Finances »Poverty Status
Why It's Important
Notable income disparities continue to exist between race and gender. Economic security
in later years is determined by several factors, including wages, work history,
marital status, family responsibilities, pension coverage, financial literacy, discrimination,
health insurance, home equity and access to savings and investments. For example,
while the Social Security benefit formula favors lower lifetime earners by replacing
a higher percentage of earnings, their low earnings and work histories can leave
them with incomes below poverty when they retire or become disabled.
See Data By: Richmond MSA | Virginia
| National
How Richmond Is Doing
Poverty Status for U.S., Richmond and Virginia
|
|
United States
|
|
Virginia
|
|
Richmond MSA
|
|
|
|
|
%
|
|
%
|
|
%
|
|
45 to 64 years:
|
74,141,852
|
|
1,947,508
|
|
307,721
|
|
|
Income in the past 12 months below poverty level:
|
6,476,758
|
9%
|
125,861
|
6%
|
19,775
|
6%
|
|
Income in the past 12 months at or above poverty level:
|
67,665,094
|
91%
|
1,821,647
|
94%
|
287,946
|
94%
|
|
65+ years:
|
35,664,127
|
|
847,757
|
|
129,013
|
|
|
Income in the past 12 months below poverty level:
|
3,521,829
|
10%
|
79,536
|
9%
|
11,517
|
9%
|
|
Income in the past 12 months at or above poverty level:
|
32,142,298
|
90%
|
768,221
|
91%
|
117,496
|
91%
|
|
Income in the past 12 months below poverty level:
|
|
45 to 54 years
|
3,731,126
|
|
71,023
|
|
11,013
|
|
|
55 to 64 years
|
2,745,632
|
|
54,838
|
|
8,762
|
|
|
65 to 74 years
|
1,619,811
|
|
36,311
|
|
5,419
|
|
|
75 years and over
|
1,902,018
|
|
43,225
|
|
6,098
|
|
|
Income in the past 12 months at or above poverty level:
|
|
45 to 54 years
|
39,090,268
|
|
1,049,545
|
|
166,535
|
|
|
55 to 64 years
|
28,574,826
|
|
772,102
|
|
121,411
|
|
|
65 to 74 years
|
17,116,911
|
|
433,563
|
|
64,706
|
|
|
75 years and over
|
15,025,387
|
|
334,658
|
|
52,790
|
|
(SOURCE: U.S. CENSUS BUREAU, 2005-2007 AMERICAN COMMUNITY SURVEY)
How Virginia Is Doing
According to the AARP Virginia State Handbook, which contained U.S. census
data from 2006:
- 9.9% of women age 65 to 74 and 12.7% of women over age 75 are in poverty. The national
poverty rates for these cohorts are 10.2% and 13.5%, respectively.
- 5.2% of men age 65 to 74 and 8.0% of men over age 75 are in poverty. The national
poverty rates for these cohorts are 6.9% and 7.7%, respectively.
- These rates have steadily increased since the last census in 1996.
(AARP PPI, State Handbook of Economic, Demographic,
and Fiscal Indicators 2008, 2008)
How the U.S. Is Doing
The percentages of persons 65 and over who are below poverty have decreased from
about 40 percent in 1959 to about 9 percent in 2006. In recent years, this percentage
has been around 10 percent.
According to a paper by AARP's Focalyst entitled, Busting Boomer Myths How Well
Do You Know Boomers? Counting Down the Top 10 Boomer Myths boomers aren't all wealthy.
Boomers are the wealthiest generation in history, but only 9 percent are truly affluent
(defined as having pre-tax incomes of $150,000 or more if working, or $100,000 or
more if retired.) In fact, 25 percent do not have any savings or investments at
all.
(AARP, FOCALYST, 2008)
According to an AARP report on low income boomers, low income boomers are:
- More likely to be members of a minority group (black, Hispanic or other groups)
- Less likely to have a college degree
- More likely to be high school dropouts than higher-income boomers
- Are projected to work fewer years between the ages of 22 and 62 than higher-income
boomers (only 22 years, compared with 33 years for higher-income boomers)
- Average lifetime earnings will be less than one-third those of higher-income boomers
- Low-income boomers are also much less likely to work when they become older (only
12 percent are expected to work at age 67, compared with 45 percent of higher-income
boomers)
- Will depend on Social Security for 60 percent of their household income in retirement,
while higher-income boomers will depend on Social Security for only 32 percent
(AARP, BOOMERS AT THE BOTTOM, 2008)
According to the National Partnership for Women and Families:
- Women are nearly 60 percent of all Social Security beneficiaries 65 and older, including
retirees, the disabled and the survivors of deceased workers.
- Women are 72 percent of beneficiaries over 85.
- Non-married (widowed, divorced or never married) women are the most reliant on Social
Security. About one in three non-married women aged 65 and older have no other source
of income. As women age, Social Security plays an even more important role.
- Today, about 20 percent of non-married women 65 and older and 5 percent of married
elderly women live below the poverty line.
- Without Social Security, 40 percent of elderly men would live below the poverty
line.
(NPWF SOCIAL SECURITY, POVERTY AND OLD AGE, 2008)
Data & Information Sources
AARP, Focalyst, Busting Boomer Myths How Well Do You Know Boomers, 2008
https://www.focalyst.com/Sites/Focalyst/Media/Pdfs/en/CurrentResearchReports/707070D2.pdf
AARP Public Policy Institute, State Handbook of Economic, Demographic, and Fiscal
Indicators, 2008
http://assets.aarp.org/rgcenter/econ/d19014_fiscal_va.pdf
AARP, Urban Institute, Boomers at the Bottom: How will low income boomers cope with
retirement? 2008
http://assets.aarp.org/rgcenter/econ/2008_07_boomers.pdf
Federal Interagency Forum on Aging Related Statistics
http://www.agingstats.gov/agingstatsdotnet/main_site/default.aspx
National Partnership for Women & Families, Social Security, Poverty & Old
Age
http://www.nationalpartnership.org/site/DocServer/SocialSecurityPovertyOldAge.pdf?docID=1089
U.S. Census Bureau, American Community Survey
http://www.census.gov/acs/www/