Ringing alarms about elders' high living costs

The elderly face high costs -- from health care to housing -- and many won't have enough money to pay the bills. Rather than leaving people in the financial shadows, a novel tool developed by the Gerontology Institute at the University of Massachusetts Boston is sparking a revolution to keep aging lively and affordable.

To measure the living costs of people aged 65 and older, the Gerontology Institute developed the Elder Economic Security Standard, a geographically (county-by-county) based tool that helps elders calculate the appropriate income necessary to cover basic costs such as housing, medical expenses, food, transportation and some leisure activities. It is a new and more accurate measure of an independent elder’s income needs.

The standard reveals that many elders can't cover their expenses, and its causing concern around the nation.

In Boston, the median household income of people aged 65 and older is $17,470. The institute calculates that to meet basic living costs, including fair-market rent, transportation, and health care, an elderly couple needs $30,557. By contrast, the average annual Social Security benefit for couples is $19,776, creating a gap for elders without additional savings.

To close the gap, Wider Opportunities for Women has launched an ambitious campaign that includes organizing, advocacy, and research on a national level. With the support of The Atlantic Philanthropies, an organization dedicated to bringing about lasting changes in the lives of disadvantaged and vulnerable people, a total of 20 states will participate. The Gerontology Institute is Wider Opportunities for Women's national research partner to develop and apply the Elder Economic Security Standard.

The impact of the Elder Economic Security Standard has already been felt. In California, Pennsylvania, Illinois, and Wisconsin where Wider Opportunities for Women and the Institute have been working, editorials by major newspapers and features on television are ringing the alarm. Wider Opportunities for Women has compiled the results on a special web site.

In Massachusetts, Governor Deval Patrick has agreed to convene a statewide commission on long-term care and innovative outreach efforts to help seniors overcome their resistance to enrolling in public support programs.

The initiative is particularly critical as we face today’s economy. This year, seniors relying upon Social Security for the majority of their income were forced to choose among such necessities as heating oil, prescription drugs, and food as they received the lowest cost of living adjustment from Social Security yet.

Laura Henze Russell and Ellen Bruce of the Gerontology Institute developed the methodology and format of the Elder Economic Security Standard. They were inspired to ask the difficult question: how much does it really cost for older adults to live independently, taking into account differing factors such as health, life circumstances, family status, and geography; and what happens to their costs as life circumstances change over time?

"We really need a fresh look at the network of support programs for elders, because so many of the guidelines were set so many years ago," said Russell, director of the Elder Economic Security Program at the Gerontology Institute. "One of our hopes is that we're educating seniors that it's not necessarily their fault that they can't makes ends meet," said Bruce.

The Gerontology Institute developed the Elder Economic Security Standard with support from The Boston Foundation.

The Gerontology Institute carries out basic and applied social and economic research on aging and engages in public education on aging policy issues, with an emphasis in four areas: income security, health (including long-term care), productive aging, and basic social and demographic research on aging.