Alabama Business Q2/2004 A Profile of Older Alabamians Population Size and Composition. Alabama was home to 592,181 people 65 and over on July 1, 2003, according to Census Bureau estimates. The state’s older population increased by 12,383 since 2000, a 2.1 percent gain that exceeded the 1.2 percent total population increase. There were 522,989 Alabamians 65 and over in 1990. Older residents as a share of total population increased only slightly from 12.9 percent in 1990 to 13.0 percent in 2000. It reached 13.2 percent in 2003. Residents 85 and over numbered 67,301 in 2000 and climbed to an estimated 71,484 in 2003. Between 1990 and 2000, persons 85 and over rose 18,794, a 38.7 percent increase. Women outnumber men, with the discrepancy increasing sharply with age. The 65 and over population in Alabama was 39.9 percent male and 60.1 percent female in 2000. While there were 79 men for every 100 women in the 65 to 74 age group, for age 85 and over the ratio was just 36. Alabama’s older population is less diverse than its younger residents. Eighty percent of individuals 65 and over reported their race as white alone on the 2000 census, while 18.9 percent selected black alone. Among Alabama’s population under age 65, 69.8 percent list their race as white alone and 27.1 percent fall into the black alone category. Marital Status and Living Arrangements. Older men are much more likely than older women to be married and living with their spouse. In the 65 to 74 age group, 76.3 percent of men and 49.1 percent of women reported this marital status in 2000. But for the oldest age group, these numbers dropped sharply—45.4 percent of men 85 and over and just 6.7 percent of women lived with a spouse in 2000. By the time they reach age 75, most older women (60.7 percent) are widowed. By contrast, just 19.1 percent of men in the 75 to 84 age group were widowers. Among Alabamians 65 and over, 54.4 percent resided in family households, while 45.6 percent lived in a nonfamily household setting—primarily living alone. There were 28,924 elderly residents in group quarters in 2000, including 24,623 in institutions including nursing homes. This compares to 22,704 institutionalized elderly in 1990. Most older householders own their homes—82.3 percent in 2000 compared to 17.7 percent renting. Home ownership among older Alabamians rose during the decade; in 1990, 79.4 percent of older householders owned their homes. Older residents are likely to remain in the state, at least until very late in life, when living arrangements may change as a result of failing health. Between 1995 and 2000, 19,765 persons 65 and over moved into Alabama, while 16,734 moved out for a net gain of 3,031. Health Status. The ability to function independently is a key component of a good quality of life for the older population. In 2000 about 275,000 state residents 65 and over, or 49.5 percent of the noninstitutionalized older population, were affected by at least one long-lasting condition or disability. Over 197,000 older residents (35.5 percent) have a physical condition that limits basic activities such as walking, climbing stairs, lifting, or carrying. And one in four Alabamians 65 or older has difficulty going outside the home to shop or visit a doctor. Seventeen percent of older residents suffer from blindness, deafness, or a severe vision or hearing impairment. Over 81,000 have difficulty learning, reading, or concentrating, while close to 72,000 have a condition that makes it hard to dress, bathe, or get around inside the home. Alabamians 65 and Over by Type of Disability, 2000 Number Percent Number of Disabilities None One Two or more 280,361 118,603 156,441 50.5 21.4 28.2 Type of Disability Sensory Physical Mental Self-care Go-outside-home 94,555 197,242 81,229 71,904 139,401 17.0 35.5 14.6 12.9 25.1 Note: Disabilities are for the noninstitutionalized population. Individuals may mark multiple disabilities. Source: U.S. Census Bureau. Q2/2004 Alabama Business Transportation. Access to transportation is another important factor in the quality of life and independence of the older population. According to Census 2000, most older Alabamians have a vehicle available—just 9.7 percent of residents aged 65 to 74 and 22.1 percent of those 75 and over had no vehicle available. But having a vehicle parked at a residence does not mean that the individual is willing or able to drive. A 2004 study by the American Public Transportation Association and the AARP reported that 104,207 (18.0 percent) of Alabamians 65 and older were non-drivers in 2000. They estimate that on any given day, 69 percent of these non-drivers stay home due to lack of transportation on average in the four-state region consisting of Alabama, Kentucky, Mississippi, and Tennessee. Income and Poverty. Median household income in 1999 peaked between the ages of 45 and 54 at $46,705. Income then tapers off fairly rapidly—at $25,676, median household income for Alabamians aged 65 to 74 amounted to 55.0 percent of peak income, while income of $17,729 in the 75 and over bracket was just 36.7 percent. The 2000 census estimated that income of 86,276 Alabama residents 65 and over fell below the poverty level in 1999. This 15.5 percent of the older population in poverty is down from 24.0 percent 10 years earlier. Women in this age group were much more likely than men to live in poverty— 10.7 percent of 65 and over men and 18.8 percent of women had income in 1999 below the poverty level. Poverty rates increased with age as 12.9 percent of the state’s population aged 65 to 74 years lived in poverty compared to 19.0 percent of those 75 and over. Labor Force Participation and Employment. The youngest members of Alabama’s 65 and over population are most likely to work or be looking for work. One in five residents aged 65 to 69 were in the civilian labor force in Alabama Business is a quarterly publication of the Center for Business and Economic Research, Culverhouse College of Commerce and Business Administration, The University of Alabama. Articles reflect the opinions of the authors, but not necessarily 2000, with 34,264 working and just 3.4 percent unemployed. Men were much more likely to be in the labor force than women in this group—26.3 percent of males and 16.5 percent of females. Employment tapers off quickly with age, with 12.0 percent of Alabama residents 70 to 74 and 4.8 percent of those 75 and over working in 2000. A Growing Older Population. While growth in the 65 and over population will be moderate through 2010, it will begin to accelerate in 2011 as the first of the baby boom generation turn 65. And as the oldest baby boomers reach 85 in 2031, that population group will increase rapidly. This aging swell will impact all aspects of the Alabama economy, from health care to housing to transportation to consumer spending, as a large segment of the population shifts from work to retirement. Projections from the Center for Business and Economic Research show the state’s 65 and over population growing by 339,426 between 2010 and 2025, for a gain of 51.4 percent. This contrasts with the addition of just 80,545 residents to this age group between 2000 and 2010, an increase of 13.9 percent. in 2000. While 13.0 percent of the state’s residents were 65 and over, shares of county populations in this category ranged from 8.1 percent in Lee and 8.5 percent in Shelby to 17.9 percent in Covington. County populations will not age at the same rate between 2000 and 2025 due in large part to migration patterns. Expanding economic opportunity in some counties will draw more working-aged in-migrants, while lack of opportunity in others will result in the loss of college- and younger working-age Alabama’s older population was not individuals. If this latter pattern persists, evenly distributed across its 67 counties counties with perennially high unemployAlabama’s Older Population, 2000 to 2025 ment such as Butler, Choctaw, and Greene 65 and over 85 and over could find close to a Number Change Number Change quarter of their residents in the 65 and 2000 579,798 67,301 over age group in 2025. 2005 609,135 5.1% 75,632 12.4% Older populations 2010 660,343 8.4% 87,438 15.6% could swell in Alabama 2015 757,211 14.7% 98,488 12.6% counties such as Bald2020 871,646 15.1% 108,478 10.1% win that are retirement 2025 999,769 14.7% 122,605 13.0% destinations as well. Note: The 65 and over population includes the 85 and over population. Source: U.S. Census Bureau and Center for Business and Economic Research, The University of Alabama. those of the staff of the Center, the faculty of the Culverhouse College of Commerce, or the administrative officials of The University of Alabama. All correspondence should be addressed to: Editor, Alabama Business, Center for Carolyn Trent Business and Economic Research, Box 870221, Tuscaloosa, Alabama 35487-0221. Copies of this publication as well as other socioeconomic data resources are available on the Center website: http://cber.cba.ua.edu
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