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Economic Status of Aged Persons, June 1954

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Economic Status of Aged Persons, June 1954 ment employees and the income re- striction on veterans’ pensions has Note3 and Briej Reports been as high as $1,400 a Year for a Economic Status of Aged ferring employment to retirement single person and $2,700 for a mar- benefits, represented more than half ried man. The number of old-age Persons, June 1954 * the 2.6 million earners aged 65 and and survivors insurance beneficiaries In mid-1954. 70 percent of all per- over who were not receiving retire- with some earnings will doubtless in- sons 65 years of age and over in the ment benefits under old-age and sur- crease beginning in 1955, when the continental United States had income vivors insurance at the end of June liberalized retirement test Provisions from employment or social insurance 1954. in the 1954 amendments go into effect. or both. Approximately half the re- There were about 400,000 aged per- The public assistance Program, al- maining persons aged 65 and over sons receiving old-age and survivors though of declining importance as a were receiving old-age assistance. Al- insurance benefits in June 1954 who source of income for the aged, has most 5 million aged persons-about 2 at the same time had some income continued to be highly important for in every 5 men and 1 in every 3 wom- from employment. Many of this group those needy aged persons who are en-were getting old-age and sur- undoubtedly had only casual employ- ineligible for old-age and survivors vivors insurance benefits. An addi- ment. perhaps a few hours a week insurance or unable to make ends tional 1.2 million persons benefited or a few days a month, which pro- meet on their benefit checks. Old- directly or indirectly from related vided a supplement to their benefit age assistance recipients during the prugrams: railroad retirement, gov- checks. Others, aged 75 and over and past 2 years have numbered about ernment employees’ retirement, or therefore not subject to the retire- 2.5 million, including 400,000-500,000 the veterans’ compensation and pen- ment test, had full-time employment. persons who were also receiving old- sion programs. More than 100,000 persons receiving age and survivors insurance benefits. Old-age and survivors insurance benefits under another public retire- The number who receive checks from benefit checks reached 36 percent of ment program or the veterans’ pro- both programs has been increasing all persons aged 65 and over in June grams also had some income from gradually, but the rise has been pro- 1954, compared with 32 percent a employment (not shown separately portionately slower than the increase year earlier and 26 percent in June on the table). It is probable that in the number of old-age and sur- 1952. Beneficiaries outnumbered old- relatively more beneficiaries under vivors insurance beneficiaries: and in age assistance recipients almost 2 to 1 these programs than under old-age June this group comprised less than and exceeded by 25 percent the num- and survivors insura.nce had income from employment, since the retire- ‘Ruth White, “Concurrent Racelpt of ber with any income from employ- Public Assistance and Old-Age and f&r- ment during the month. In contrast ment test has tended to be less vivors Insurance,” Sodal Security Bull& to the rapid growth of old-age and strict under the systems for govern- tin, August, 1954. survivors insurance as a source of income, both employment and old- Table L-Estimated number of persons aged 65 and over receiving money age assistance have declined in im- income from specified sources, June 1954 1 portance during recent years (chart ml millions] 1). While the total population aged - - 65 and over has been increasing al- solme of inmme 2 Total Men W0me32 - most 3 percent per year, the number i- -- -- of aged persons at work and the Total population aged G and over __________.__.________________________ 13.7 6.4 7.3 -- -- number receiving public assistance Employment __________.__. ________________________ _________________________ 1 3.9 l.5 were approxhnately the same in June E**DerS-_---.---.--.-----.--.----------..--------------~----------------- 3.0 t: Wives of earners not themselves employed ________________________________ __ _ _ _ _ _ _ :: 1954 as in June of 1952 and 1953. Social insurance nnd related programs I- ._ ________________________._______ -. / 62 3.3 Old-age and survivors insurance____________.__.______________________ ____ 4.9 2.6 ii The decline in the proportion of Railroad retirement insurnnre.~~.~. __________._______.______________.__ -/ .5 aged persons with earned income re- Government employees’ retirement prokmxns___________________ ________._ I ,4 ;E :“2 Veterans’ compensation and pension prok%xns-. __ __ .________________ ___ .4 flects in part a reduction in employ- Beneficiaries’ wives not in direct receipt of benefits ____.__..______________ :: Old-age assistsme____________ __.__ .__. _________________________________ ___) 2:: --?:O ment opportunities for older workers No money income or income solely from other sources_____ _____ _ _ ___-.__! 2.1 .4 ::: and. in part the effect of the amend- Income from more than one of specified sources__________. .__._____..__ --_. ! 1.0 .3 ments passed in 1950 and 1952 that Employment and old-agr and survivors insurance __________.._______. -. :i Old-age and survivors insurance and old-age assistance.___. ._______. :i .3 :1 liberalized old-age and survivors in- Other’.....------._--------------------~-----~------~--------------------i .I .1 (‘1 surance benefit and coverage provi- - sions. On January 1, 1954, there were 1 Continental United States. Population esti- is between the old-age and survivors insursn~ and mates for 1954 sre not entirely comparable with veterans’ progrsms. nevertheless 1.4 million persons aged those for 1951-53used in previous Bulletin notes 1 Persons with income from socisl Insurance (other 65 and over who were fully insured on the economic status of the aged, because of revi- than old-age and survivors Lnsurance) or a related sions by the Bureau of the Census. promm and from employment or old-age assistance. but not receiving benefits. Such per- s The sum of the persons shown under the four 5 Fewer than 60,000. categories exceeds tlie number in the population Eource: Number of persons of specified age, ssx, sons, substantially a!1 of them pre- by the number with income from more than one of and marital nnd earner status estimated from pub- the three main sources, BSshown at the end of the lished and unpublished data of the Bureau of thr table. Persons with income from sources specified Census. Number of persons receiving paymenta *Prepared by Lenore A. Epstein, Divi- msy also have received income from other sources. under social insurance and related programs and sion of Research and Statistics, OfRce of 8 Personswith income from more than one program from old-age assistonce reported by administrative the Commissioner. sre counted only once. The principal duplication agencies (partly estimstod). 16 Social Security Chart l.-Percent of persons aged 65 and over with income from old-age and fifth were receiving old-age assist- survivors insurance, from employment, and from old-age assistance, June ance. 1950-June 1954 The fact that almost one-fourth PERCENT of all aged women were without in- come from employment or from one of the public income maintenance programs, compared with barely 6 percent of the men, reflects the much lower labor-force participation rates of women and their longer life-ex- pectancy rates. Since men are nor- mally in the labor force throughout most of their adult lives, they are eligible for retirement benefits after age 65 when they no longer are earn- ing-provided, of course, that they worked in covered employment. In June 1954 the percent of aged men and aged women, respectively, with income from one or both sources was 10 as follows: Percent sollrceof income Total Men women -- Employment.. __ _ _ .____ 20 38 21 Social insurance or related 11 program.. --- -________ 45 52 40 Either or both... ..____ 70 El.3 69 10 percent of all old-age and surviv- surance program. Some received peri- I i ors insurance beneficiaries. odic payments under individual an- Regardless of the benefit level, nuities and the settlement options of The situation was clearly very some beneilciaries will always have life insurance contracts. Others had different for aged women than for special needs-most often for medical income from real estate, stocks, aged men, with income from employ- care-that they cannot meet without bonds, or other investments. Some ment or social insurance much more assistance. It is expected, however, were living off their assets-that is, common among the latter even when that the 1954 amendments raising withdrawing from savings or using the 900,000 wives of earners are beneflt amounts (an average of $6, cash realized from the sale of assets. counted as having income from em- for example, for old-age benefits) A relatively small proportion received ployment. ‘%he wives of earners com- and liberalizing the retirement test assistance in cash from private wel- prised more than two-thirds of all will eliminate part of the need for fare agencies or cash contributions on aged women shown as having income public assistance payments to supple- a regular basis from relatives. Prob- from employment. The 600,000 wom- ment old-age and survivors insurance ably a substantial number were sup- en with some earnings from their own benefits for some persons. The liber- ported by children or other relatives employment plus the 873,000 women alization of eligibility requirements, with whom they lived. Some were in receiving benefits in their own right particularly the provision that applies public institutions. as retired workers comprised only to survivors of certain workers who All aged persons in institutions one-fifth of all aged women.
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