Reaching one’s sixties is a different experience for each person. While many people manage to get all their ducks in order, so they are confident they can survive without a steady paycheck, a significant number of other people can expect to live below the poverty line in their “golden years.” We live in a different time than just a few decades ago. Most employees no longer have the same options as before when it comes to pensions, while some can utilize other instruments like 401(k) accounts. According to CNN Money:
“The percentage of workers in the private sector whose only retirement account is a defined benefit pension plan is now 4%, down from 60% in the early 1980s. About 14% of companies offer a combination of both types.”
Between Social Security, Supplemental Security Income (SSI), and 401(k)s, hopefully, it will be enough for people; unfortunately, the data says otherwise with millions of retirees.
Many Seniors Living In Poverty
The Kaiser Family Foundation conducted an analysis of available research on senior poverty rates. There are some 49.3 million seniors in the United States. The study indicates that half of all people on Medicare had incomes less than $26,200 in 2016. When looking at poverty data, it’s important to understand that there are two measures of poverty in America, the official poverty measure and the Supplemental Poverty Measure (SPM). The latter takes into consideration many variables, such as liabilities, including taxes, social welfare benefits, out-of-pocket medical spending, and housing costs.
Relying on the official poverty measure to determine the poverty rates among seniors paints one picture, using the SPM paints an entirely different picture. The foundation found that 4.6 million (9.3%) seniors fell under the official poverty measure in 2016. Using the SPM as a guide reveals that during the same years 7.1 million adults ages 65 and older lived in poverty, and almost 21 million seniors had incomes below 200% of poverty under the SPM. At least 15% of people ages 65 and older lived in poverty in CA in 2016, under the SPM.
SSDI and SSDI Attorney
If the SSA didn’t approve your application for Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), The Driscoll Law Corporation can help. Attorney Stephanie Merritt Driscoll can help you or a loved one appeal the SSA’s decision and get the benefits you require. Please contact our office today.
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