Living beyond your available resources and slipping into poverty is a growing problem for senior citizens of today. This information comes for a recently released report from the Heller School’s Institute on Asses and Social Policy along with the public policy research and advocacy organization, Demos.
According to researchers, the situations could continue to deteriorate if the much talked about cuts are made to Social Security.
In as little as four years, the number of seniors in danger of outliving their available resources went up by as much as two million households. According to the Senior Financial Stability Index, financial uncertainty among seniors went up from 27% in 2004 to 36% in 2008. Such a dramatic and steady increase was in play prior to the onset of the current recession.
Affected By The Recession
Although the recession affects all demographic groups, the financial stability of seniors has gone down more than any other group. Not only is one out of three seniors financially insecure, but also forty percent of seniors are economically vulnerable. Therefore, somewhere around seventy-five percent of seniors have little or no buffer to protect against financial ruin if a traumatic life event or severe illness should strike.
Hardest hit are seniors of color or single women, fifty percent of which fall into the category of financial insecurity. Many are finding it difficult to pay for even the most rudimentary needs.
Research director for the Institute on Assets and Social Policy, as well as co-author of the recent report, Tatjana Meschede said, “It’s simply a crime that in our wealthy and vibrant nation 36 percent of seniors live in a state of uncertainty – unsure of whether they can afford basic necessities.”
She also said, “Instead of working to fix this crisis, the debate in Washington is dominated by those who argue that the only way to reduce the deficit is by dramatically altering Medicare and Social Security.”
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