Extreme Poverty Increased for Older Americans

Many of the stories about the Census data released last week reported that poverty rates flatlined last year – and it’s true that there were few statistically significant changes. Indeed, the Census didn’t report statistically significant improvements in poverty rates for any demographic groups nationally. But there was one group that that saw statistically significant increases in extreme poverty: Americans 65 and older.

What’s extreme poverty? An income below 50 percent of the federal poverty threshold. That’s just $5,505 for a single person 65 and older.

Who saw a statistically significant increase in extreme poverty between 2011 and 2012?

• Women 65 and older. Their extreme poverty rate increased to 3.1 percent in 2012 from 2.6 percent in 2011.
• Women 65 and older living alone. Their extreme poverty rate increased to 4.7 percent in 2012 from 3.6 percent in 2011.
• Men 65 and older. Their extreme poverty rate increased to 2.3 percent in 2012 from 1.9 percent in 2011.

The fact that poverty rates didn’t worsen for most Americans doesn’t count as good news, since poverty remained at or near record levels. Persistently high poverty (and increasing inequality, which is another whole story) are reason enough to reject the brutal cuts to SNAP (Food Stamps) that passed the House last week, end the sequester, and invest in creating jobs and expanding opportunity. But the increase in extreme poverty among the elderly should send an especially strong message to policy makers that in the upcoming budget negotiations they should take cuts to Social Security off the table—and start working on improving benefits instead.