Aging and the Elderly - Poverty

Aging and the Elderly SOCI 1306 Poverty Growing older used to entail living on less money for a lot of individuals in the US. About thirty-five percent of the elderly lived in poverty in 1960. The oldest people in the country were most at danger of poverty a generation ago. That tendency was beginning to reverse at the beginning of the twenty-first century due to the ageing population. The poverty rate among those over 65 dropped from 30% in 1967 to 9.7% in 2008, which is much lower than the 13.2% national average (U.S. Census Bureau 2009). But how are the elderly affected, considering the ensuing recession that drastically decreased many people's retirement funds while placing a strain on public support systems? By 2010, 14% of senior citizens nationwide were living in poverty, according to the Kaiser Commission on Medicaid and the Uninsured (Urban Institute and Kaiser Commission 2010). The considerable decline in elder poverty prior to the start of the crisis was caused by a number of causes. The rise in women's employment over a number of decades was one significant societal trend. Due to this change, a greater number of married couples were able to receive two salaries during their working years, which increased their retirement savings. In a couple where both members were earning a living, there was more room for long-term savings and financial security. Better retirement plans, such 401(k) plans and pensions, were also made available by governments and private companies, giving retirees a stronger financial base. According to U.S. Census Bureau data (2009), by 1990, the average income of senior residents had increased by 36% from 1980 levels. This was five times more than the growth rate seen by those under the age of thirty-five. The development of healthcare also significantly contributed to the decline in elder poverty. More individuals had access to higher-quality healthcare, which enhanced their general wellbeing and length of life. People were urged to adopt healthier lifestyles by new trends that prioritised diet and exercise. Additionally, there was easier access to information on the dangers of drug and alcohol abuse, as well as smoking cigarettes. Because of this, older people were frequently in better condition and could work past the normal retirement age, giving them additional chances to save savings for retirement and ensure their financial security. These tendencies were further reinforced by the economic stability of the 1980s and 1990s. The stock market expanded significantly during this time, helping people who had retirement accounts and investments. An increased sense of financial stability was experienced by many older Americans as a result of their retirement assets growing significantly. A robust economy, enhanced healthcare, better retirement plans, and double incomes all contributed to a more conducive climate for lowering elder poverty. But older Americans' financial security was severely impacted by the recession that started in the late 2000s. Older adults lost some of the financial advantages they had accrued during earlier decades during the crisis. Over fifty-year-olds' retirement account assets decreased by 18% between October 2007 and October 2009. Many people were also forced to postpone their retirement since their funds could no longer sustain them throughout their years of unemployment as a result of the stock market's steep collapse (Administration on Ageing 2009). This economic slump exposed the susceptibility of retirement assets to market swings and undid some of the gains achieved in decreasing elder poverty. The recession had a major direct impact on poverty among the elderly. Due to their diminished savings and postponed retirements, a large number of elderly people found themselves having financial difficulties. Public assistance programmes like Social Security and Medicare, which were already feeling the strain of an ageing population, were also negatively impacted by the crisis. Concerns over the long-term viability of these programmes were raised by the rising demand for these services, which further put a pressure on government finances. Sociologists and economists kept a tight eye on the issue when the economy started to improve, wondering if the trends that had helped to lower senior poverty in the past would reappear. There was optimism that older Americans would once more be able to accumulate retirement funds and safeguard their financial futures as the stock market recovered and economic stability increased. Still, there were doubts about the recession's long-term effects and the durability of the variables that had earlier reduced the rates of elderly poverty. Meanwhile, the recessionary experience highlighted the need of financial planning and the requirement for laws to protect older Americans' financial stability. The stock market's volatility brought to light the dangers of significantly depending on equities to fund retirement. It also underlined the necessity of approaching retirement planning from a variety of angles, including social safety nets, employer-sponsored retirement plans, and personal savings. In addition, the recession raised questions about how well-suited the public assistance programmes are for the elderly. The elderly's poverty rate increased to 14% by 2010, which prompted a renewed emphasis on the function of government programmes in serving as a safety net for marginalised groups. Reforms to improve Social Security, Medicare, and other programmes that assist older Americans with their financial and medical requirements have been demanded by lawmakers and campaigners. In the future, it will be difficult to make sure that the gains achieved in lowering elder poverty are maintained as well as restored. This calls for a multifaceted strategy that takes into account the ageing population's social, medical, and economic demands. Important elements of this endeavour include promoting laws that encourage older persons to enter the employment, expanding healthcare access, and boosting financial planning and literacy. In conclusion, the late 2000s recession represented a major setback, despite the fact that much progress was achieved in the decades preceding the twenty-first century to reduce senior poverty. A robust economy, stronger retirement plans, enhanced healthcare, and a higher rate of employment participation have all contributed to the decline in elder poverty in the United States. The economic collapse, however, made these achievements vulnerable and emphasised the necessity of strong support networks and thorough financial preparation. Building on the lessons learnt from the crisis is crucial to ensuring the long-term financial stability and well-being of the ageing population as the country continues to recover.