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Wealth of 65 Plus Population Soars, Boomers' Declines

Tue, 08/15/2000 - 11:00pm — Karen Stevenson
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A group of nine federal agencies has conducted a study on the physical, mental, and economic health of the aging population. This survey has revealed a number of interesting characteristics and trends, including a finding that the wealth of the retiree population soared from 1984 to 1999, while the wealth of the pre-retirement Baby Boomers decreased. The biggest decline in household assets during these years was experienced by those in the 45-54 age group, generally peak years for accumulating retirement savings. The 55-64 age group also experienced a decline in household assets, during a time of life when many have been taking early retirement.

The population age 65-74 saw their household assets increase by 74% during this 15 year period, from an average of $111,000 to $190,000, with the sharpest rise, 46%, in just the last five years. At the same time, the group from age 45-54 saw their assets decline by 23%, from an average of $109,000 in 1984 to $85,000 in 1999.

Labor force participation has also changed dramatically over the years. About 90% of men aged 55-61 were still in the work force in 1963, but that dropped to only 75% by 1999. The most dramatic decline was among men aged 62-64, whose labor force participation dropped from 76% in 1963 to only 47% in 1999.

While men left the workforce, women entered it. Labor force participation by women aged 55-61 increased from 44% in 1963 to 58% in 1999.

The report was a collaborative effort of the Administration on Aging, the Bureau of Labor Statistics, the Census Bureau, the Health Care Financing Administration, the National Center for Health Statistics, the National Institute on Aging, the Office of the Assistant Secretary for Planning and Evaluation, HHS, the Office of Management and Budget, and the Social Security Administration.

Older Americans 2000: Key Indicators of Well-Being.

A group of nine federal agencies has conducted a study on the physical, mental, and economic health of the aging population. This survey has revealed a number of interesting characteristics and trends, including a finding that the wealth of the retiree population soared from 1984 to 1999, while the wealth of the pre-retirement Baby Boomers decreased. The biggest decline in household assets during these years was experienced by those in the 45-54 age group, generally peak years for accumulating retirement savings. The 55-64 age group also experienced a decline in household assets, during a time of life when many have been taking early retirement.

The population age 65-74 saw their household assets increase by 74% during this 15 year period, from an average of $111,000 to $190,000, with the sharpest rise, 46%, in just the last five years. At the same time, the group from age 45-54 saw their assets decline by 23%, from an average of $109,000 in 1984 to $85,000 in 1999.

Labor force participation has also changed dramatically over the years. About 90% of men aged 55-61 were still in the work force in 1963, but that dropped to only 75% by 1999. The most dramatic decline was among men aged 62-64, whose labor force participation dropped from 76% in 1963 to only 47% in 1999.

While men left the workforce, women entered it. Labor force participation by women aged 55-61 increased from 44% in 1963 to 58% in 1999.

The report was a collaborative effort of the Administration on Aging, the Bureau of Labor Statistics, the Census Bureau, the Health Care Financing Administration, the National Center for Health Statistics, the National Institute on Aging, the Office of the Assistant Secretary for Planning and Evaluation, HHS, the Office of Management and Budget, and the Social Security Administration.

Older Americans 2000: Key Indicators of Well-Being.