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Click image for full size Other articles in Part 3 Working poor dominate poverty rolls Graphs: poverty rate trends; poverty and education; geographic area Suburbs thrive; cities, rural area fall behind Women and children most likely to be poor Most poor people don't stay that way Graphs: poverty rate by race, ethnicity; age; household Oregon's children and poverty Disability and chronic poverty Poverty and minorities

Elders face poverty as they grow older story by Theresa Novak In 58 years together, Francis and Tom Pickett have never thought of themselves as poor. The couple endured the Dust Bowl and World War II. They had a son and a daughter. Francis taught music to elementary school students, kept house and raised her children. Tom farmed, built bridges and worked hard to keep the family fed and sheltered. "We learned how to get along on nothing," Francis said. "We never lived high and handsome. We just knew how to manage." At 93, the Picketts still live on their own in a modest apartment near the Corvallis library. For a long time they beat the odds against the single biggest factor that transforms a financially comfortable 65-year-old into a destitute 85-year-old: Time. "A lot of people become poor just because they outlive their money," said Becky Weidanz of the Governor's Commission on Senior Services. Many recently retired Oregonians start off financially secure because they are supported by a combination of savings, pensions, Social Security and other assets. Many still enjoy good health at 65 or 70. In contrast, people in their late 70s and beyond often have had their assets eroded over time, especially by medical expenses. Among this group, poverty rates are higher than among people who are more recently retired. So it was with the Picketts. Francis Pickett's work as a teacher brought her limited Social Security and pension benefits. So when a lifetime of heavy work sent Tom to the hospital 12 years ago for back surgery, the Picketts needed more than their Medicare health insurance provided. They had to turn to Medicaid, a program for low-income people, to help cover their high medical costs. They accepted the aid with gratitude-and a few qualms. "It's hard to live like this out of someone else's pocket, but we never figured on living this long," Francis Pickett said. With the future of Social Security uncertain, the Picketts are concerned about what will happen when their 55-year-old daughter reaches retirement age. It is a concern shared by a nation that anticipates an enormous drain on Social Security and Medicare and Medicaid funds when the large population born between 1946 and 1964 reaches retirement age. "With the number of elderly Americans set to double by 2030, the baby boom will become the senior boom," President Bill Clinton said in his 1999 State of the Union Address. "Today, Social Security is strong," Clinton noted. "But by 2013, the trust fund will be exhausted, and Social Security will be unable to pay out the full benefits older Americans have been promised." Despite widespread publicity about the threat to Social Security's solvency, most Baby Boomers are counting on its continued availability. Wiedanz said it is a common myth that many Baby Boomers are establishing Individual Retirement Accounts (IRAs) so they won't need to depend solely on Social Security for their post-retirement income. "We found that simply wasn't true," Wiedanz said. Only about 10 percent of Baby Boomers are setting aside money through IRAs or other savings or investments. In fact, one-quarter of Americans believe their best financial strategy to prepare for retirement is to buy lottery tickets, not long-term savings or investment, according to a 1999 national survey by the Consumer Federation of America. With so many people apparently relying on Social Security, losing that fund would be devastating to older Americans. According to the Washington, D.C.-based Center on Budget and Policy Priorities, Social Security is the primary buffer from poverty for 46.7 percent of the elderly population who otherwise would fall below the federal poverty level. In dollars, the federal poverty level stands at less than $8,240 year for a single person over 65-about $640 a month. The poverty rate for an elderly couple is about $11,000 a year. How do 17 percent of older Oregonians end up with incomes below the federal poverty level? They may have stories similar to that of Evelyn Duncan. Born in 1908, Evelyn Duncan married during the Depression. She and her husband had four children. Evelyn Duncan was a wife and mother. She didn't drive, handle money, or learn how to type. After her husband died in 1971, Evelyn survived on Social Security and a small inheritance. When the inheritance ran out, Evelyn joined the ranks of Oregon's low-income elderly. Accustomed to being the head of her family, not a dependent, Evelyn didn't want to ask her children for help. "She never complained about anything," said James Duncan, her 55-year-old son. "It just wasn't done when she was growing up." Duncan, a former Boeing engineer, helped his mother obtain medical and housing benefits for low-income seniors. She now lives in an elder care facility where she enjoys her surroundings. As Duncan became more familiar with the effort required to secure basics for elders such as his mother, he became increasingly involved in senior issues. Duncan now serves as head of the 17-member Portland/Multnomah Commission on Aging. The group helps seniors live more comfortable, secure lives. They work to change laws and regulations on behalf of the elderly. Becky Werhli, the executive director of Elders in Action, said the nonprofit agency has served the greater metropolitan area of Portland as a publicly funded agency for more than 30 years. For example, the agency is working with the Portland City Council to preserve apartments in downtown Portland as elderly housing. "Oregon is at the head of the nation (where help to elders is concerned)," Werhli said. "No doubt about it." For example, Oregon leads the nation in providing community-based care for frail seniors. As a result, over the past decade the state's nursing home population has dropped despite an increase in the senior population. Seniors do not pay state taxes on Social Security income. Unlike other Oregonians, they can deduct all of their dental and medical expenses on their tax returns. Duncan said increased activism by all Oregonians on behalf of seniors would pay off eventually for everyone. "We all have to help on this," he said. "We're all getting old."   Article 8 of 10 in Part 3   back to top

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