Old Age Dependency

A staff report prepared for the committee that studied old age security in 1935 relied on a few reports done in individual states. One of the more comprehensive surveys was done in New York just prior to the 1929 stock market crash. It determined that 50% or more of the age 65+ population was dependent on relatives or friends (either living with them or getting financial assistance from them to live somewhere else), 2.5% were living in poorhouses or mental hospitals, and 1-2% were living in private homes for the aged. If those percentages were representative of the national experience, that would mean that about 175,000 people age 65 or older were living in poorhouses or mental hospitals and 70,000 were living in nonprofit or proprietary homes. Note that a significant percentage were self-sufficient because they were still working. (Estimates of Institutionalized Population)

Percentage of Older New Yorkers Self-Sufficient in 1929
Self-Sufficient Persons 65 and over Persons 70 and over
Total Self-Sufficient 44% 36%
Still working 29% 17%
Pensions 10% 14%
Living on personal savings 5% 5%

Source: Old Age Security Report

Percentage of Older New Yorkers Not Self-Sufficient in 1929
Dependent Persons 65 and over Persons 70 and over
Total Dependent 56% 64%
Dependent on relatives or friends 49% 56%
In community with public or private charity 3% 4%
In poorhouses or other government institutions 3% 2%
In nonprofit or proprietary homes 1% 2%

Source: Old Age Security Report