Hillier___Barrow_Chapter_9 - Hillier & Barrow Chapter 9...

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Chapter 9 Finances and Lifestyles
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Demographic Projections Over next 40 years, number of elderly will double, number of oldest-old will quintuple In early 1900s, almost all elderly were poor or near poor Social programs (such as Social Security) and pensions have improved financial status Shaky economic times hit elderly especially hard due to lower interest rates
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Financial Status 1 in 6 households of elders had income lower than $15,000 in 2000. 40% had incomes of $37,000 or more. Poverty rates dropped from 24.6% in 1970 to 9.8% in 2000, but 20% of elders are poor or “near poor”. SES, race, ethnicity and gender all combine to predict financial status in old age, especially “triple jeopardy”. Cumulative disadvantage: disadvantage gets more pronounced with age
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Financial Security cont. 13% of older households have no other income than Social Security. 30% rely on Social Security for 4/5 of income. Women, minorities, those living alone and oldest-old make up 90% of elderly poor. Decrease in funding for social programs puts older adults in precarious position.
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Home Ownership Vast majority of Americans save very little for old age, or have other financial assets. Household debt is at an all-time high. 78% of older adults owned their own homes in 1996, but maintenance, high utility costs and property taxes keep home ownership expensive; Home equity conversions and reverse mortgages can provide income for those who want to age in place.
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Mobile Homes Almost half of mobile home residents are over age 50, and 90% own their units. Most live in mobile home parks, many in
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Hillier___Barrow_Chapter_9 - Hillier & Barrow Chapter 9...

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