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Money Income Sources for Persons Aged 65 and Over, December 1955

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Money Income Sources for Persons Aged 65 and Over, December 1955 the number aged 65 and over who had some earnings from their own em- A&es and Brief Reports ployment in December 1955 was up marily dependent on public assistance to about 800,000, approximately 200,- Money Income Sources for 000 higher than in December 1950. It Persons Aged 65 and Over, or on relatives and friends. While the increase in the total is estimated that on both dates some December 1955* aged population of the continental 900,000 aged women not themselves Protection against the economic United States between December 1950 employed were supported in whole or ha”zard of old age has developed rap- and December 1955 amounted to 0.7 part by their husband’s earnings. idly in recent years. Between Decem- million for men and 1.1 million for The number of beneficiaries of the ber 1950 and December 1955 the pro- women, the number of aged men re- “other” social insurance programs in- portion of all aged men in the United ceiving old-age and survivors insur- creased about three-fifths-a rate States with income from employment ance benefits increased 1.7 million to of increase much less rapid than or social insurance increased by one- 3.2 million, and the number of aged that in old-age and survivors insur- fourth to 88 percent. For aged wom- women beneficiaries rose 1.9 million ance - but the estimated number en, an increase of almost one-half to 3.0 million. During the same 5- receiving old-age and survivors in- surance and other benefits concur- brought to 65 percent the proportion year period the total number of aged rently nearly tripled and at the end with income from employment (their men with any money earnings re- own or their husband’s) or social in- mained constant at 2.4 million, This of the period probably exceeded 350,- 000. Data compiled by the Veterans surance, or both. The rapid expan- stability reflected the long-term sion of the old-age and survivors in- downward trend in the labor-force Administration for the President’s surance rolls has, of course, been pri- participation rate of aged men. More- Commission on Veterans’ Pensions marily responsible for these gains over, for an increasing proportion of indicate that in 1954 nearly half the and for an accompanying reduction these men, employment was a supple- aged veterans of World War I and in the proportion of aged persons pri- mentary rather than the primary later wars who were on the pension source of income. The labor-force rolls were also receiving old-age and * Prepared by Lenore A. Epstein, Division This participation of all women over age survivors insurance benefits. of Research and statistics. OfFice of Com- finding is of particular significance missioner. 35 has been increasing, however, and because one-tenth of all men aged 65 and over are veterans, and the pro- Table L-Estimated number of persons aged 65 and over receiving money portion is expected to more than dou- income from specified sources, by sex, December 19551 ble in the next 5 years.l Current esti- - mates of the numbers receiving old- Number of persons age and survivors insurance benefits (in 7nflliOns) I Percentage distribution 3 and retirement pay as former rail- Source Of money income 2 - I road or government employees are I 7 Total Total Mell FVomen -- less reliable because they are projec- Total aged 85 and over __________________ 14.3 6.6 7.7 loo. 0 II-AI. 0 100.0 ted from data from the survey of old- _- .- age and survivors insurance benefl- Employment _______________________________- 4.1 28.6 35.7 Earners.. __________________r______________ 3.2 ‘2 22.0 35.7 J: ciaries made 5 years ago. Earners’ wives not themselves employed- - _ _- - __ _. 12: 2 Social insurance and related programs (- _ _ _ _ 7:: 3:; 53:: 59.1 47.8 Employer-employee pension plans Oldage and survivors insurance __________ 6.2 3.0 43.3 48.6 38.8 Railroad retirement insurance __________.. .5 .2 3.5 3.9 3.1 have been growing rapidly. The In- Government employees’ retirement pro- stitute of Life Insurance recently re- grams ___________ _______ __________ _____ .5 .2 3.2 4.1 2.4 Veterans’ compensation and pension pro- ported that the number of insured gramS .________-____-___ _-____-___--___ .6 .2 4.2 5.8 2.8 Benetlciaries’ wives not in direct receiot plans in force with the life insurance of benefits ________________._________I-. 1.4 __ __ __ _ _ 2.6 companies of the country has nearly Public assistance 6____ -- ___________________ 2:: 1:: 17.8 15.0 20.1 No money income or income solely from doubled in the past 5 years. Self- othersouroes....-----.-.--.----------- 1.6 1.4 11.4 3.2 18.4 insured plans have also increased. Income from more than one of specified sources. _____________ .________ _ _________ 1.5 .6 10.8 13.0 8.7 Most of the pension plans are of re- Employment and social insurance or as- cent origin, and so they are paying sistsnCe.-.-.---.-.--.---.------------- 1.0 Social insurance and public assistance.--.- .5 :i 3’:: 2: El out relatively little in retirement ben- - - efits as yet. Since the great majority 1 Persons with income from sources specified may cause of the availability of some new data and a slight of private pensioners are also receiv- also have received money income from other sources, change in methodolo such as interest, dividends, private pensions or an- 8 Percentages c&u P ted from unrounded figures. ing old-age and survivors insurance nuities, or cash contributions from relatives. 4 Persons with income from more thanone type of 1 The sum of the persons shown under the 4 cate- program are counted only onc& benefits, the significance of these gories exceeds the number in the population by the 6 Old-age assistance recipients and persons aged 65 plans is not in how many they add to estimated number with income from more than 1 of and over receiving aid to the blind. Includes small the 3 main sources. The estimates of persons with number receiving vendor payments for medical care the number with assured retirement income from more than 1 source, developed from sur- but no direct cash payment. vey data, are subject to sampling variability (which Source: Estimated in the Division of Research and 1 A Report to the President by the Presi- may be relatively large for the smaller estimates) Statistics on the basis of published and unpublished and to such errors as may result from attempts to data from the Bureau of the Census and agencies ad- dent’s Commlsslon on Veterans’ Pensions, adjust for developments since the sample surveys ministering income-maintenance programs. Veterans’ Benefits in the United States,Aprl were conducted. They are not entirely consistent with those previously published in the BuZZdin be- 1955, p. 362. Bulletin, June 1956 15 income but rather in how much they Table 2.-Comparison of estimated since 1948 in the proportion of old- add to the retirement incomes of per- number of men and women aged 65 age assistance recipients who are in- and over receiving money income sons receiving both types of payment. from specified sources, December surance beneilciaries. Such persons probably represented 1955 and December 19501 The estimated number of aged per- about one-seventh of the retired [Continental United Hates; numbers in million sl sons without money income or with workers and wives receiving old-age income solely from sources other and survivors insurance benefits at I Men women than employment or a public-income the end of 1955. I- - ~- maintenance program dropped from Per- The number of old-age and surviv- cent-‘w- “b? cent- about 3.1 million at the end of i950 ors insurance beneficiaries with some we - age to some 1.6 million in December 1955. cl rmge, ~me, earned income as of December 1955 1955 1956 Such persons live on income from in- 0 from 1966 195 from is estimated at roughly 700,000, com- 1950 1950 vestments, savings, or proceeds of pared with barely 300,000 in Decem- -- --- private insurance policies, rely ‘on Total _______ t-13 7.7 6.6 +17 ber 1950. The margin of error in the -- --- relatives or friends for support, or estimate for December 1955 is con- _. _- - - - - 1.7 1.5 +17 live in public institutions and have siderable, however, because sufficient no income from public income-main- information is not yet available on +lCnl 3.7 1.6 tenance programs. In December 1955, +;;; 3:; 1.1 $% the effect that the liberalization of ..5 +.V about seven-eighths of them were the retirement test in the Social Se- -15 1.5 1.6 -5 women, and probably more than curity Act has had on the labor-force three-fourths of these women were participation of beneficiaries. More- widows. over, until reports by beneficiaries on -76 1.4 2.2 -36 1955 earnings have been processed, it - will not be known how many persons 1 For items included in each category, definitions, Old-Age Benefits in and source, see table 1. Percentage changesicom- receiving benefits in December should puted from unrounded figures. Current-Payment Status, have had those benefits suspended December 31, 1955 (and will therefore lose benefits in in December 1950 to 3.5 per 100 in Old-age benefits under the old-age 1956) or how many benefits that were December 1955. Just before the pres- and survivors insurance program withheld in December should in fact ent retirement test became effective, were being paid on December 31, have been in current-payment status in December 1954, benefits were with- 1955, to almost 4.5 million persons- then.
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