The economic conditions of older adults are influenced by several factors. Many older adults own homes outright and have paid off mortgages, limiting their housing costs. Those receiving pensions and qualifying for tax breaks are better off financially. While income from programs like Social Security and Medicare help cover costs of living, it can be difficult for older adults to keep up with changing assistance programs. Most older adults live independently either alone or with a spouse, though some require higher levels of care provided by assisted living, nursing homes, or other specialized facilities that balance independence with needed services. Housing arrangements must consider an individual's needs, finances, and ability to safely live independently.

1. Retirement Living/
Home/ Village

2. FACTORS THAT INFLUENCE THE ECONOMIC
CONDITIONS OF OLDER ADULTS
• House bought when cost and inflation is low. If mortgages, housing cost are limited to taxes, maintenance
and utility bills are paid.
• Those who receive pensions.
Qualified for several tax breaks:
1. Most older adults pay no Social Security tax compared to younger working adults
2. Social Security and government pensions are exempted from tax
3. Taxpayer older than 65 years can have additional tax deduction
4. One time capital gains tax exclusion applies when house is sold

3. Qualified for government income programs
1. Income from Social Security exceeds the program contributions
2. Medicare, covers 50% of medical costs
3. Social Security, SSI, Medicare, housing programs, energy assistance give annual $10,000 per adult
• Often it is difficult for adults to keep current and up to date due to assistance programs changing.
• Nurses are usually called to assist with paperwork, to provide emotional support through frustrations and
arrange transportations to appropriate agencies.
• Nurses working in community must be aware of agencies to provide appropriate assistance and referral of
older adults
• Those working in hospitals and nursing homes should initiate the referrals to social workers or other
professionals need be.

4. Wealth
• Often older people receive less cash yearly from Social Security and pensions.
• Frugal lifestyles and self-reports of being “poor” should be viewed cautiously.
• Approximately 81% of households headed by a person 65 years of age own their homes
• Of these homes, 65% are owned outright.
• In 2011, median values of homes owned by older persons was $150,000 (with median purchase price of
$55,000) which a home is usually a older persons largest asset
• Many prefer not to sell their house due to fear of having nowhere to live, they prefer “house rich and cash
poor”.
• Economic well being is measured in terms of income which is amount of money a household receives on
weekly, monthly or yearly basis.
• However not a reliable indicator of financial security, generally older adults have more discretionary income
(money left after paying necessities) than younger people which have higher non-discretionary demands.

5. Housing Arrangements
• Most older adults either live with a spouse or alone. Less than 3% live in senior housing with supportive
services.
• Approximately 3.6% of all older adults are institutionalized, this percentage increases with age. Only 1% of
65- to 74-year-old individuals are institutionalized. This rate increases to 3% with 75 to 84 years of age and
reaches 11% with people older than 85 years of age.
• Despite physical or economic difficulties, older adults tend to keep their homes since it represents
independence and security.
• The physical exertion and emotional trauma involved in moving is intimidating, even overwhelming for an
older adult.
• For some, keeping the family home not a sensible option.

6. • Many own homes in central cities with high crime rates, expenses of high property tax and ongoing
maintenance costs presents excessive strain on adults with limited finances
• Home maintenance such as housecleaning becomes difficult with advancing age or illness and ownership
may require more effort in terms of money and time, however some struggle to remain independent and
keep their home.
• Some individuals remain in their own houses and refuse to leave if it is safe for them, they can cope however
with help from family, friends or neighbors.
• However, with life-threatening situations despite poor living qualities, poor plumbing, heat, food, adults may
still stay within the home.
• Families, healthcare professionals, social services can step in and help. Some adults also recognize the
problem and decide to move to apartments, condominiums or those that are in keeping.

7. INDEPENDENT/ASSISTED-LIVING CENTERS
- combine privacy with easily available services, most consist of private apartments, either purchased or
rented. For extra charges, with meals in restaurant styled dining rooms, receive laundry and house keeping
services. Different levels of medical field are available. Also with health care services, hygiene, medication
administration, preventive health. With many centers having activity rooms, hobby centers, lounges and etc.
Most assisted living facilities are privately operated and cost significant, far cheaper than nursing home care.

8. LIFE-LEASE/LIFE-CONTRACT FACILITIES
- for large initial investment and substantial monthly rental, service fees, the older couple or individual is
guaranteed a residence for life. Independent residents occupy apartment units. Extended-care units are either
attached or located nearby the complex for resident requiring nursing services. If one spouse needs care, the
other may continue to live in the apartment and easily visit the cared person. When the occupants die, the
control of apartment reverts to the owner of the facility. Despite the cost being high and out of range others
find this option appealing because it meets the need for independence, socialization and services

9. Government-subsidized housing units
- may be simple apartments without any special services, or they may have limited services, such as
access to nursing clinics and special transportation arrangements. Most communities are finding that
the demand for these facilities exceeds the availability. Waiting lists with up to 2-year delays are
common; some communities have started awarding the housing via lotteries.

10. Group housing plans
- in this type of arrangement, two or more unrelated people share a household in which they have
private bedrooms but share the common recreational and leisure areas, as well as the tasks involved
in home maintenance.

11. Community based residential facility
(CBRF)
- this type of facility provides services such as room and board, help with activities of daily living,
assistance with medications, yearly medical examinations, information and referrals, leisure activities,
and recreational or therapeutic programs.

12. Nursing homes
- provide room and board, personal care, and medical and nursing services. They are licensed by
individual states and regulated by both federal and state laws.
• 3 levels of care provided by nursing homes:
• Skilled care is daily nursing care, including medication administration and skilled treatments or
procedures that require the expertise of licensed nurses.
• Intermediate care describes professional care that is not required on a daily basis. It is a step
down from skilled care.
• Custodial care is the next step down and refers to care that is considered non-skilled, personal
care, such as assistance with activities of daily living (ADLs).

13. Specialty care facilities
- such as residences designed to meet the special needs of people with Alzheimer disease or other
memory loss and their families are gaining in popularity around the country.

14. References
• Administration on Aging: A profile of older Americans: 2011, 2012.
www.aoa.gov/Aging_Statistics/Profile/2011/8.aspx.
• Aged Care Campaign: Nurse led innovation in aged care leads to top
award, Aust Nurs J 17(4):6–7, 2009
• Centers for Medicare and Medicaid Services: National health
expenditure data: NHE projections 2011-2021, 2013.
www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-
and Reports/NationalHealthExpendData/Downloads/Proj2011PDF.pdf.
• O’Brien S: How baby boomers will change retirement. Part 1: Many
baby boomers plan to mix work and play, 2010.
http://seniorliving.about.com/od/retirement/a/newboomerretire.htm