Bay State Elders at economic risk, report says
A new report with county-specific economic data on the living standards of Massachusetts elders shows just how precarious the economic future will likely be for many of them, raising questions about the sustainability of the buying power of an age group that’s about to welcome the first of the baby boomers.
Without subsidies for housing and health care, today’s Bay State elders can’t make ends meet on Social Security alone, the authors of a new report told a crowd of about 120 attendees, most of them senior citizens, in a Dec. 13 visit to the Worcester Senior Center.
The report, "Elder Economic Security in Massachusetts," co-authored by the Gerontology Institute-UMass and Wider Opportunities for Women, finds that the average Social Security payment of $12,024 covers less than half of what is needed to meet basic housing, food and health care costs in the state.
Elder singles in Worcester County spend $19,138 on basic expenses annually if they rent a one-bedroom apartment, $15,480 if they own a home mortgage free, and $26,928 if they still carry a mortgage. The expenses do not include home maintenance or the cost of public transportation. Changes in health status raise annual costs significantly, and the need for high-level long term care can approximately double the basic expense figure.
The report finds that elder homeowners with no mortgages were only marginally better off than renters. Extra maintenance costs, such as a new roof for a mortgage free house, often exceed elder homeowners’ budgets, which already allocate 33 percent to 52 percent of income to housing. The presenters at the study told the elderly audience that falling behind on basic costs under such constraints is not a function of making the wrong decision, and that elders should not be ashamed of asking for help.
"I just thank God I worked for the state for 20 years," said Worcester resident Mary Mason, who spoke at the presentation. She counts on a state pension as well as social security. Still, she says, the $3,000 annual out-of-pocket cost of treating her diabetes - medication and a special diet - constrains her.
Laura Henze Russell of the Gerontology Institute says reverse mortgages may not be as effective a solution for elderly homeowners as a traditional mortgage. Reverse mortgages pay the homeowner a monthly stipend until the home is sold or the owner dies. Consumer-protection measures on the loans have been relaxed in recent years, she said today. Reverse mortgages "shouldn’t be a first line of defense" for cash-poor elder homeowners, she warned.
Christina P. O’Neill can be reached at coneill@wbjournal.com
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