What Does the Economic Downturn Mean for Seniors?
The current economic crisis has dominated the headlines for months now., Here is a sampling of news stories from the past few months that discuss its impact on seniors:
- On September 5, 2008, USA Today discussed a growing issue for older adults in “Bankruptcies Soar for Senior Citizens.”
- “In Sour Economy, Some Scale Back on Medications,” appearing in the October 21, 2008 issue of the New York Times, reported that Americans—especially seniors—are cutting back on prescription medications, endangering their health and often resulting in even higher healthcare costs.
- The November 21, 2008 issue of the New York Times also examined the situation of older adults who are unable to move, in “Unable to Sell Homes, Elderly Forgo Move to Assisted Living.”
As these stories show, seniors who live on a fixed income from retirement accounts and Social Security have been especially hard hit by the economic situation. They have cut back on necessities such as meals, health care appointments and medications.
Baby Boomers and younger seniors also face a sobering situation as they have seen the value of retirement accounts plummet. Many are delaying previously planned retirement, or are leaving retirement to go back to work. A rising number of older adults are staying in their houses rather than making a preferred move to a retirement community, or assisted living, finding themselves unable to sell their homes in today’s market.
Adding to the crisis, lowered tax revenue, budget cuts and soaring operational costs are stretching the resources of the social services and charitable organizations which serve the needs of the most vulnerable seniors.
A Small Silver Lining?
There is a bit of good news on the horizon: economists note that for people on a fixed income, deflation may actually mean a relief in prices. And, in 2009, the Medicare deduction from Social Security will not increase. In addition, Social Security recipients will see a 5.8% increase in the monthly benefit in 2009—the largest increase in some time.
-Adapted from: “What Does the Economic Downturn Mean for Seniors?”, A supplement to the book “Aging in Stride”, http://enews.aginginstride.org/pub.48/issue.987/article.4070/ , retrieved 2/6/09, cited in Aging in Stride News, Feb 2009.
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