Elder Law of Michigan : Additional Programs : Elder Economic Security Initiative

A Luncheon on Elder Economic Security

On October 28, 2009, over 60 members of the Michigan Legislature and their staff met over lunch with Elder Law of Michigan, AARP and the AARP Foundation to discuss the economic situation of older adults in Michigan. The event featured new information on the cost to retire in Michigan segmented by county, home type, family size and health status, provided by the Elder Economic Standard Index^TM.

Participants commented on the value of the information and appreciated the opportunity to think about the difficult circumstances that many of their constituents face. "I understand that it can be really hard for an older adult to return to the workforce, especially right now when jobs are scarce. I didn't really understand how difficult it would be to get by on social security alone," commented one participant. "It is eye opening, and little scary," said another.

Elder Law of Michigan staff are available to meet one on one with Legislators who were unable to attend on October 28. "We want everyone to understand that the down turn in the economy has consequences for all our citizens, including 'retirees.' A fixed income no longer means that older adults are getting by financially and living with their most basic needs met," said Kate White, Executive Director of Elder Law.
To request a meeting or more information, please contact us.

Elder Economic Security Standard Index^TM

The weak economy makes it increasingly difficult for older adults in Michigan to meet their basic needs and live with dignity and economic security in retirement. This is particularly true for people age 65 and older who are no longer working. For many on a fixed income, the actual cost of living is rising faster than incomes or investments. A growing number of families or households with people age 65 and older in Michigan have more expenses than they have income or savings to cover.

Elder Law of Michigan in partnership with a board coalition of aging and advocacy organizations, including Wider Opportunities for Women and AARP Michigan, unveiled the Michigan Elder Economic Standard Index. The Elder Economic Index is new, Michigan specific data that will estimate the essential annual costs of living for adults age 65 and older living independently in their own homes. It can be used in personal, local and regional planning and guide policy and resource decisions at the local, state and federal level.

What is the Index and why is it important?

The Index is data that can be used like a family budget to gauge the costs to retire. It will show, in table format, the essential costs older families will incur so that they understand current market rates for housing, health care, long term care, utilities, food and transportation. County level data and variable factors such as family size, health status and type of home (owning or renting) are part of the Index. Estimates on the costs of community-based long term health care for older adults by level of care needed (low, medium and high) is a critical part of the Index. It will also demonstrate the market rate costs of in-home long-term health and care services.

Planning for retirement is complicated for families of modest means. The Index is a tool that can be used by these families and their caregivers to budget, plan and work toward the most basic economic security in retirement.

The Index is unbiased, trusted information that can guide decisions on:

When to retire or whether to take a buy out?

Will part time work or continued employment for pay be necessary after age 65?

How much does a family need to budget for food, housing, medical care, utilities, and other essential needs to make ends meet?

What will long term health care cost if or when an older adult begins to need assistance with daily activities?

Additional Information and Materials

The Cost of Retiring in Michigan (The Walt Sorg Radio Show, July 16, 2009)
Listen now:

More on the Index

The Index does not include in-kind supports provided by family or friends.
The Index does not include "extras" such as eating out in restaurants, entertainment/recreation, gifts at holidays or birthdays, vacations, or other activities that can meet our social needs for community, connection and enjoyment.

Often, the Federal Poverty Level is used as a guide for providing programs and services to those in need. The research conducted by the Gerontology Institute at the University Of Massachusetts Institute Boston to create the Index reveals that to meet a person's most basic needs after age 65, that they need substantially more money than the Poverty Level. The Poverty Level is a measure of how poor people are (or of deprivation),not a measure of how much someone needs to meet their most basic human needs (or sufficiency).

If you would like to participate in the work around the Elder Economic Standard or know older adults who are experiencing hard times and would like to tell their stories, please contact Kate White at 517.853.2375 or kwhite@elderlawofmi.org.