If the total dollar income of the elderly population is divided into equal quintiles or 20 percent shares, we learn that the top 20 percent of all the elderly income is shared among just six percent of the elderly. The bottom 20 percent of elderly income is shared among 34 percent of the elderly. Much will depend on the fate of Social Security and the changes that Congress and the President choose to make. Under one scenario, Social Security will be partially privatized, and thus the strength of the stock market will become linked to levels of economic well-being the elderly can expect. The major factor that determines whether older people are able to lead independent and active lives is their health.
Functional limitations increase as people age.
Only five percent of older people aged 65 to 74 living in the community have a need for assistance with one activity of daily living compared to 9 percent of people aged 75 to 84 and 18 percent of those aged 85 and over. Considering assistance with three or more activities of daily living, only two percent of persons aged 65 to 74 need assistance as compared to four percent of those aged 74 to 84 and 12 percent of those aged 85 and over. It is hard to predict. But we also know that people do not always do what they know is good for them and that obesity is a worse problem now than previously. In terms of policies in the health domain, Medicare and Medicaid are key.