Abstract
A just society treats seniors with dignity, respecting their purpose, independence, and contributions. Promoting lifelong sustainable well-being for seniors benefits all citizens and strengthens the nation. This report examines the long-term economic security of seniors, depicts current trends and suggests policies promoting the enduring well-being of seniors.
Security for seniors was built on the three-legged stool of retirement (Social Security, pensions, and savings) at the core of the social contract that rewards a lifetime of productivity. Economic security of seniors, however, is being challenged by two simultaneously occurring trends: a weakening of the three legs of retirement security income and dramatically increasing expenses, such as for healthcare and housing. These fundamental changes in the lives of older Americans make it not only more difficult for seniors to enter retirement with economic security but also to remain economically secure throughout retirement.
In light of these altering conditions, this report assesses how the social contract is holding up into the Twenty-First Century. Using national data for seniors age 65 or above, we created the Senior Financial Stability Index (SFSI) to measure the long-term economic security of senior households throughout their retirement years. The fundamental components that frame economic stability for older Americans in the SFSI are Housing Costs, Healthcare Expenses, Household Budget, Home Equity, and Household Assets.