Estimates of the Income and Wealth of the Elderly Using the Panel Study of IncomeDynamics and the Survey of Consumer Finances and Their Implications for Long-Term Care

摘要

This is the second phase of a study of income and wealth in the aging population.The first phase was a literature review. This study uses two data sets: the Panel Study of Income Dynamics and the survey of Consumer Finances. These are longitudinal studies that follow individuals overtime, and they provide a more realistic appraisal of the actual experiences of this population. Their findings are discussed in three sections: income, wealth and assets and affordability of long term care. In the income section they found that as age increases income declines. This varies by income group. For those individuals in the under $10,000 group, their income remained static or increased; while those with incomes of more than $30,000 experienced a decrease in their income of ten percent or more. Wealth and assets followed a pattern that was found to be similar to the life cycle theory. The report also describes the potential for purchasing long term care insurance and models were developed to simulate the impact of changes in assets over time.