ytrevop ytrevop )s000( 0791 455,311 781,01 0.9 074,91 397,4 6.42 5791 221,421 654,11 2.9 266,12 713,3 3.51 0891 824,731 858,31 1.01 686,42 178,3 7.51 5891 693,641 895,61 3.11 223,72 654,3 6.21 0991 205,351 694,61 7.01 390,03 856,3 2.21 5991 805,161 244,81 4.11 856,13 813,3 5.01 0002 836,371 176,61 6.9 665,33 323,3 9.9 4002 121,281 415,02 3.11 312,53 754,3 8.9 .lmth.3voptsh/voptsih/ytrevop/www/sehh/vog.susnec.www//:ptth eeS :ecruoS The decline in the elderly poverty rate was due both to the growth of older Americans' incomes and also to the constant real value of the poverty threshold. The growth in wages from year to year reflects both the rising general level of prices and gains in labor productivity. Because labor becomes more productive over time--as a result of better education and training, improved methods of production and distribution, and new technologies--wages rise faster than prices over the long run. As noted above, from 1969 through 2004 average wages in the United States grew by about 1% more per year than prices. Because both initial Social Security benefits and most pension benefits are based on measures of career-average wages, higher real wages have caused the average Social Security and pension benefits of each successive cohort of retirees to exceed those of earlier cohorts. The rising real values of these sources of income have led to an increasing standard of living among older Americans. Further, retirees' Social Security benefits are increased each year by a cost-of-living adjustment that is equal to the rate of inflation. This has kept the real value of Social Security benefits from eroding over time.30 The increase in average real income of the elderly population, which is due mainly to the higher career-average earnings of each successive generation of retirees, is not reflected in the federal poverty thresholds. The poverty thresholds are intended to measure the income necessary to maintain a minimally adequate standard of living, and thus they are increased each year by the rate of inflation. In other words, the poverty thresholds measure the amount of income necessary to maintain a constant standard of living, not the amount of income needed to keep up with the rising average standard of living of the working population. The federal poverty thresholds were developed by government economists in the 1960s to serve as a standard for measuring income adequacy.31 The thresholds are adjusted annually by the rate 30 Many public-sector pension plans make regular cost-of-living adjustments (COLAs) to retirees' pensions. Most private-sector pensions do not pay annual COLAs. 31 The poverty threshold has changed slightly over time. For a comprehensive history of the poverty threshold see (continued...) of inflation as measured by the consumer price index (CPI-U) so that the real (inflation-adjusted) value remains constant over time. Because the real value of the poverty threshold has remained constant over time while the real income of the elderly has been rising, the poverty threshold has fallen as a percentage of median income. For example, in 1970 the poverty threshold ($1,861) for an individual 65 or older was equal to 89% of the median income ($1,959) of single people age 65 and older. Over the next 34 years, the median income grew 666% while the poverty threshold only rose 387%. Thus, the 2004 poverty threshold for a single person age 65 and older ($9,060) was only 60% of the median income for an individual in that age group ($15,000). In the future, other things being equal, the disparity between rising real incomes and a fixed real poverty threshold will lead to a decreasing proportion of the elderly being in poverty.32 ¢ In 2004, poverty among the elderly was highest among women, minorities, single persons, those with less education, and the very old. (See Table 20.) Twelve percent of women over age 65 were in poverty compared with 7% of men. While only 8% of non-Hispanic whites age 65 and older were in poverty, 24% of non-Hispanic black seniors and 14% of Hispanic seniors were in poverty. Married couples had significantly lower levels of poverty (5%) than singles (16%). Poverty rates are higher than average among the less-educated elderly. In 2004, older individuals with less than a high school education had a poverty rate (19%) that was more than three times as high as the poverty rate among college graduates. Finally, poverty rates are higher among individuals age 80 and older than among those 65 to 79 years old. Just 9% of people between age 65 and 79 were poor in 2004, compared with 11% of individuals age 80 and older. cihpargomeD yb ,4002 ni redlO dna 81 egA slaudividnI fo sutatS ytrevoP .02 elbaT scitsiretcarahC ,ytrevoP ni tnecreP ,ytrevoP ni tnecreP ,ytrevoP ni rebmuN 46-81 egA +56 egA +56 )s000( llA %3.11 %8.9 754,3 redneG elaM 6.9 0.7 850,1 elameF 8.21 0.21 893,2 yticinhtE dna ecaR ,etihW cinapsiH toN 3.8 5.7 051,2 cinapsiH toN ,kcalB 3.02 7.32 786 a rehtO 1.11 7.81 014 cinapsiH 3.81 1.41 012 (...continued) Gordon M. Fisher "The Development and History of the Poverty Threshold" Social Security Bulletin, vo. 55 no. 4, 1992 at http://www.ssa.gov/history/fisheronpoverty.html. 32 Barbara Butrica and Cori Uccello, "How Will Boomers Fare at Retirement?" The Urban Institute Retirement Project, no. 2, November 2005 at http://www.urban.org/UploadedPDF/900892_boomers.pdf ,ytrevoP ni tnecreP ,ytrevoP ni tnecreP ,ytrevoP ni rebmuN 46-81 egA +56 egA +56 )s000( sutatS latiraM deirraM 8.5 5.4 178 dewodiw ,decrovid ,elgniS 9.71 2.61 585,2 noitacudE loohcS hgiH naht sseL 6.62 7.81 917,1 etaudarG loohcS hgiH 8.21 9.7 800,1 egelloC emoS 9.8 6.5 963 etaudarG egelloC 1.4 4.5 063 .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM 5002 eht fo sisylana SRC :ecruoS .egatireh naciremA evitaN dna naisA fo slaudividni ylniam sedulcni "rehtO" .a As workers pass age 60, they begin--gradually, in many cases--to withdraw from the paid labor force and to rely on pensions, Social Security, and personal savings to supply more of their income. A positive development since the 1960s has been that the rate of decline in median personal and household income (measured in constant dollars) that occurs as individuals reach their mid- to late 60s appears to have slowed. This has occurred despite the fact that a smaller proportion of people over age 60 work today than was the case 35 years ago. The long-term growth in real wages--and in the real value of Social Security and pension benefits that are based on these wages--has contributed greatly to the economic well-being of today's retirees. In addition, the growth--recently stalled--in the proportion of older Americans with income from pensions has helped more people maintain a standard of living in retirement that is comparable to that which they enjoyed while working. More Americans 65 and older also receive asset income than did in the 1960s and 1970s, but the amounts received as income from this source (with a median value of $817 in 2004) pale in comparison to the amounts that most people 65 and older receive from earnings, pensions, and Social Security. As was noted earlier in Table 6, employment rates are lower among people 60 to 64 years old than among those under age 60, and they fall even further after age 65. Among people 65 to 69 years old in 2004, for example, just 33% were employed at any time during the year. Rates of full-time employment also decline as workers age, and among older Americans who remain in the workforce after age 60, many work part-time. In 2004, while 86% of people 55 to 59 years old worked full-time, this proportion fell to 78% among workers 60 to 64 years old and to 59% among those 65 to 69 years old. As older workers reduce their hours of work and gradually withdraw from the labor force, their earnings fall and they begin to rely to a greater extent on income from pensions, savings, and after age 62, Social Security.33 Earnings, often from part-time 33 Social Security retired worker benefits are first available at age 62. Workers who become disabled may be eligible for Social Security Disability Insurance at any age. Rates of disability are higher among people 55 and older than among younger individuals. employment, remain an important source of income for many older people, but both their average hours worked and average earnings per hour are lower than in their peak earning years. The income data collected in the CPS allow us to see how the median incomes differ between people of different ages, and how the median incomes of people in different age groups change as they age. For example, the top row of Table 21 shows that individuals 55 to 59 years old had a median income in 1969 of $23,437, measured in 2004 dollars. People who were 55 to 59 years old in1969 all were born between 1910 and 1914. Demographers refer to people born in the same year or group of years as a "birth cohort." Following this same birth cohort forward five years to 1974, Table 21 shows that individuals who were 60 to 64 years old that year had a median income of $18,562, or $4,875 lower than the median income of this same birth cohort five years earlier. Five years later in 1979, people in the 1910-1914 birth cohort were 65 to 69 years old and these individuals had a median income of $12,039, or $11,398 less than the median income of individuals in this birth cohort 10 years earlier. Following each of the pairs of diagonal arrows in this table allows one to see how median individual incomes of successive cohorts changed as they aged. The most recent birth cohort for which income data are available over a 10-year period comprises people who were 55 to 59 in 1994. In constant dollars, the median income of individuals in this birth cohort declined from $24,068 in 1994 to $22,321 in 1999 (at age 60-64) and to $18,199 in 2004 (at age 65 to 69). The third column of Table 21 shows median incomes at age 60 to 64 and age 65 to 69 as a percentage of the median income of the same birth cohort at age 55 to 59. For example, the median income of individuals who were 60 to 64 years old in 1974 was 79.2% of the median income of this same cohort in 1969, when they were 55 to 59 years old. Their median income in 1979, at age 65 to 69, was 51.4% of their income in 1969 at age 55 to 59. Looking at the most recent cohort for which income data are available for a 10-year period, the reader can see that the median individual income of people who were 60 to 64 years old in 1999 was 92.7% of the median income of the same cohort in 1994 at age 55 to 59. In 2004, when the people in this cohort had reached age 65 to 69, their median income was 75.6% of the median income of people who were age 55 to 59 ten years earlier in 1994. Table 22 shows the median household income in selected years of people in these same three age cohorts as Table 21: 55 to 59, 60 to 64, and 65 to 69. Here a similar pattern is apparent, with median household income falling as people age. Among those who were 55 to 59 in 1969, median household income was $39,151, measured in 2004 dollars. Five years later in 1974, the median household income of this age group, who were then 60 to 64 years old, was $33,789, or $5,362 lower than the household income of this cohort in 1969. By 1979, at age 65 to 69, the median household income of this cohort was $25,357, or $13,794 lower than the median household income of this cohort 10 years earlier. For the most recent 10-year period, median household income among those who were 55 to 59 in 1994 was $50,400 in that year. Five years later in 1999 when they were 60 to 64 years old, the median household income of this cohort was $48,211. By 2004, at age 65 to 69, the median household income of this cohort was $37,989.34 34 Average household size declines as people age, but the decline in the median household incomes shown in Table 22 appears to be due mainly to the declining income of the people in households rather than to a decline in the number of people in the household. When we looked at households of fixed sizes, we still found that median household incomes (continued...) The third column of Table 22 shows median household incomes at age 60 to 64 and age 65 to 69 as a percentage of the median income of the same birth cohort at age 55 to 59. The median household income of people age 60 to 64 in 1974 was 86.3% of the median household income of this same cohort five years earlier when they were 55 to 59 years old. By 1979, the median household income of people age 65 to 69 was 64.8% of the median household income of this same age cohort 10 years earlier when they were 55 to 59 years old. For the most recent cohort for which ten years of income data are available, the median household income of people who were 60 to 64 in 1994 was 95.7% of the median income of the same cohort five years earlier at age 55 to 59. By 2004, when they had reached age 65 to 69, the median household income of this cohort was 75.4% of the median income of the same cohort ten years earlier when they were 55 to 59 years old. The data displayed in Tables 21 and 22 show that real median incomes have risen at both the individual and household level among all three age groups since 1969. Real median individual income was more variable than median household income, but the trend was upward for both. Some of the increase in real median incomes in the three age categories was due to increased employment among older persons, particularly women. Since the mid-1990s, employment among men 60 and older also has risen. Over time, the ratio of median individual and household incomes at ages 65 to 69 to income at age 55 to 59 also has risen, although the changes in the household income ratios were variable rather than increasing steadily. Although, at the median, the trend in incomes shown in Tables 21 and 22 is positive, it is important to keep in mind that, by definition, half of all individuals and households have incomes less than their respective medians. For some people, their income in old age may be less than the amount needed to maintain their desired standard of living. Many financial analysts recommend that workers aim for an income replacement rate of 70% or more in their first year of retirement if they want to maintain the standard of living they enjoyed while working.35 The median household income of people who were 65 to 69 years old in 2004 was 75% of the household income of people in this age cohort 10 years earlier when they were 55 to 59 years old. Thus, a household that was at exactly the median income for its birth cohort in both 1994 and 2004, and that had retired in the interim, would probably find itself able to maintain a standard of living in retirement that was comparable to the lifestyle they had enjoyed while working. Those whose income from pensions, savings, and Social Security do not reach this threshold--whose income in retirement falls below 70% of their pre-retirement income--may have to make difficult adjustments in order to keep their spending in retirement within their more limited incomes. For most individuals, the most direct way to boost the income they will have in retirement, both in absolute terms and relative to pre-retirement income, would be to increase the percentage of earnings that they save in employer-sponsored retirement plans, individual retirement accounts, or other savings plans. (...continued) fell between ages 55 to 59 and 65 to 69. For example, the median household income in 1979 of persons 65 to 69 years old who lived in two-person households was 73% of the median household income in 1969 of persons 55 to 59 years old who lived in two-person households. The equivalent ratio for one-person households was 67%. Likewise, the median household income in 2004 of persons 65 to 69 years old in two-person households was 81% of the median household income in 1994 of persons 55 to 59 years old in two-person households. The equivalent ratio for one-person households was 76%. 35 The ratios in Table 22 are not true "replacement rates," which measure income in the first year or (or n years) of retirement to income in the last year (or n years) of employment. The ratios in the tables are based on the median income of everyone in each age cohort, whether working full-time, part-time, or fully retired. Nevertheless, they demonstrate the effect on the median income of each cohort of the gradual retirement of the members of the cohort. .xednI ECP APIN eht no desab srallod 4002 ot detsujda neeb evah semocnI .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS )srallod 4002 ni( slavretnI raeY-eviF ta emocnI laudividnI naideM .12 elbaT dramatic decline in the percentage of people 65 and older living in poverty. These developments The past 35 years have seen a substantial increase in the real incomes of older Americans and a .xednI ECP APIN eht no desab srallod 4002 ot detsujda neeb evah semocnI .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS slavretnI raeY-eviF ta emocnI dlohesuoH naideM . 22 elbaT can be attributed both to long-term economic growth and increases in real wages and also to public policies that have contributed to improving pension security and encouraged retirement saving. Perhaps the single greatest contributor to the improved economic situation of the elderly in the United States has been the growth in real wages that they experienced during their working lives. In real terms, measured in 2004 dollars, the median annual earnings of workers between the ages of 18 and 64 rose from $21,777 in 1969 to $28,251 in 2004. Among households in which neither the householder nor spouse was 65 or older, real median income rose from $40,278 in 1969 to $50,446 in 2004. Growth in real wages--and in the Social Security and pensions based on these wages--has contributed greatly to the economic well-being of today's retirees. Actions taken by Congress over the past 35 years also have affected the incomes of older Americans. In 1974, Congress passed the Employee Retirement Income Security Act (ERISA), which set funding standards and vesting requirements for pension plans sponsored by employers in the private sector. This law also authorized individual retirement accounts (IRAs) which encourage workers to save for retirement by deferring income taxes on some contributions and on investment earnings. In the Revenue Act of 1978, Congress added section 401(k) to the Internal Revenue Code, which authorized employers to establish retirement savings plans for employees in which contributions and investment earnings grow on a tax-deferred basis until retirement. Legislation affecting Social Security has also contributed to increasing the income of older Americans. The Social Security Amendments of 1972 provided for automatic cost-of-living adjustments (COLAs), which prevent the real value of Social Security benefits from being eroded by inflation. The 1977 Social Security amendments established the current benefit formula, in which initial benefits are based on each worker's career-average wages, indexed to current values based on a national average wage index. This assures that each successive cohort of workers receives a Social Security benefit that reflects the growth in real wages that occurred during their working lives. In 2000, Congress repealed the "earnings test" for workers who have reached the Social Security full retirement age. This test reduces benefits for Social Security beneficiaries whose earnings exceed a threshold set in law. The earnings test now applies only to beneficiaries under the full retirement age. As the 78 million members of the "baby boom"--people born between 1946 and 1964--approach retirement, Congress is likely to continue to debate changes to the federal laws affecting pensions, retirement savings, and Social Security. Future retirees are likely to live longer and will need to accumulate relatively greater retirement assets than past retirees if they are to maintain their standard of living through these longer periods of retirement. With Social Security facing a financial shortfall and the number of private-sector pensions continuing to decline, it is likely that a relatively greater share of current workers' future retirement income will have to be financed from their own personal savings. ¡ 7.6 9.3 9.53 8.36 4.98 9.51 8.79 496,13 493,23 8991 8.6 4.4 5.53 9.26 9.98 3.51 9.79 104,13 280,23 7991 9.6 7.4 2.53 1.46 1.09 6.51 9.79 991,13 778,13 6991 1.7 3.4 4.53 2.76 8.09 7.51 2.89 180,13 856,13 5991 4.7 9.4 2.63 0.86 8.09 4.51 1.89 676,03 762,13 4991 1.8 0.5 5.73 8.76 5.09 8.51 2.89 322,03 977,03 3991 5.7 9.5 0.83 0.86 7.19 7.41 9.89 835,03 078,03 2991 9.7 9.5 7.73 2.96 2.09 5.51 9.89 652,03 095,03 1991 7.7 5.5 0.73 9.96 0.19 3.61 8.89 437,92 390,03 0991 1.8 0.6 8.53 6.96 8.09 3.61 2.99 023,92 665,92 9891 4.7 6.5 2.53 4.86 9.09 3.61 1.99 747,82 220,92 8891 9.7 5.5 5.43 6.96 1.19 6.51 0.99 691,82 784,82 7891 6.6 0.6 3.13 9.76 7.19 7.41 7.89 716,72 579,72 6891 2.6 6.6 3.03 6.76 0.29 0.51 7.89 679,62 223,72 5891 7.6 0.7 8.92 6.86 6.19 1.51 9.89 225,62 818,62 4891 3.6 0.7 2.92 7.96 2.19 1.51 7.89 839,52 192,62 3891 3.6 8.6 5.72 5.86 9.09 9.51 8.89 234,52 837,52 2891 1.6 5.7 2.72 3.76 2.19 1.61 9.89 749,42 132,52 1891 9.6 5.8 6.62 1.76 5.09 6.61 7.89 353,42 686,42 0891 2.8 0.01 %3.22 4.54 5.38 5.91 8.39 113,02 266,12 5791 2.42 2.9 a 5.93 9.57 4.32 4.09 393,71 132,91 0791 %6.42 %2.9 a %4.93 %7.47 %9.42 %1.09 620,71 998,81 9691 aemocnI emocnI ytiruceS rehtO erafleW noisneP emocnI tessA laicoS sgninraE emocnI )sdnasuoht( )sdnasuoht( raeY gnivieceR gnivieceR gnivieceR gnivieceR gnivieceR htiW ynA htiw emocnI ynA +56 elpoeP emocnI egatnecreP egatnecreP egatnecreP egatnecreP egatnecreP egatnecreP egatnecreP htiw rebmuN fo rebmuN raeY yb ,ecruoS hcaE morf emocnI htiw redlO dna 56 egA elpoeP fo egatnecreP .1-A elbaT 344,2 684,2 838,6 963,2 168,7 811,9 521,31 691,82 7891 773,2 806,2 982,6 134,2 490,8 493,9 527,21 716,72 6891 614,2 315,2 988,5 355,2 200,8 979,7 626,21 679,62 5891 694,2 354,2 099,5 736,2 789,7 784,7 493,21 225,62 4891 095,2 405,2 050,6 270,2 478,7 882,8 800,21 839,52 3891 813,2 833,2 146,5 170,2 718,7 123,8 887,11 234,52 2891 144,2 593,2 306,5 109,1 763,7 896,7 161,11 749,42 1891 954,2 473,2 599,5 656,1 212,7 182,8 327,01 353,42 0891 811,3 945,2 180,6 951,2 661,7 698,6 741,01 113,02 5791 981,5 081,3 a 830,2 762,5 446,6 172,8 393,71 0791 321,5$ 521,3$ a 431,2$ 668,4$ 658,6$ 691,8$ 620,71 9691 a emocnI rehtO emocnI erafleW emocnI noisneP emocnI tessA ytiruceS laicoS sgninraE emocnI latoT emocnI htiW raeY llA naideM naideM naideM naideM naideM naideM naideM rebmuN emocnI )srallod 4002 ni( ecruoS emocnI yb ,redlO dna 56 egA slaudividnI fo emocnI launnA naideM .2-A elbaT ".emocni rehto" htiw snoisnep morf emocni dedulcni SPC eht ,yevrus 6791 hcraM eht ot roirP .a .noitalupop lanoitutitsninon ,nailivic eht tneserper ataD .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS 5.5 5.3 1.53 5.55 2.88 0.81 1.79 781,43 312,53 4002 6.5 7.3 3.53 4.65 1.98 5.71 5.79 977,33 956,43 3002 1.6 6.3 4.43 8.55 8.88 6.61 4.79 433,33 432,43 2002 3.6 7.3 5.43 4.85 1.09 2.61 5.79 119,23 077,33 1002 0.6 8.3 9.43 2.95 8.98 9.61 8.79 852,23 979,23 0002 2.6 1.4 3.63 7.26 5.98 9.61 0.89 879,13 126,23 9991 aemocnI emocnI ytiruceS rehtO erafleW noisneP emocnI tessA laicoS sgninraE emocnI )sdnasuoht( )sdnasuoht( raeY gnivieceR gnivieceR gnivieceR gnivieceR gnivieceR htiW ynA htiw emocnI ynA +56 elpoeP emocnI egatnecreP egatnecreP egatnecreP egatnecreP egatnecreP egatnecreP egatnecreP htiw rebmuN fo rebmuN emocnI emocnI )sdnasuoht( emocnI emocnI )sdnasuoht( emocnI emocnI )sdnasuoht( raeY dlohesuoH dlohesuoH sdlohesuoH dlohesuoH dlohesuoH sdlohesuoH dlohesuoH dlohesuoH sdlohesuoH emocnI naideM naeM fo rebmuN naideM naeM fo rebmuN naideM naeM fo rebmuN b redlO ro 56 esuopS ro redlohesuoH a 56 egA rednU esuopS dna redlohesuoH sdlohesuoH llA sralloD 4002 ni emocnI dlohesuoH launnA naideM dna naeM .3-A elbaT .stnuoccA tcudorP dna emocnI lanoitaN eht fo xednI erutidnepxE noitpmusnoC lanosreP eht ni desab srallod 4002 ot detsujda neeb evah semocnI ".emocni rehto" htiw snoisnep morf emocni dedulcni SPC eht ,yevrus 6791 hcraM eht ot roirP .a .noitalupop lanoitutitsninon ,nailivic eht tneserper ataD .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS 997,4 006,3 006,9 718 993,01 000,51 981,51 781,43 4002 397,4 926,3 691,9 698 925,01 943,61 697,41 977,33 3002 799,3 635,3 647,8 070,1 072,01 716,51 866,41 433,33 2002 008,3 861,3 497,8 485,1 731,01 190,31 517,41 119,23 1002 088,3 742,3 526,8 774,1 309,9 739,21 727,41 852,23 0002 408,3 453,3 903,8 756,1 488,9 194,11 871,51 879,13 9991 440,4 780,3 880,8 586,1 166,9 332,11 347,41 496,13 8991 210,4 798,2 420,8 007,1 815,9 210,11 492,41 104,13 7991 876,3 948,2 796,7 564,1 712,9 034,01 410,41 991,13 6991 446,3 486,2 771,7 015,1 321,9 317,01 209,31 180,13 5991 525,2 278,2 512,7 302,1 269,8 026,9 024,31 676,03 4991 827,2 428,2 253,7 822,1 274,8 775,9 421,31 322,03 3991 661,3 162,2 387,6 705,1 230,8 004,9 639,21 835,03 2991 201,3 386,2 369,6 939,1 781,8 800,9 242,31 652,03 1991 398,2 413,2 199,6 583,2 630,8 507,8 325,31 437,92 0991 656,2 183,2 327,6 943,2 620,8 903,9 603,31 023,92 9891 654,2 805,2 177,6 264,2 469,7 788,8 720,31 747,82 8891 a emocnI rehtO emocnI erafleW emocnI noisneP emocnI tessA ytiruceS laicoS sgninraE emocnI latoT emocnI htiW raeY llA naideM naideM naideM naideM naideM naideM naideM rebmuN emocnI 075,52 664,83 658,22 086,25 247,76 356,38 203,54 064,16 905,601 0002 295,52 499,83 975,22 528,15 460,56 102,28 318,44 644,95 087,401 9991 018,42 439,73 193,22 332,05 547,36 006,18 095,34 781,85 199,301 8991 819,32 536,63 053,22 359,74 367,16 432,08 938,14 982,65 485,201 7991 018,22 243,43 201,22 329,64 748,95 979,87 815,04 072,45 180,101 6991 087,22 101,43 731,22 720,64 822,85 645,77 810,04 078,25 386,99 5991 811,22 880,23 330,22 196,44 310,45 450,77 466,83 831,94 780,99 4991 401,22 169,13 934,12 319,34 658,25 328,57 860,83 052,84 262,79 3991 278,12 394,13 083,12 264,44 416,25 110,57 803,83 929,74 193,69 2991 791,22 728,13 104,12 560,54 168,25 862,47 067,83 651,84 966,59 1991 019,22 371,33 160,12 674,54 916,35 152,37 630,04 350,94 213,49 0991 523,22 160,33 147,02 632,64 158,45 706,27 325,04 900,05 743,39 9891 222,22 067,13 513,02 724,54 627,35 515,27 466,93 819,84 038,29 8891 562,22 094,13 220,02 006,54 573,35 201,17 025,93 765,84 421,19 7891 431,22 905,13 675,91 884,44 023,25 309,96 460,93 767,74 974,98 6891 935,12 707,03 831,91 571,34 247,05 913,96 020,83 704,64 854,88 5891 986,12 958,03 407,81 690,24 677,94 580,86 422,73 007,54 987,68 4891 554,02 337,82 993,81 271,14 506,74 800,76 788,53 045,34 704,58 3891 420,02 878,82 741,81 990,14 305,74 177,56 540,63 674,34 819,38 2891 511,91 105,72 097,71 244,14 862,74 737,56 911,63 850,34 725,38 1891 524,81 424,62 083,71 358,14 932,74 889,46 936,63 748,24 863,28 0891 369,61 604,42 251,51 713,04 882,54 517,75 002,53 549,04 768,27 5791 146,41 303,22 500,31 592,04 689,44 446,15 164,53 324,04 846,46 0791 894,41$ 393,22$ 896,21 872,04$ 688,44$ 766,05 935,53$ 873,04$ 563,36 9691 emocnI emocnI )sdnasuoht( emocnI emocnI )sdnasuoht( emocnI emocnI )sdnasuoht( raeY dlohesuoH dlohesuoH sdlohesuoH dlohesuoH dlohesuoH sdlohesuoH dlohesuoH dlohesuoH sdlohesuoH emocnI naideM naeM fo rebmuN naideM naeM fo rebmuN naideM naeM fo rebmuN b redlO ro 56 esuopS ro redlohesuoH a 56 egA rednU esuopS dna redlohesuoH sdlohesuoH llA .stnuoccA tcudorP dna emocnI lanoitaN eht fo xednI erutidnepxE noitpmusnoC lanosreP eht ni desab srallod 4002 ot detsujda neeb evah semocnI .redlo ro 56 saw esuops s'redlohesuoh ro redlohesuoh eht rehtiE .b .redlo ro 56 erew esuops s'redlohesuoh eht ron redlohesuoh eht rehtieN .a .noitalupop lanoitutitsninon ,nailivic eht tneserper ataD .yevruS noitalupoP tnerruC ot stnemelppus emocni hcraM eht fo sisylana SRC :ecruoS 130,52 865,83 451,42 001,15 873,66 068,78 051,44 183,06 510,211 3002 527,42 860,73 786,32 524,15 534,66 496,78 911,44 091,06 183,111 2002 310,52 871,83 845,32 400,25 218,76 938,58 484,44 334,16 783,901 1002 emocnI emocnI )sdnasuoht( emocnI emocnI )sdnasuoht( emocnI emocnI )sdnasuoht( raeY dlohesuoH dlohesuoH sdlohesuoH dlohesuoH dlohesuoH sdlohesuoH dlohesuoH dlohesuoH sdlohesuoH emocnI naideM naeM fo rebmuN naideM naeM fo rebmuN naideM naeM fo rebmuN b redlO ro 56 esuopS ro redlohesuoH a 56 egA rednU esuopS dna redlohesuoH sdlohesuoH llA Patrick Purcell Debra B. Whitman Specialist in Income Security ppurcell@crs.loc.gov, 7-7571 , ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL33387