ABSTRACT
In order to discuss the adequacy of the economic resources of the elderly we must first determine the specific characteristics and needs of this group. Using age 65 and above as our definition for old, we find a group of persons who generally have no children remaining at home, who are retired, who own their homes, and whose expenses are likely to be lower than they were during their middle years-except for medical expenses, which are likely to be higher and to climb steadily as one ages. Schulz (2001) has observed that when a person gets very old, he or she is likely to experience exceptionally higher expenditures for chronic illness, hospitalization, and sometimes institutionalization. Declining health and increasing medical expenses can destroy savings and raise the economic needs of older Americans dramatically. Further, the newly retired, sometimes referred to as the young-old, are likely to have more adequate incomes than the old-old (those 75 and above).
