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Income of the Aged Chartbook, 2000
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Income of the Aged Chartbook, 2000
Abstract
This biennial companion to Income of the Population 55 or Older highlights selected data in charts and tables
that are easy to understand. The charts focus on the receipt and shares of income from Social Security,
pensions, assets, earnings, and public assistance, effectively illustrating the Social Security program's pivotal
role in the economic security of the aged.
Keywords
aging, employment, retirement, pension, benefits, trends, public policy, Social Security
Comments
Suggested Citation
Social Security Administration. (2002). Income of the aged chartbook, 2000. Washington, DC: Author.
http://digitalcommons.ilr.cornell.edu/key_workplace/663
This article is available at DigitalCommons@ILR: http://digitalcommons.ilr.cornell.edu/key_workplace/663
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2000
Income of
the Aged
Chartbook
Income of the
Aged Chartbook,
2000
Social Security Administration
Office of Policy
Office of Research, Evaluation, and Statistics
Preface
Since 1941, the Social Security Administration (SSA) has periodically surveyed the aged to
determine their economic status. The first national survey was conducted in 1963. In 1976,
SSA’s Office of Research and Statistics began compiling a biennial series of reports on the
income of the aged based on data collected by the U.S. Census Bureau in its Current
Population Survey. These SSA reports are published under the title Income of the
Population 55 or Older. The most recent edition of that publication is based on 2000 data,
which, along with special tabulations, form the basis for this chartbook.
The unit of analysis here, with the exception of measures of poverty, is the “aged unit” and
not the household, the family, or unrelated individuals, as are used by the Census Bureau.
The aged unit is either a married couple living together, with husband or wife aged 65 or
older (generally measured by the age of the husband), or a person 65 or older who does not
live with a spouse. The unit of analysis for poverty is persons aged 65 or older.
The 2000 sample represented 10,300,000 couples and 14,930,000 single units. The
single unit may be a widow(er), a divorced or separated person, a legally married person
who does not live with a spouse, or a person who never married. This unit of analysis allows
one to measure the economic status of the entire noninstitutionalized aged population
separately from that of the family or household in which the unit may live.
Alexander Estrin and Melissa Koenig prepared this chartbook. For questions related to the
content of the charts, please call 202-358-6219 or e-mail [email protected]. The
chartbook was edited by Celine Houget and designed by Emil Loomis, who also prepared
the print version for publication. Laurie Brown prepared the Web versions.
This chartbook and its companion publication, Income of the Population 55 or Older, are
available on our Web site at www.ssa.gov/policy. For additional copies, please telephone
202-358-6274 or e-mail [email protected].
Susan Grad
Acting Associate Commissioner
for Research, Evaluation, and Statistics
April 2002
Definitions and Notes
Income Sources
Retirement benefits include Social Security, other public sources such as Railroad
Retirement and government employee pensions (military, federal, state, and local), and
private pensions and annuities.
Social Security includes retired-worker benefits, dependents’ or survivors’ benefits,
disability benefits, transitionally insured benefits, and special age-72 benefits.
Pensions include private pensions and annuities, government employment pensions,
Railroad Retirement, and individual retirement account, Keogh, and 401(k) payments.
Income
Total money income is the sum of all income received by the aged unit before any
deductions such as those for taxes, union dues, or Medicare premiums. Total money
income does not reflect nonmoney transfers such as food stamps, health benefits,
subsidized housing, payments in kind, or fringe benefits from one’s employment.
Aggregate income is the sum of the total money income of all aged units in the
population of interest. Several charts in this book present the shares of aggregate
income attributable to specific sources, such as Social Security.
General Notes
All years are calendar years.
Nonmarried men and nonmarried women include persons who are separated or married
but living apart from their spouse.
Persons of Hispanic origin may be of any race.
Percentages may not sum to 100 because of rounding.
Contents
Income Sources
Percentage receiving income from specified source 3
Percentage receiving Social Security benefits, by relative importance
of benefits to total income 4
Percentage receiving income from earnings and pensions, by age 5
Percentage receiving income from major sources, by race and Hispanic origin 6
Change in percentage receiving income from major sources 7
Total Money Income
Percentage receiving income, by income level 11
Percentage with various levels of income, by receipt of asset income 12
Median income, by receipt of earnings and retirement benefits 13
Median income and percentage distribution of aged units, by age,
marital status, and sex of nonmarried persons 14
Median income, by age 15
Median income, by marital status, sex of nonmarried persons,
race, and Hispanic origin 16
Change in median income, by marital status and race 17
Shares of Aggregate Income
By source 21
For the lowest and highest income quintiles, by source 22
Change in shares, by source 23
Poverty Status, Based on Family Income
By marital status, sex of nonmarried persons, race, and Hispanic origin 27
By age, marital status, and sex of nonmarried persons 28
By age 29
Income
INCOME Sources
SOURCES
Social Security is a source of income
for nearly all of the aged.
Social Security provides at least half of
total income for a majority of beneficiaries.
Age groups differ in their likelihood of
receiving earnings, but not pensions.
Receipt of income from major sources
varies by race and Hispanic origin.
Income Sources
Social Security is a source of income for nearly all of the aged. Nine out of 10
aged units receive Social Security benefits. Asset income is the next most common source of
income, received by about three-fifths of the aged. Two-fifths receive retirement benefits
other than Social Security, and only one-fifth have earnings. Public assistance is received by
5% and veterans’ benefits by only 4%.
Percentage receiving income from specified source, 2000
Percent
100
90
90
Retirement benefits
other than Social Security
80
Public and
private (2%)
70
Public
(12%)
59
60
Private
(27%)
50
41
40
30
22
20
10
5
4
Public
assistance
Veterans'
benefits
0
Social
Security
Asset
income
Retirement
benefits
other than
Social Security
Earnings
3
Income Sources
Social Security provides at least half of total income for a majority of
beneficiaries. Social Security pays benefits to 90% of those aged 65 or older.
It is the major source of income (providing 50% or more of total income) for 64%
of the beneficiaries. It contributes 90% or more of income for almost one-third of the
beneficiaries and is the only source of income for 20% of them.
Percentage receiving Social Security benefits, by relative importance
of benefits to total income, 2000
Percent
40
36
33
30
20
20
11
10
0
Less than 50%
of income
4
50-89%
of income
90-99%
of income
100%
of income
Income Sources
Aged groups differ in their likelihood of receiving earnings, but not pensions.
Earnings are much more common in the youngest group than in the oldest group—44%
compared with 4%. Private pensions are about as common across age groups, except for the
group aged 85 or older. In all age groups, there is little or no difference in the likelihood of
having public pensions.
Percentage receiving income from earnings and pensions, by age, 2000
50
Private pensions
Earnings
Percent
Public pensions
44
40
31
31
30
28
28
26
22
20
15
15
14
15
14
10
13
7
4
0
65-69
70-74
75-79
80-84
85 or older
Age
5
Income Sources
Receipt of income from major sources varies by race and Hispanic origin.
Among the aged, whites and blacks are somewhat more likely than Hispanics to receive
Social Security. Whites are much more likely than blacks or Hispanics to receive income
from assets and from pensions. The groups are about equally as likely to have earnings.
Minority aged units are much more likely to receive Supplemental Security Income (SSI) than
are whites.
Percentage receiving income from major sources,
by race and Hispanic origin, 2000
100
91
90
80
Black
White
Percent
Hispanic
88
77
70
63
60
50
43
40
29
30
33
28
22
20
23
19
19
16
10
10
3
0
Social
Security
6
Asset
income
Pensions
Earnings
SSI
Income Sources
Receipt of Social Security has become nearly universal. In 1962, 69% of the aged
received Social Security benefits; in 2000, 90% of them did. Most of that increase occurred in
the 1960s. Receipt of other pension income, which more than doubled from 1962 to 1992,
has decreased slightly since then. The proportion of aged units with asset income, which had
been about two-thirds since 1980, has dropped since 1994. The proportion with earnings
has declined since 1971 and has been about 21% since 1982. The proportion receiving
public assistance has also declined and is now about a third of its 1962 level.
Change in percentage receiving income from major sources, selected years
Percent
100
Social Security
Pensions
Asset income
Earnings
Public assistance
90
80
70
60
50
40
30
20
10
0
62
67
71
76
78
80
82
Year
84
86
88
90
92
94
96
98
00
7
Total Money Income
The aged are an economically
diverse group.
Income differences by age are associated
with differences in marital status.
Demographic differences are associated
with different levels of income.
Median real income has risen substantially
over the years.
Total Money Income
The aged are an economically diverse group. Median income for all aged units is
$18,778, but there are wide differences within the total group. About 19% have an income
of under $9,000 (compared with the 2000 poverty threshold of $8,259 for one person aged
65 or older), and 14% have an income of $50,000 or more.
Percentage receiving income, by income level, 2000
Percent
20
18
17
15
14
13
10
10
8
6
5
5
4
3
2
0
Less
than 5
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50
or more
Median income (thousands of dollars)
11
Total Money Income
Receipt of asset income is associated with relatively high median income.
The median income of aged units with asset income is more than twice that of those with no
asset income ($25,974, compared with $11,536). Aged units with no asset income are
concentrated in the lowest income categories—41% have a total income below $10,000,
and only 11% have an income of $30,000 or more. Among aged units with asset income,
10% have a total income of less than $10,000, and 42% have an income of $30,000 or
more.
Percentage with various levels of income, by receipt of asset income, 2000
50
With asset income
Percent
Without asset income
42
41
40
35
30
27
21
20
13
10
10
11
0
Less than 10
10-19
20-29
Median income (thousands of dollars)
12
30 or more
Total Money Income
Receipt of earnings and retirement benefits also affects total income. About 7%
of aged units have no retirement benefits. Of those, 39% have earnings, and their median
income is $34,130; 61% have no earnings, and their median income is only $549. In the
absence of earnings, median income rises markedly with the number of retirement benefits
received, from $11,562 with one retirement benefit to $24,611 with two. For units with both
earnings and retirement benefits, median income is $33,268 for those with one retirement
benefit and $44,980 for those with two.
Median income, by receipt of earnings and retirement benefits, 2000
Without earnings
With earnings
Dollars
50,000
44,980
40,000
34,130
33,268
30,000
24,611
20,000
11,562
10,000
549
0
No retirement
benefits
One retirement
benefit
Two retirement
benefits
13
Total Money Income
Income differences by age are associated with differences in marital status.
Median income is generally lower in older age groups. The striking differences by age are
due in part to the disproportionate number of nonmarried women in older age groups. In
every age group, nonmarried women have a lower median income than nonmarried men or
married couples. Also, nonmarried women far outnumber the others in the older age groups.
Median income and percentage distribution of aged units, by age,
marital status, and sex of nonmarried persons, 2000
Marital status and sex
of nonmarried persons
65-69
70-74
75-79
80-84
85 or older
Median income (dollars)
Married couples
Nonmarried men
Nonmarried women
36,948
19,128
13,415
32,012
14,678
12,269
27,723
15,715
12,020
27,206
16,247
12,335
24,779
13,764
10,910
Percentage distribution of aged units
Total percent
Married couples
Nonmarried men
Nonmarried women
Total number of
aged units (thousands)
14
100
100
100
100
100
55
14
31
45
16
39
39
14
47
31
17
52
19
19
62
6,508
6,154
5,689
3,841
3,038
Median income, by age, 2000
Dollars
30,000
25,873
20,291
20,000
17,282
16,714
12,964
10,000
0
65-69
70-74
75-79
80-84
85 or older
Age
15
Total Money Income
Demographic differences are associated with different levels of median income.
Income is highest for married couples, who have a median income about twice that of
nonmarried men and more than 2½ times that of nonmarried women. Whites have a median
income 60% greater than that of blacks and almost 90% greater than that of Hispanics.
Median income, by marital status, sex of nonmarried persons, race,
and Hispanic origin, 2000
Dollars
40,000
31,188
30,000
19,790
20,000
15,682
12,333
12,035
10,544
10,000
0
Married
couples
16
Nonmarried
Men
Women
White
Black
Hispanic
Total Money Income
Median real income has risen substantially over the years. Between 1962 and
2000, the income of the aged increased even when adjusted for inflation. The increase was
91% for married couples and 98% for nonmarried persons. There were disproportionate
increases by race. Between 1967 and 2000, the income of whites increased by 102%; that
of blacks increased by 78%.
Change in median income, by marital status and race,
selected years
Thousands of 2000 dollars
Married couples
White
Nonmarried persons
Black
35
30
25
20
15
10
5
0
62
67
71
76
78
80
82
84
86
88
90
92
94
96
98
00
Year
17
Shares of
Aggregate Income
Social Security provides the largest share
of aggregate income for persons 65 or older.
Shares of income from each source differ
greatly by income level.
Over time, Social Security has provided the
largest share of aggregate income for the aged.
Shares of
Aggregate Income
Social Security provides the largest share of income for the aged. Aggregate
income for the population 65 or older comes largely from four sources. Social Security
provides 38%, earnings account for 23%, and asset income and pensions each account for
18%. Only 3% comes from other sources.
Shares of aggregate income, by source, 2000
Other
3%
Pensions
18%
Social Security
38%
Asset income
18%
Earnings
23%
21
Shares of
Aggregate Income
Shares of income from each source differ greatly by income level. Aged units are
ranked by total money income and divided into five groups of equal size called quintiles.
Persons in the lowest quintile have the largest share of income from Social Security benefits
(82%), and public assistance provides the second largest share (8%). For those in the highest
income quintile, earnings provide the largest share of income (35%), income from assets is
the next most important (24%), followed by pensions (19%) and Social Security (19%).
Shares of aggregate income for the lowest and highest income quintiles, by source, 2000
Social Security
Asset income
Public assistance
Pensions
Earnings
Other
Less than
0.5%
2%
8%
2%
82%
1%
3%
19%
35%
3%
19%
24%
Lowest quintile
22
Highest quintile
Shares of
Aggregate Income
Over time, Social Security has provided the largest share of aggregate income
for the aged. In 1962, it provided the largest share followed closely by earnings. In 2000,
Social Security continued to provide the largest share but by a much wider margin compared
with the other major sources of income. The share from asset income increased for over 20
years but has generally declined since the mid-1980s. The share from earnings has had the
opposite pattern—declining until the mid-1980s and increasing since then. The share from
pensions had doubled by the early 1990s but has since leveled off.
Change in shares of aggregate income, by source, selected years
Percent
Social Security
Pensions
Asset income
Earnings
Other
50
45
40
35
30
25
20
15
10
5
0
62
67
76
78
80
82
84
86
88
90
92
94
96
98
00
Year
23
Poverty Status, Based
on Family Income
High proportions of nonmarried and minority
aged are poor or near poor.
The oldest age group (85 or older) has
the highest poverty rate.
Poverty Status, Based
on Family Income
High proportions of nonmarried and minority aged are poor or near poor. The
variations in family income by marital status and by race are reflected in the poverty rates for
those subgroups of the aged. Nonmarried persons and minorities have the highest poverty
rates, ranging from 15% to 22%. When those with income between the poverty line and
125% of the poverty line (the near poor) are included, the rates for nonmarried persons and
minorities range from 24% to 31%.
Poverty status, by marital status, sex of nonmarried persons,
race, and Hispanic origin, 2000
Near poor
Poor
Percent
30
25
22
20
19
18
15
15
12
11
9
9
10
9
7
5
5
3
0
Married
persons
Nonmarried
Men
White
Black
Hispanic
Women
27
Poverty Status, Based
on Family Income
The oldest age group has the highest poverty rate. In keeping with the lower median
income of older age groups, poverty rates are often higher for those who are older. As with
income, the large proportion of nonmarried women in the older age groups contributes to
the difference in poverty rates by age. Nonmarried women are more likely than married
persons to be poor or near poor in every age group. The near poor have income between
the poverty line and 125% of the poverty line.
Poverty status, by age, marital status, and sex
of nonmarried persons, 2000
Age
Married
persons
Nonmarried
men
Nonmarried
women
Percentage poor
65-69
70-74
75-79
80-84
85 or older
4
4
5
5
5
16
17
13
15
16
18
18
19
17
17
Percentage poor or near poor
65-69
70-74
75-79
80-84
85 or older
28
7
8
9
9
11
23
27
20
27
25
27
29
30
27
33
Poverty status, by age, 2000
Near poor
Poor
Percent
20
15
14
12
12
11
10
10
8
8
7
6
5
4
0
65-69
70-74
75-79
80-84
85 or older
Age
29