Poverty among elderly likely to rise
Without changes in the U.S. retirement system, poverty among people 65and over is likely to increase, according to a report released Tuesdayby the Center for Retirement Research at Boston College. The center measures households at risk of being unable to maintaintheir standard of living once they stop working. For the highest-incomehouseholds, being unable to maintain their standard of living may meancutting back on extras. But for the lowest third of households, 45 percent of whom are at risk,being unable to maintain their standard of living may mean cutting backon essentials, the report said. The bottom third of households are less likely to own their homes, havepensions or have meaningful 401(k) assets, making them more reliant onSocial Security than their wealthier peers. As a result, the increased minimum age for Social Security benefits,from age 65 for those born in 1937 or earlier to age 67 for those bornafter 1960, will hurt them more, according to the report. The delay in Social Security means that 60 percent of Generation Xersin the bottom third of income are at risk for being unable to maintaintheir standard of living in retirement.