Older adults need twice the federal poverty level to make ends meet in California.
New calculations using the Elder Economic Security Standard (TM) Index (Elder Index) for California show that both singles and couples age 65 or older who rent need more than twice the amount established by the Federal Poverty Level (FPL) Guideline to meet basic living expenses. The gap is greater for elders who own their home and are paying a mortgage than for renters. The gap between basic expenses and the FPL is smaller for owners without a mortgage, but still exists. Housing and health care are the primary drivers of the high costs. This policy brief documents that the Elder Index provides a better measure of income adequacy than the FPL for older adults because it accounts for those costs at the county level. The growing number of public and nonprofit organizations using the Elder Index will aid the quality of planning and programs that improve income security for California's rapidly growing older population.
Wallace
Steven P
SP
Padilla-Frausto
D Imelda
DI
Smith
Susan E
SE
D000368:Aged; D002017:Budgets; D002140:California; D003695:Delivery of Health Care / Q000191:economics; D006798:Housing / Q000191:economics; D006801:Humans; D007182:Income; D010067:Ownership / Q000191:economics; D011203:Poverty / Q000145:classification* / Q000706:statistics & numerical data; D012959:Socioeconomic Factors