Income and Wages

Census Bureau Report: Elderly Incomes Zoom

While the incomes of most American households have languished over the past three decades, elderly incomes have leaped upward dramatically, the Census Bureau reports.

  • The analysis of household income from 1969 to 1996 revealed a 57 percent rise in real median income for married couples over 65 -- dwarfing the 6.3 percent increase for all couples.

  • Elderly people living alone fared even better -- with incomes increasing 63 percent.

  • Median household income for married couples 65 or older was $29,210 in 1996 -- far above the inflation adjusted $18,553 it was in 1969, but below the median for all households of $35,172.

Unlike the 1960s, when the elderly were the most likely portion of the population to live in poverty, most older Americans are now able to live comfortably in their own homes, or in retirement communities or assisted-living facilities.

Why the sudden increase? Higher government transfers through increases in Social Security payments explain much of the change. Other factors include the effect of the G.I. bill that gave many more college educations. Then there was the booming real estate market and the trend toward greater investing. On average, 40 percent of income for the elderly is from pensions, interest and dividends from investments.

The large-scale entry of women into the labor force was also a factor. Without the contributions of wives, the 57 percent rise for elderly married couples would have been only 34 percent.

Source: Barbara Vobejda, "Elderly Lead All in Financial Improvement," Washington Post, September 1, 1998.

For text http://www.census.gov/hhes/www/p23text.html

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