1. AGING AND SOCIAL WELFARE POLICY Chapter 12

2. Social Welfare Policy and Social Programs: A Values Perspective, by Elizabeth Segal Copyright 2007, Brooks/Cole, a division of Thomson Higher Education According to the U.S. Census Bureau: Older people are sixty-five years old and over One in eight Americans, or 12.3% of the population is old This includes 21 million women and 14 million men

3. Social Welfare Policy and Social Programs: A Values Perspective, by Elizabeth Segal Copyright 2007, Brooks/Cole, a division of Thomson Higher Education In 2000 there were 35 million people over 65 years of age 18.4 million were between the ages of 65 and 74 12.4 million were between the ages of 75 and 84 4.2 million were 85 and older

4. Social Welfare Policy and Social Programs: A Values Perspective, by Elizabeth Segal Copyright 2007, Brooks/Cole, a division of Thomson Higher Education The U.S. Population is Aging Fewer children are being born Between 2010 and 2030 the baby-boom generation will begin turning 65 Baby-boomers, born between 1946 and 1964, are the largest age cohort in the U.S. By 2020, 20% of the population will be old By 2050, 25% of the population will be old Average life expectancy is 77 years

5. Social Welfare Policy and Social Programs: A Values Perspective, by Elizabeth Segal Copyright 2007, Brooks/Cole, a division of Thomson Higher Education Issues of concern Age Discrimination - ageism is prejudice against people based solely on age Elder abuse - hidden and underreported Alzheimer’s Disease and other forms of dementia,4 million older Americans have Alzheimer’s, and by 2020 may be as many as 12 million Adult children as caregivers

6. Social Welfare Policy and Social Programs: A Values Perspective, by Elizabeth Segal Copyright 2007, Brooks/Cole, a division of Thomson Higher Education Social Programs Social Security - Old Age Insurance Medicare For those who are poor, Medicaid and Supplemental Security Income

7. Caring for Seniors How will we care for people as they age in our society? Who will do the caregiving?

8. Retirement How prepared are people for retirement?

9. Social Welfare Policy and Social Programs: A Values Perspective, by Elizabeth Segal Copyright 2007, Brooks/Cole, a division of Thomson Higher Education Only about 53% of workers have tried to determine what they will need to save for a comfortable retirement 30% of Americans have not put ANY money aside specifically for retirement Of those with 401k coverage available (optional retirement savings through employer) 25% do not participate Are people saving for retirement?

10. Social Welfare Policy and Social Programs: A Values Perspective, by Elizabeth Segal Copyright 2007, Brooks/Cole, a division of Thomson Higher Education Social Security: An important part of retirement The average American retiring at 65 can expect to spend 18 years in retirement The average social security payment to retired individuals in 2000 was $844 ($10,128 per year) In 1999, 91% of people 65 and older received social security income Social security recipients automatically qualify for Medicare coverage

11. Social Welfare Policy and Social Programs: A Values Perspective, by Elizabeth Segal Copyright 2007, Brooks/Cole, a division of Thomson Higher Education Social Security keeps people from living in poverty Half of all elderly people had incomes below the poverty line BEFORE receiving social security benefits - after receiving Social Security benefits, only 12% remained poor. The majority of those helped were women. More than 60% of the elderly derive the majority of their income from Social Security

12. Social Welfare Policy and Social Programs: A Values Perspective, by Elizabeth Segal Copyright 2007, Brooks/Cole, a division of Thomson Higher Education The social insurance aspect of Social Security Social Security provides a secure and predictable financial guarantee backed by the federal government Privatization would mean relying on the unpredictable “roller coaster” of financial markets

13. Social Welfare Policy and Social Programs: A Values Perspective, by Elizabeth Segal Copyright 2007, Brooks/Cole, a division of Thomson Higher Education Will Social Security be there when we retire? Financial difficulties, that is more will be paid out than will come in through tax revenues, are estimated to begin in 2016 Trust Fund surplus will need to be used, and that should last until 2038 To ensure solvency beyond the next 36 years, changes will have to be made

14. Social Welfare Policy and Social Programs: A Values Perspective, by Elizabeth Segal Copyright 2007, Brooks/Cole, a division of Thomson Higher Education What are the choices? Raise payroll taxes (from current 6.2%) Raise ceiling on amount of income taxed (first $87,000 of earnings in 2003) Raise retirement age (which will rise to 67 years of age by 2027, anyone born after 1960) Lower benefits