Study finds high level of inequality among older Massachusetts residents – Center for Retirement Research
In a recent podcast, I talk with Laura D. Quinby of the Center for Retirement Research at Boston College (CRR) and Luc Schuster of Boston References about their study. Wealth gaps in the golden years: Economic insecurity for older adults in a high-cost environment.
They examined economic insecurity among older adults in Massachusetts using a quantitative analysis of CRR seniors and a focus on low-income seniors from the Boston Index.
Details
It’s no surprise that Massachusetts seniors tend to be much wealthier than the national average, but it’s also more spread out than in most categories – The top third hold more than $3.5 million with only $50,000.
Much of the wealth inequality comes from home ownership, as homeowners have benefited from appreciation while renters have not. As a result, “a very large share of households here are earning the income they need to meet the minimum basic age and age in their households with dignity,” Quinby said. Overall, nearly 40 percent of Massachusetts adults do not have enough money to meet basic needs compared to 30 percent nationally.
Racial disparity in particular is a big deal. “So our income, low-income households – black and black and black,” according to Quinby. “When combined with the high cost of living, this means that a very high share of older, black and Hispanic families here are falling short.” [about 9 in 10 compared to 1 in 3 White households]… that’s shocking. “
Low paid leaders are more active
The Boston indicators conducted in-depth interviews, especially with Boston residents who were employed by the benefits they serve. Because of this, it was not a representative sample, but it still paints a picture of low-income seniors. “This idea was based on the findings from Laura’s research, to set up a series of focus groups with a very low impact, very low subset of the elderly … to get a better idea of …[how] They keep you together,” Schuster explained.
Twenty of those 29 participants in the focus groups live in subsidized housing, which serves as an important means of living. “That’s the biggest difference and most of them talked about how important their lifestyle was. They also talked about the importance of other social benefits like SSI and Snap and MassHealth. [the state’s Medicaid program]. “
Depending on the availability of subsidized housing, Boston can be unusual. “Our feeling is that Greater Boston, and especially the city of Boston, has really done more than other major US cities to provide subsidized housing for very low-income families.” But while subsidized housing helps the poorest residents, Schuster said low-income families also need help.
The researchers were surprised to find something: Participants were less trusting of their older children. “Many of the interviewees directly stated that they do everything in their power to avoid asking their older children for financial support because they do not want to be a burden [them]”Reported” said Schuster.
This finding may be because most participants live in subsidized housing. “We’ve been talking to people who are connected to social service providers in Boston. There may be a large number still, low-income, low-income seniors living with their older children.”
Keep working?
We discussed that working longer hours will help low-income seniors who bridge the gap between their resources and their needs. Quinby said “we often tell people that one of the best ways to have a secure retirement is to work as long as possible…
Working longer hours also has other potential benefits. “Research has shown that it helps with your mental health. It helps with your physical health. It helps you maintain your social network.”
Policy recommendations
To help low-income older residents of Massachusetts, Quinby Recommended Passage of Choice, which requires most employers without a retirement plan to use the plan or help their employees Enroll in the State Auto-IRA program. According to Georgetown University, nearly half of private equity workers in Massachusetts do not have access to an employer-sponsored plan. This program will not help the witch of today but it can have a great impact in the future. The plan passed the state legislature earlier this year but was canceled by Governor Maura Healey who sent him to return to study.
Schuster recommended building rental housing near mass transit to allow seniors to downsize while living in their communities. This approach could also free up some single-family homes for smaller families and reduce the cost of home health care if caregivers could care for multiple seniors in one apartment.
For more from Harry Margolis, check out his aging in danger at America Blog and Podcast. He also answers consumer estate planning questions at Askharry.info. To stay current on the low-profile blog, join our free email list.
