Financial
The poverty rate
In Texas, 12.7 percent of people 65 and older live below the poverty level. The national median income for older adults was $18,778 in 2000. These percentages and dollar figures, however, do not tell the whole story. Income disparities continue to exist between older minorities and older Anglos. Poverty rates among African-American and Hispanic elders are 2.5 times greater than Anglos.
When gender is added to race, the disparities become even more notable. The poverty rate of African-American women age 75 and above is 10 times that of Anglo men between the ages of 65 to 74. Economic security in later years is determined by several factors, including wages, work history, marital status, family responsibilities, pension coverage, financial literacy, discrimination, health insurance, home equity, and access to savings and investments. For example, while the Social Security benefit formula favors lower lifetime earners by replacing a higher percentage of earnings, their low earnings and work histories can leave them with incomes below poverty when they retire or become disabled.
Furthermore, the recent stock market decline has affected the economic security of millions. Falling stock values have hit two groups hardest: those already retired and those nearing retirement with little time to recover from market losses. The Dow has dropped to its lowest point in five years and the technology-heavy NASDAQ is at its lowest level in six years. The 18 percent drop in the Dow Jones Industrial Average and the Standard & Poor's 500 stock index during the third quarter of 2002 were the sharpest since 1987.
Updated: November 2, 2007
