APA Format Assignment

Final Assignment: “Examining Financial Hardships in an Aging Population”

GERO XXX

University of Maryland University College

For many older adults who have worked most of their adult lives, there is no greater feeling than nearing retirement. Many of them count down the days until they punch the time clock one last time. Analysis of 401K’s and Social Security benefits are done in advance to ensure a smooth transition to retired life. A large population of Americans, have prepared for life after retirement and are primed to enjoy their “golden days”. On the other hand, an even greater number of older Americans are approaching retirement with sheer terror due to lingering financial issues. This epidemic is indicative of the troubled economic state many citizens are in. While health concerns can be common for the aging population, a growing concern is the economic hardships faced by older adults. This paper will take an honest look at the financial challenges facing an aging population and the implications it has on their overall health and social wellbeing.

Baby Boomer Generation

When discussing Health and Aging, it is impossible to not elaborate on the Baby Boomer Generation. This particular group of people were born during the post-World War 2 Baby boom. According to the U.S. Census Bureau, they “include people who are between 51 and 70 years old in the 21st century” (2010). They are a peculiar group of people who have witnessed history and overcome numerous social issues. Many observers agree that a large portion of these baby boomers are some of the most successful, most active and physically fit older generation of our time. They have become the measuring stick for analyzing health and aging as our population grows. Some may argue that they have become a burden to our already strained health care system but experts can agree that this group is living longer and better than previous generations before them. How then, can this seemingly successful and perseverant generation be knee deep in financial distress that threatens their livelihood and a chance for a happy retirement?

“What Are the Issues?”

For many years America had done a remarkable job in reducing poverty in older citizens. The development of and refining of Social Security had a tremendous effect on millions of aging Americans. Benefits were provided for those who worked and paid into the system as well as those who couldn’t work due to disabilities or chronic illnesses. As the years have passed, the poverty rate for older people has steadily grown. Economic problems plague many Americans due to the political climate we’re facing but the problem is peculiar for older persons with fewer options than their younger counterparts. A study was conducted by AARP in 2008 that revealed disturbing results. Nearly 3.5 million Americans 65 and older are living in poverty. (Baer & Wu, 2008) More than 2 million older people are nearly poor. These facts are a grim reminder of the numerous challenges that the older generation faces. Further analysis shows key factors and characteristics that break down statistics based on gender, race and living arrangements.

In order to fully assess the severity of the situation, one must take into consideration other circumstances that play a role in the financial distress. An interesting observation noted in a Kaiser Family Foundation article states that the poverty rate is higher in women over age 65 than men in the same age group. To be specific “12% of women versus 7% of men” (Cubanski, Casillas & Damico 2015) are living at poverty level. Further research shows that an astounding 23% of women over age 80 versus 14% of men over 80 are living below poverty level. Another aspect is the role race plays in financial problems in older people. AARP’s study revealed that 1/5th or 19% of older African Americans are living in poverty, compared to “6.5% of older whites.” (Baer & Bin Wu 2008) Additionally, many studies have observed a higher prevalence of individuals living alone, being more likely to have financial hardships. While many factors may contribute to financial difficulties in older people, the fact remains that there are significant issues that need to be addressed when it comes to the financial wellbeing of our aging population. The following chart gives us an image of the ongoing trend observed in poverty among older adults.

“How Did We Get Here?”

Since there have been many revelations showing how older people are entrenched in financial problems, the next question that must be asked is how did we get here. Earlier it was stated that this “baby boomer” group is one of the most successful and wealthiest group of our time. On the other hand, because they are living much longer they tend to actually outlive their savings and investments. In other words, despite careful planning and financial discipline, their longevity actually works against them. The National Care Planning Council observes that “along the way to becoming older at age 85 or age 90 or age 95, a number of expenditures have eaten into savings and investments” (Day, 2014)

Other factors also play a role in why seniors may have financial difficulties such as accumulated debt. Many financial experts have found that seniors are more likely to be victims of fraudulent investments and lax credit card criteria. The requirements for credit card for older Americans has been considered liberal at best. Seniors may no longer have the financial literacy or means that is required to maintain a credit balance with soaring interest rates. In addition to this, older people fall prey to financial exploitation by shady maintenance workers or ‘financial practitioners’ offering services that are costly but hardly useful.

Despite Americans living longer and embracing healthier lifestyle choices, the fact remains that inevitably many will face several health issues as they age. Whether it is orthopedic, cardiovascular or cancer sickness, many of these situations may require inpatient hospitalizations. Medicare and secondary insurance supplements are known to reduce the out of pocket expenses for senior patients but they do not totally reduce it. Inpatient coinsurances and deductibles can wreak havoc on their already strained finances. No amount of planning or discipline can prepare for situations like this.

The final factor to discuss regarding why seniors are experiencing financial hardships is their inability to remain a part of the workforce. Even though many minorities remain in the workforce after “age 65” (Baer & Bin Wu, 2008), most older Americans face difficulties maintaining or securing employment. Once many of them realize that their pensions and retirement funds aren’t keeping up with inflation and rising housing costs, attempts to re-enter the workforce are often futile. Whether their skills are outdated or employers are discriminating based on age, full time employment seems no longer an option. These are the kinds of issues that place seniors in a vulnerable financial predicament.

“What Happens if These Issues Are Not Addressed?”

Elderly citizens already face a number of health and social challenges. Adding financial hardships can exacerbate their naturally declining health. Cooper & Gould’s 2013 article published in Economic Policy Institute, discusses how “people age 80 and older—have a far higher rate of economic vulnerability (58.1 percent) than people age 65 to 79 (44.4 percent)”. Many experts agree that financial problems could cause older patients to postpone routine care and procedures that could extend their quality of life. When the choice becomes paying housing costs versus an elective hip replacement, many will prioritize by choosing their livelihood over an expensive surgery. The long term negative consequences if swift action isn’t taken could prove detrimental for future generations. These are just a few of issues that must be addressed by politicians and health care decision makers in the years going forward.

Conclusion

The value that older Americans have on our society is immeasurable. They have endured many political and social climate changes and have tarried on to support our future. While many Americans have endured financial troubles since 9/11, seniors seem to be disproportionately affected with fewer solutions than their younger counterparts. True they have weathered the storms of World Wars, The Civil Rights Movement and terrorism just to name a few, the battle that they face with regards to their economic sustainability is a very real threat. The good news is that this generation is optimistic, perseverant and full of hope. If there is any generation that can overcome this economic uncertainty, then surely it is them. It is our civic duty as a younger generation to identify preventable financial hardships they face, as well as create an environment where they are able to enjoy their “golden years” without unnecessary duress and mounting debt.

Reference List

Aging Parents & Active Seniors: Health & Wellness Services and Planning. (2015). New Orleans Magazine, 50(2), 145.

Baker, D. (2015, January). America's elders--aging in prosperity or poverty?. Aging Today. pp. 7-7 1p.

Bielderman, A., Schout, G., de Greef, M., & van der Schans, C. (2015). Understanding how older adults living in deprived neighbourhoods address ageing issues. British Journal Of Community Nursing, 20(8), 394-399

Bruyère, S. M., Harley, D. A., Kampfe, C. M., & Wadsworth, J. S. (2016). Key concepts and techniques for an aging workforce. In I. Marini, M. A. Stebnicki, I. Marini, M. A. Stebnicki (Eds.) , The professional counselor's desk reference (2nd ed.) (pp. 291-295). New York, NY, US: Springer Publishing Co.

Dew, J., & Yorgason, J. (2010). Economic pressure and marital conflict in retirement-aged couples. Journal Of Family Issues, 31(2), 164-188.