In September the National Council on Ageing (NCOA) analysed the growing financial crisis that older Americans face, in particular those aged between 60 and older
Although the was a slight increase in incomes and value from 2018-2024, the overall financial landscape remains bad for many. 80% of this demographic lacks sufficient resources to cover long-term care or cope with financial emergencies.
Lack of assets and debt in the lowest income bracket
The key findings of the analysis found that the lowest income bracket, around 15 million households, has no assets and in some cases is in debt.
Their median income is $18,000, meaning 90% of these households are below the financial threshold needed to meet basic living expenses.
Approximately half of older Americans have incomes sufficient to cover their essential needs, as shown by the Elder Index, an online tool that calculates the financial requirements for independent living.
Financial vulnerability for half of older adults
60% of this group can’t afford even two years of in-home long-term services and support. Long-term care costs are a significant burden, with home health alone costing about $75,504 annually and a private room in a nursing home reaching $116,800.
COVID-19 also worsened these issues, leading to job losses and increased financial strain, especially among those who became widowed or lost family members. As a result, many older adults face heightened financial insecurity at a time when they are more likely to require care
Expanding medicare, medicaid, and caregiver assistance programs
Medicare also does not cover long-term services and support, placing a financial burden on older adults and their families. Medicare offers some assistance but only after individuals deplete their assets to a very low threshold. Research indicates that over 20 years, a large percentage of adults ages 50 and above will experience drastic drops in wealth due to unforeseen circumstances, this is particularly pronounced among those 70 and above.
A recent survey showed a large number of people supported the improvement of Medicare and Medicaid to facilitate in home care options, tax breaks for family caregivers and establishment of government programmes to assist with long term care costs.
