America’s age tipping point is approaching — we’re totally unprepared

America faces mounting old age challenges as growing numbers of individuals find themselves ill-prepared in terms of financial resources, personal health and social support for their remaining years of life.

The number of Americans aged 65 and older has increased to approximately 56 million, or 17 percent of the population, nearly double the 1960 level of 9 percent.  The majority, about 55 percent, are women, and among those 85 years and older, nearly two-thirds are women.

In 2030, America will experience a demographic turning point when all baby boomers will be older than 65. That will equal one out of five Americans. Also importantly, by 2034, those older than 65 are expected to outnumber children for the first time in U.S. history.

Although COVID-19 reduced life expectancies of older Americans by approximately a year, Americans at age 65 years in 2021 could expect to live an additional 18 years on average — about 17 years for men and 20 years for women. In addition to the sex difference, life expectancies at age 65 vary across America’s racial/ethnic groups, with Asians experiencing the highest at 21 years, followed by Hispanics at 19 years and white Americans at 18 years. The lowest life expectancies at age 65 at slightly more than 16 years are among Native Americans and Blacks. 

With respect to financial resources, the median annual income of older Americans is approximately $28,000 for men and $22,000 for women. Also, nearly 10 percent live below the poverty level. This also varies according to racial/ethnic demographics, with Black and Hispanic Americans having the highest percentages living below the poverty level at 18 and 17 percent, respectively. Asian and White Americans are at approximately half those levels with 9 and 7 percent, respectively.

Despite the widespread desire among Americans for early retirement, the financial resources of most are insufficient. 

According to the U.S. Government Accountability Office (GAO), nearly half of American households headed by someone 55 years and older lack some form of retirement savings. It also reports that close to 30 percent of those who are retired or nearing retirement do not have retirement savings or a defined benefit plan.  

Moreover, according to the Economic Policy Institute, while one-third of white families lack savings in a 401(k) or IRA account, about 60 percent of Black families and 65 percent of Hispanic families lack savings in such an account. Consequently, many older Americans will need to rely primarily on Social Security benefits. 

Some in Congress have suggested increasing Social Security benefits, especially for those with little or no savings for retirement, but others are opposed to raising taxes for increased benefits. 

By age 65, more than half of American workers have retired. While that age permits enrollment in Medicare, full Social Security benefits are not available until age 67 for those born in 1960 or later. Between ages 62 and 67, one may choose to receive Social Security benefits at reduced levels. According to the Social Security Administration, approximately one-third choose to begin their benefits at age 62 and slightly more than another third begin between ages 65 and 66. 

Maintaining good personal health contributes to ensuring independence, security, productivity, quality of life as well as longer life. However, millions of older Americans are struggling with health challenges and growing numbers are in need of caregiving services.

An estimated 80 percent of Americans 65 or older have at least one chronic condition, with about 68 percent having two or more. Those chronic conditions include arthritis, dementia, depression, diabetes, heart disease, high blood pressure, high cholesterol, kidney disease, obstructive pulmonary disease and others.

Also, about two in five older Americans have a disability. The most common are mobility disabilities, in particular, serious difficulty walking or climbing stairs. Falls are the leading cause of fatal and nonfatal injuries and hospitalization among older adults, resulting in hip fractures, head trauma and death. An estimated one out of four older adults falls each year, often requiring emergency room treatment.

Mobility is followed by cognitive disabilities, including dementia. The most common type of dementia is Alzheimer’s, with 10 percent of those older than 65, or more than 6 million Americans, living with the disease, which as of yet has no known cure.

With respect to social support, while 70 percent of men over 65 are married, less than half of women the same age, 48 percent, are in a relationship. Close to one-third of women in the age group are widowed, compared to one-tenth of men. Divorced and separated people over 65 represent about 15 percent of the population, with slightly higher proportions for women. However, the percentage of the divorced and separated has tripled since 1980, when it was only 5 percent.

One-third of women over 65 and one-fifth of men in the same age group live alone. With increasing age, the proportions living alone increase considerably. Among women 75 years and older, for example, 42 percent live alone. 

In theory, the government should be able to relate to the challenges of an aging America. The 117th Congress is the oldest, on average, of any Congress in two decades. The average age of senators is 64 years, with half of them 65 years and older. In the House, the average age is 58 years, with one-third of the representatives 65 years and older. Moreover, both the current and previous presidents were in their seventies when elected to office.

Given America’s demographics, including sustained levels of below replacement fertility and increasing proportions in those over the age of 65, a return to the younger demographic age structures of the recent past is simply not in the cards.  

Rather than sidestepping the growing numbers of older Americans, lawmakers should proactively address today the mounting economic, social, cultural and health challenges of an aging America. 

Joseph Chamie is a consulting demographer, a former director of the United Nations Population Division and the author of numerous publications on population issues, including his recent book, “Births, Deaths, Migrations and Other Important Population Matters.”