As the gap between the wealthiest working people and the poorest grows, so does the gap between the poorest retirees and wealthiest. More and more older Americans are living their retirement years stuck in poverty. A recent study by the Employee Benefit Research Institute showed that more people that are retired have to go without.
The proportion of retirees living below the national poverty line has been on a steady upswing since 2005. Many of the older people are falling below the poverty line as they live longer and spend most of their savings.
The poverty rates for those aged 65 to 74 increased from just under 8% during 2005 to over 9.4% in 2009. For retirees who are older, between 75 and 84, there was a much steeper increased. The rate went from 7.6% in 2005 to 10.7% in 2009. However, the group most likely to be stuck living in poverty is the oldest group of retirees, those 85 and above. In that group, 14.6% lived in poverty during 2009.
During 2009, 6% of those who lived in poverty in the 85 and older group had just fallen into poverty, up from 4.6% during 2005. One of the biggest causes of people falling below the poverty line during old age is failing health and the medical costs associated with that failing health.
Over 70% of retirees living in poverty have suffered some form of acute health condition such as lung disease, cancer, stroke or heart problems. Only 48% of those living retirees who live above the poverty line have suffered from an acute health condition.
