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Analysis of Wealth Disparities and Longevity Among Older Adults

A recent report from the National Council on Aging (NCOA) and the LeadingAge LTSS Center at UMass Boston sheds light on the alarming disparities in health outcomes among older adults based on wealth. The findings, drawn from a nationally representative dataset, reveal a stark reality: older individuals earning $20,000 or less annually die, on average, nine years earlier than their wealthier counterparts, who earn over $120,000 a year. This disparity in life expectancy is indicative of a broader trend affecting older Americans as the wealth gap widens.

The Data Behind the Findings

Between 2018 and 2022, NCOA's analysis documented mortality rates revealing that older adults within the lowest 60% wealth brackets had rates of 17.6% to 21%, almost double that of individuals in the top 20% wealth tier. Particularly concerning is the data showing that those in the bottom 20% experience a loss of nearly a decade in life expectancy compared to the wealthiest older adults. These figures underscore the urgent need to address the socioeconomic factors impacting health outcomes.

The financial insecurities facing older Americans are staggering. An estimated 19 million, or 45% of older adult households, cannot meet basic living expenses as calculated by the Elder Index. Moreover, a shocking 80% of these households, approximately 34 million, lack the financial stability to withstand life-altering events such as widowhood or serious illness, which can also precipitate long-term care needs.

Voices of Concern

Ramsey Alwin, President and CEO of NCOA, expressed grave concerns over these findings: "It is shocking and unacceptable that in the United States in 2025, poverty steals almost a decade of older Americans' lives. Millions of older Americans who worked hard and played by the rules are dying early simply because they lack sufficient financial resources. We must advocate for better policies now so that everyone, not just the wealthy, has the opportunity for a long life."

The COVID-19 pandemic significantly exacerbated these issues, deepening both financial and health risks for older adults, specifically for those already in lower wealth brackets. Notably, while the wealthiest 20% improved their financial standing during this period, many households at the lower end of the economic spectrum saw little to no improvement, further entrenching inequities.

Long-Term Care and Financial Insecurity

Long-term services and supports (LTSS) remain central to older adult financial insecurity. The data reveals that over half of all seniors will require LTSS at some stage of their lives, yet crucially, Medicare does not offer coverage for these services. The average yearly cost for a private room in a nursing home exceeds $100,000, an expense that is completely out of reach for the majority of households. This economic strain contributes significantly to the trends outlined in the report.

Researchers have highlighted that, while wealthier households have seen their home equity increase, many middle-income households experienced declines in the value of their homes between 2020 and 2022.

Dr. Marc Cohen, co-author of the report and Co-Director of the LeadingAge LTSS Center at UMass Boston, emphasized the urgency of these findings: "Too many older adults are living on the edge financially, and this instability is literally cutting their lives short. This report explicitly illustrates how a lack of resources can have life-and-death consequences if we do not initiate policy interventions."

Conclusion

The NCOA's analysis from the Health and Retirement Study incorporated data from a longitudinal panel capturing about 10,000 households across the United States. By categorizing households into wealth quintiles, the report provides a comprehensive overview of the critical relationship between wealth accumulation and mortality rates amongst older adults. As this inequality continues to evolve, comprehensive strategies are essential to improve the living conditions of older adults and work towards closing the wealth gap impacting their health and longevity.