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Selected Sources of Money Income for Aged Persons, June 1959

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Selected Sources of Money Income for Aged Persons, June 1959 of course, most common, but veter- ans’ preference provisions of many Notes and Brief Reports civil-service systems mean that a Selected Sources of Money major support and 700,000 to supple- large proportion of retired govern- ment retirement or survivor benefits ment employees are likely to receive Income for Aged Persons, insufficient for their needs-and some veterans’ payments also. In addition, June 1959* of those who were dependent on chil- many Federal Government employees Substantially all aged men and 7 dren or private charity or supported have outside employment as well and in 8 aged women in the United States in a public institution. build up rights to old-age, survivors, had some cash income from emPlOY- The veterans’ programs and the re- and disability insurance benefits, and ment or a public income -mainte- tirement programs for railroad and many State and local government nance program in mid-1959 (table 1). government employees together pro- employees have dual coverage. A check for old-age, survivors, and vided income for about 1.8 million Private pensions under insured and disability insurance benefits went to persons who were not receiving old- noninsured group plans were paid to 68 percent of the men and 58 percent age, survivors, and disability insur- a not inconsiderable number of per- of the women aged 65 and over-g3/ ance and 1.1 million who were. Of sons aged 65 and over, an estimated million aged persons in all. In addi- the total of 2.9 million, about one- 11/amillion at the end of 1958-about tion, there were 1.4 million persons fifth had some earnings and about 6 i/4 million higher than the number a who could have drawn benefits except percent received both a veteran’s year earlier. Probably more than 1 for employment-about 1.1 million payment and a benefit under a re- million of these pensioners were old- insured workers and about 300,000 tirement program for railroad work- age, survivors, and disability insur- married women whose husbands had ers or Federal, State, or local govern- ance beneficiaries. not yet retired. ment employees, so that the undupli- In addition, at the start of 1959, Roughly 2 million of the benefici- cated total was less than 2.8 million. according to a special study con- aries are estimated to have had some Most veterans, for example, are likely ducted by the Institute of Life Insur- earned income as workers or wives of to earn insured status under a retire- ance,l there were 374,000 individual workers. Some of them were exempt ment program by virtue of their em- from the operation of the retirement ployment. Coverage under old-age, 1 See The Tally of Life Insurance Sta- test under old-age, survivors, and dis- survivors, and disability insurance is, tistics, September1959. ability insurance because they had reached age 72. Many beneficiaries Table l.-Estimated number of persons aged 65 and over in the United States with earnings, however, had only receiving money income from specified sources, by sex, June 1959 1 part-time or intermittent employ- ment. Of all aged persons with work Number (in thousands) Percentage distribution experience during 1958, only 2 in 5 Source of money income 1 worked at full-time jobs for at least Total 48 weeks during the year (table 2). 1. Population aged 65 and over, total ___________________ 15,520 7,030 8.490 160.0 100.0 100.0 About 3 million aged persons had 2. Employrnent.-...--.----------..-.-----------------. 3,920 2,2w 1,660 25.2 32.1 19.6 paid jobs in June 1959, and an esti- Earners..~~----.~.~..~~~~.-.---.~~~~~~~~~~-.-~--~. 3,030 2,260 770 19.5 32.1 9.1 Nonworkingwivesofearners...--.---------..----. 890 . __ _. 890 5.7 ______._ 10.5 mated 900,000 women not themselves 3. Social insurance and related programs J._____ _. .-_-__ 11,390 5,600 5,790 73.4 79.7 68.2 Old-age, survivors, and disability insurance------. 9,720 4,800 4,920 “E 68.3 58.0 at work were married to men with Railroad retirement program..... ._________ --- ____ 610 310 300 kl 3.5 paid employment. Of this 3.9 million Qovernment employees’ retirement programs...-.. 930 460 470 6.0 5.5 Veterans’ compensation and pensions ________ _____ 1,390 790 600 9.0 11:2 7.1 with income from employment, it is 4. Public assistance 4. ..________ --- . .._________...___. 2,480 950 1,530 16.0 13.5 18.0 5. No money income or income solely from other sources. 1,090 50 1,040 7.0 .7 12.2 estimated that more than two-thirds __---__ received some support from a public 6. Income from more than one of sources in lines 2-4--. 3,360 OASDI and employment 5__._________._..________ 1,980 XE 1,530970 21.612.8 26.014.3 18.011.4 income-maintenance program - if Other programs and employment 5___.....________ ‘420 4.3 6.0 3.1 Old-age assistance and OASDI.-- . ..___________ Eli 380 % 4.2 5.4 3.3 not old-age, survivors, and disability Other assistance and OASDI or related programs-. 40 20 29 .3 .3 .2 insurance, then another retirement I I I I Program or the pension and compen- * Data relate to the continental United States, employees and veterans are not entirely consistent sation programs for veterans. The to Alaska and Hawaii, and to Puerto Rico and the with those published previously because of the Virgin Islands. Persons with income from sources availability of new data. Estimates of women others, most of whom were eligible to specified may also have received money income with benefits under these programs include the from other sources, such as interest, dividends, estimated number of beneficiaries’ wives not in draw benefits when they retired, in- private pensions or annuities, or cash contributions direct receipt of benefits. from relatives. 4 Old-age assistance recipients and persons aged clude the bulk of the most favorably 2 Because persons frequently have income from 65 and over receiving aid to the blind or to the situated among the aged. more than one of the sources specified, the sum of permanently and totally disabled; includes a small persons shown on lines 2-5 exceeds the total number number receiving vendor payments for medioal At the other extreme are the aged in the population (line 1). The estimates of persons carebut no direct cash payment. with income from more than one source are devel- 6 Excludes a small number with income from Persons who were dependent on pub- oped from survey data and are therefore subject employment and OASDI and also a related program; lic assistance-1.7 million for their to sampling and reporting errors, as well as the the flgurea on line 3 have already been adjusted for error inherent in projecting survey tidings to overlap among the Insurance and related programs. -- additional population groups and different dates, Source: Estimated in the Division of Program errors that are relatively more significantfor small Research on the basis of published and unpublished * Prepared by Lenore A. Epstein, Divi- estimates. data from the Bureau of the Census, the Bureau of 8 Persons with income from more than one of the Labor Statistics, and agencies administering in- sion of Program Research, ORice of the programs listed are counted only once. Estimates Commissioner. of beneficiaries under programs for government come-maintenance programs. Bulletin, December 1959 13 .annuities and 18 1,O 0 0 annuities which the beneficiary did not pay Table 2.-Estimated number of per- elected as settlements under life in- was an item for 1 in 9 of the couples sons aged 65 and over in the conti- nental United States who worked in surance policies paying income to and 1 in 6 of the others. No informa- 1958, by extent of employment and persons aged 65 and over. No infor- tion was collected on the amount of by sex and age mation is available on the other types noncash income received. r [Soninstitutional population; in thousands] of income received by these annui- Monthly benefit payments under 1 tants. Only 1 to 2 percent of the aged the old-age, survivors, and disability I Persons aged 65 and over beneficiaries covered in the 1957 sur- insurance and railroad programs I with work experience vey of old-age and survivors insur- were up from $7.3 billion in 1958 to Total -- num- Part-time ance beneficiaries - generally those an annual rate of $8.4 billion by June ber Full-time sex aged jobs 1 jobs 3 who also had asset income in the 1959. The rise resulted in part from and age 65 Any form of interest, dividends, or rents- the steady increase in the number of :zet work ’ reported receipt of such annuities. beneficiaries but even more from the An owned home is, of course, an increase of about 7 percent in old- important resource of aged persons. age, survivors, and disability insur- According to the latest Survey of ance benefits, effective January 1959, Total.. 14,870 4,090 1,670 Consumer Finances, 66 percent of all and the lo-percent increase in rail- Men..--. 6.750 2,930 1,310 65-69 ___..__ 2,640 1,6M nonfarm families with head aged 65 road retirement benefits, effective in 70andover., 4,llOj 1,310 and over owned their homes early in June. Public assistance to the aged 1959.2 increased also, from $1.7 billion to an The extent of home ownerership annual rate of almost $1.9 billion, partly as a result of changes made by among old-age and survivors insur- 1 Work at any time during the year on part-time ance beneficiaries and its relation to the 1958 amendments to the Social or full-time basis.
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