Eighty percent of people 60 and older continue to have very few resources to pay for long-term care or withstand financial emergencies, according to updated analysis of the situation nationally.

While older adults’ incomes and the net value of their homes increased slightly from 2018 to 2020, their financial assets and total wealth decreased.

“This is a snowballing crisis,” said Ramsey Alwin, president of National Council on Aging (NCOA), which conducted the analysis in partnership with the University of Massachusetts-Boston.

“At the same time that 11,000 people are turning 65 every day for the next several years, a growing number of older adults are facing financial stress now and will not be able to afford the care they will need in the future,” Alwin said. “Congress needs to hear this alarm bell and support programs that help all Americans age with health and dignity in their communities.”

A report titled “Increases in Older Americans’ Income and Household Assets Still Cannot Support Most During Financial Hardship” compares the income, housing value, retirement, and other savings of people 60 and older with the cost of paying for long-term care and with the Elder Index, an online tool that shows how much money older adults need to live independently. Among the findings in the report:

  • The bottom 20 percent of Americans 60 and older (15 million households) have no assets. In fact, some are in debt. This group had a median income of $18,000 in 2020 and is facing economic insecurity. Almost 90 percent of them had household incomes below the Elder Index level.
  • About half (49 percent) of those 60 and older (a little over 27 million households) have an average income below what they need to cover their basic needs, as calculated by the Elder Index.
  • Despite older adults’ preference to age in place, 60 percent can’t afford two years of in-home long-term services and supports (LTSS).

“These findings certainly show that despite gains in income, many millions of older adults continue to live on the edge,” said Dr. Marc Cohen, co-author of the report and co-director of the LeadingAge LTSS Center at UMass-Boston. “This reality highlights just how important it is to make sure that our social safety net programs are preserved and strengthened.”

LTSS is one of the most significant costs for older adults. It ranges from assistance with activities such as bathing and dressing to medical care in a skilled-nursing facility. Over half of adults 65 and older will need these services for less than two years, and about one in seven will require care for more than five years.”

In 2023, the median yearly cost of a home healthcare aide was $75,504 and a private room in a nursing home was $116,800, Cohen said.

The COVID pandemic added additional pressures to employment, income, and savings. During the pandemic, 11 percent of people 65 and older lost their jobs. With an increase in fatalities due to COVID or related complications, widowhood was a likely source of financial shock for many. Tdhose factors put additional pressures on already significant and persistent long-term care costs, according to researchers.

Medicare doesn’tt pay for LTSS, so older adults and their families bear the financial risk directly. Medicaid covers nursing homes, but only after older adults spend down their assets to less than $2,000.

According to JAMA Network,  over a 20-year period, more than 25 percent of adults 50-plus will experience a shock resulting in a 75 percent or more drop in net wealth. Among adults 70 and older, more than two-thirds will experience at least one negative shock with financial consequences over a nine-year period.

Americans want a solution, Alwin said, citing NCOA’s ”What Women Say survey of women 25 and older. It found that 94 percent of respondents across political and demographic lines support improving Medicare and Medicaid to better ensure that older adults have the option to receive care at home rather than in a nursing home. In addition, 96 percent of respondents support a tax break for family caregivers to help cover their out-of-pocket costs, and 92 percent support creating a new government program to pay for some long-term care costs.

Washington has WA Cares Fund. Workers can pay into it for long-term insurance benefits of a maximum of $36,500. The program is administered by the state.

Source National Council on Aging

COMMENTARY

By Christina Clem

When the Toledo Community Library noticed a leaky roof that threatened the community-funded and operated facility, it turned to AARP to help patch things up. The library was a recipient of a Community Challenge grant in 2024 to repair the roof — one of four 2024 grants awarded in Washington.

At AARP, we know building great communities takes time, but tangible improvements can spark long-term change, as well as keep cherished community resources around for all to use. That’s why AARP launched the Community Challenge grant program to fund projects that foster communities for all ages. The program is back for its ninth year and accepting applications. 

The program focuses on tangible change, community engagement, and a quick-action timeline, helping selected grantees fast-track ideas and replicate promising practices. Previous projects have demonstrated the ability to attract additional funds or support from public and private funders, encourage innovation, overcome local policy barriers, and receive greater awareness and engagement. 

Since 2017, the program has funded over 1,700 projects nationwide, including 29 in Washington. From shared garden beds and accessible transit options to revitalizing neighborhood parks and revamping community buildings for ADA compliance, there are many ways to improve your community.

Grants are open to 501©(3), 501©(4), and 501©(6) non-profits and government entities and can range from several hundred dollars for small, short-term activities to several thousand dollars for larger projects. In 2025, the program will accept applications for three different grant opportunities designed to help communities become more livable for all residents, especially those aged 50 and over:

  • Flagship grants. This is AARP’s traditional Community Challenge grant program. Grants will not exceed $25,000. They will support projects that improve public places, transportation, housing, digital connections, and community resilience.
  • Capacity-Building Microgrants. These $2,500 grants are combined with additional resources, such as webinars, cohort learning,, up to two hours of one-on-one coaching from leading national non-profit organizations, and AARP publications. This opportunity will accept applications for projects that support disaster preparedness training, walk audits, bike audits, and HomeFit Guide modifications.
  • Demonstration grants. This opportunity funds demonstration projects that encourage replication of promising local efforts. Grants tend to fall between $10,000 and $20,000 and won’t exceed $25,000. Applications can be for projects that enhance pedestrian safety with funding support from Toyota Motor North America, expand high-speed internet (broadband) access and adoption with funding support from Microsoft, reconnect communities divided by infrastructure, and implement housing design competitions.

The application deadline for the 2025 grant cycle is March 5. All projects must be completed by Dec. 15. Visit aarp.org/CommunityChallenge to apply and learn more.

The AARP Community Challenge grant program is part of AARP’s nationwide Livable Communities initiative, which supports neighborhoods, towns, cities, and counties across the country in becoming great places to live for people of all ages. We believe communities should provide residents of all ages, especially 50 and older, with safe, walkable streets; affordable and accessible housing and transportation options; access to needed services; and opportunities to participate in community life. 

Christina Clem is an associate state director of communications for AARP Washington.

School measures on ballot

Voters in two Pierce County school districts are deciding the fates of funding requests in a special election.

Voting ends Feb. 11, the dates when ballots must be deposited in official ballot boxes or mailed to the county elections department.

Puyallup School District is asking for bonds to replace aging school buildings and enhance safety and reduce overcrowding in certain schools. Passage of the measure requires a 60 percent majority of votes.

Yelm Community Schools is seeking approval (with a simple majority)  of a levy for educational programs and district operations. The district covers parts of Thurston County, where voters are also helping decide the levy’s outcome.

Information on their respective ballot measures is available from the school districts. Information about the election, including questions about ballots, is available from the county at 253-798-8683 and elections@piercecountywa.gov.

Wards Lake Park in Lakewood is closed until this November while it’s getting new trails and other improvements.

A $3.2 million contract awarded by the City Council to Redside Construction will pay for what officials call “significant changes” to the park located in the northeastern part of the city. They include and handicap-accessible loop trail with a 170-foot-long bridge over the lake, a new playground, picnic shelter and restroom, a bird blind overlooking the lake, public art, increased parking, and an off-leash dog park.

Wards currently covers 22 acres and already has trails for walking, a fishing dock, and a playground. It’s one of 15 parks or trail systems managed by Lakewood.