1009-1-1 ERRATA AMERICA IN TRANSITION: AN AGING SOCIETY 1984-85 EDITION The contents page of the above Committee Print of the Senate numbers beginning with Chapter 2. The correct page numbers are: Chapter 2. Geographic Distribution and Mobility A. States... B. Suburbs.. D. Mobility E. Countermigration Chapter 3. Economic Status. A. Median Cash Income B. Poverty Status.. C. Age and Income G. Trends, 1974-83. H. Composition of Income... I. Trends in Composition of Income. J. Noncash Resources Chapter 4. Retirement Trends and Labor Force Participation. A. Lifetime Distribution of Education, Work, and Retirement.. Page V4. Aa 4:5. prt. 99-55 /errata UNIV. of MICH. SEP 2 7 1985 Documents Center UNIVERSITY OF MICHIGAN SEP 27 1985 DEPOSITED BY UNITED STATES OF AMERICA AMERICA IN TRANSITION: AN AGING SOCIETY 1984-85 EDITION Introduction America is growing older. One of the most significant demographic facts affecting America's present and future course is the aging of its population. The proportion and number of persons 65 years and older has grown and will continue to grow more rapidly than other age groups. A quick overview of this surge in the older population highlights such facts as: Growth: -In 1900, one in ten Americans was age 55 and over and one in 25 was age 65 and over. By 1984, one in five was at least 55 years old and one in nine was at least 65. -The older population grew twice as fast as the rest of the population in the last two decades. -The median age of the U.S. population is projected to rise from 31 today to 36 by the year 2000. -The 85-plus population is growing especially rapidly. This "very-old" population is expected to increase fivefold by the middle of the next century. -The elderly population is growing older. In 1980, 39 percent of the elderly population was age 75 and older. By the year 2000, half of the elderly population is projected to be 75-plus. -Elderly women now outnumber elderly men three to two. This disparity is even higher at age 85 and older, when there are only 40 men for every 100 women. -The ratio of elderly persons to persons of working age has grown from 7 elderly per 100 persons age 18 to 64 in 1900 to 19 per 100 today. By 2010, there are expected to be 22 elderly persons per 100 of working age and by 2050, 38 per 100. -Life expectancy at birth improved dramatically over the last century. People born today have a life expectancy 26 years longer than those born in 1900. -Improvement in life expectancy is particularly dramatic for women. In 1983, life expectancy at birth for women was 78.3 years, while for men it was 71.0 years. -The number and proportion of older veterans is increasing. By the year 2000, close to two-thirds of all 65-plus males will be veterans, compared to one-fourth today. -Aging is an international phenomenon. The number of persons 60-plus in the world is expected to increase from 376 million in 1980 to 1.1 billion in 2025. Geographic distribution: -Over half of the elderly live in just eight States: California, -In 1980, for the first time, more elderly lived in the suburbs -On average, older persons change residences half as often as younger persons, but those who move out-of-State tend to move to the sunbelt. -The number of Americans who are age 60 or older moving to the sunbelt has nearly doubled since 1950. -A new trend, called "countermigration," has emerged in which some 60-plus persons who migrated to the sunbelt in their early retirement years return to their home States or the homes of family and friends. Economic status: -Older persons have substantially less cash incomes than those under 65. In 1983, the median family income of a family head age 65 or older was less than two-thirds the median income of a family head aged 25 to 64. -Elderly persons are more likely than other adults to be poor. (However, when children are also considered, elderly poverty rates are slightly below poverty rates for the rest of the population.) In 1983, 14.1 percent of persons 65 and older had incomes below the poverty level, compared to 12.1 percent of those age 18 to 64 and 15.4 percent of all persons under age 65. -The old-old (85 years of age or older) have significantly lower money incomes than the young-old (65 to 74 years of age). In 1983, the median cash income of couples aged 85 and over ($11,988) was less than three-quarters the median cash income of couples aged 65 to 74 ($17,798). -In 1983, the median income of elderly women was slightly more than half the median income of elderly men, $5,599 versus $9,766. Nearly three-quarters of the elderly poor population are women. -Nonwhite elderly individuals have substantially lower money incomes than their white counterparts. For instance, among those age 65 to 69, white males had a median income of $12,180 compared to a median of $7,097 for black men and $6,551 for hispanic men. -The elderly rely heavily on Social Security benefits and asset income. In 1982, 39 percent of all income received by aged units came from Social Security and 25 percent came from assets income. -While Social Security and assets have grown in recent decades as a source of income for the elderly, earnings has become less important. Between 1968 and 1983, the share of income for elderly families provided by Social Security grew from 23.9 to 34.3 percent of income and the share provided by asset income from 14.6 to 20.9 percent. At the same time, the share contributed by earnings fell from 48.2 to 28. Retirement trends and labor force participation: -In this century, retirement has become an expected part of an individual's life course. In 1900, the average male spent 3 percent of his life time in retirement. In 1980, he was spending one-fifth of his life in retirement. -Age 65 is commonly thought of as the "normal" retirement age. However, almost two-thirds of older workers retire before age 65. -The labor force participation of men and women drops rapidly with increasing age. For instance, according to labor force statistics for the third quarter of 1984, 47.7 percent of 62- to 64year-old men were in the labor force compared to 24.7 percent of 65- to 69-year-old men, and 11.6 percent of those age 70-plus. -In 1984, almost three-quarters of 65-plus workers were in white collar occupations. -Three-quarters of the labor force would prefer to continue some kind of part-time work after retirement. In the third quarter of 1984, of the elderly who were at work in nonagricultural industries, 45 percent of the men and 60 percent of the women were on part-time schedules. -For those elderly who desire to work, unemployment creates serious problems. Older workers who lose their jobs stay unemployed longer than younger workers, suffer a greater earnings loss, and are more likely to give up looking for another job. Health status and health services utilization: -Contrary to stereotype, most older persons view their health positively. Even if they have a chronic illness, four out of five elderly describe their health as good or excellent compared to others their own age. -One out of five elderly have at least a mild degree of disability. -Over half of the oldest-old have no physical disability, but the chance of becoming disabled increases with age. -Cross-sectional data has shown that the likelihood of having a chronic illness increases with age. More than four out of five persons 65 and over have at least one chronic condition and multiple conditions are commonplace in the elderly. -Many psychiatric problems are not as common for older persons as for younger persons. However, the primary health problem of older age is cognitive impairment (which can be related to a number of sources, including Alzheimer's disease). A recent study has shown that 14 percent of the elderly have at least a mild form of cognitive impairment. -Three out of four elderly die from heart disease, cancer, or stroke. Though heart disease has been declining, it remains the major cause of death today. -Death rates, a statistical measure of the frequency of deaths in the population, reached an all-time low in 1983. -"Informal supports," the help of friends, spouses and other relatives, provide valuable assistance to the elderly in the com |