Older adults in the Boston area are struggling to make ends meet as they enter retirement, according to a new report. The high cost of living and economic inequality leaves low-income seniors vulnerable, especially seniors of color.
The report from Boston Indicators and the Center for Retirement Research at Boston College found that 80 percent of low-income older adults in Massachusetts do not have enough assets to meet their basic needs and age in place — higher than the national average of 63 percent. The findings are based on the Elder Index, developed by the Gerontology Institute at the University of Massachusetts Boston.
And although Massachusetts is a wealthier state overall, that wealth is unevenly distributed: The top third of older households hold an average wealth of over $3.5 million; the bottom third averages $50,000 in wealth.
The report also found striking racial disparities: 74 percent of non-white senior households are in the bottom third of Massachusetts’ wealth distribution. That rate is 54 percent in other U.S. states.
Amy Schectman, chief executive officer of 2Life Communities, an affordable senior housing development in Brighton, has seen first hand how hard it is for low-income older adults to get by.
“All the things that make [Massachusetts] wonderful to live here and wonderful to retire here make it really hard financially. Housing is extremely expensive,” she told GBH News. “Social security doesn’t really adjust for that.”
Schectman points to a lack of affordable senior housing across the state. She says there is a waiting list of 9,000 families wanting to move in to 2Life apartments but just about 160 spaces turn over each year. Schectman adds that uncertainty about funding at the federal level has worried many adults who rely on public benefits.
“The reward of a comfortable, secure retirement is one of the unwritten expectations of the American worker – but for too many Massachusetts seniors, the combination of Social Security, retirement savings and other programs doesn’t quite cover what is needed,” said Luc Schuster, executive director of Boston Indicators, the research center at the Boston Foundation.
Many older adults feel left behind by society as they get older. “Seniors in America… I think we get treated like, you know, once we get to 65 you know, ‘bye, see you later,’” one older adult told researchers.
Researchers found that many older adults rely primarily on social security and other public benefits. While many had pensions and 401ks when they worked, they had been forced to tap into those funds because of emergencies.
“Because I helped with family members, you know, I took out my 401k…. I’m a retired teacher, you know. So it’s, it’s hard, it is really, really hard,” one older adult told researchers.
Because of that, many older adults’ transition to retirement is abrupt, forcing them to adjust to a lower standard of living.
Subsidized housing can be a “lifeline” for these older adults, researchers found. Yet, the programs can have strict eligibility requirements and can be difficult to navigate, especially for people who may not speak English or who are isolated.
Schectman says subsidized housing like 2Life can give older adults the chance to “live a good life” rather than focus on surviving.
“Their basic necessities [are] taken care of, now they can volunteer in the schools, volunteer at the library, help tutor a young person, help give a young person some career advice,” she said.
The report pointed to several long term policy changes that could help, including reforming programs that allow older adults to defer property tax payments while they still live at home; and setting up an automatic IRA program for employees who don’t have retirement plans through their employer.
