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NJ Elder Economic Security Index

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In 2009 NJFA released the first NJ Elder Economic Security Index Report. This report provided the cost of living for people over 65 in NJ. Not only did it determine how much seniors need to meet their basic needs in NJ, but also broke down the data for all 21 counties in NJ.

 If you are not familiar with the Index, it breaks down the cost of living for NJ seniors in several categories- Housing, Transportation, Food, Healthcare and Misc. It also looks at these costs for both single elders and those living in a two person household. The Index goes even further to differentiate the costs for renters, homeowners with a mortgage and homeowners without a mortgage. With the release of the report in 2009 this opened the eyes of many policymakers and advocates as to the high cost of living for seniors. It also highlighted the issue of what senior’s income was compared to their cost of living. The accompanying Policy Brief also looked at the benefit programs and public supports that are available

In 2012 NJFA released an Index update. Not only did NJFA update the numbers but the new report also included a demographics study. The demographics study told us how many seniors in NJ were living below the Elder Index, not just in the state of NJ, but in each county as well.

Of single and two person households over 65 in NJ, 42.6% of them live below the Elder Index. Because the Elder Index is based on the costs for either a single elder or an elder living in a two person household, the demographic study misses those who are living in a household with 3 or more people.

If in 2012 42.6% of elderly single and two person households were living below the Index in NJ, what does that mean for 2013 and beyond? If we look at the change from 2009 (the first NJ Elder Index) and 2013, some seniors have seen more than a 30% increase in their cost of living. In 2009 the cost of living for a single senior renter in NJ was estimated to be $25,941. In 2013 its $28,860, that’s an 11.25% increase in costs without an increase in income. Some seniors may find it necessary to seek employment in retirement.

Not all seniors will be able to find employment or may not even be able to work. This is where benefit programs enter the picture. Programs like PAAD or Senior Gold can help cut the cost of prescription medications. Lifeline and LIHEAP can help them to pay their utilities bills. SNAP (formerly food stamps), Farmers Market Coupons and other nutrition programs will make it easier to access healthy foods. The highest cost for seniors is their housing. So naturally affordable housing would make the biggest impact for a senior who is below the index. However, affordable housing is difficult to come by. Many seniors are on multiple waiting lists, each kept separately without a way of sharing the information.

This is why NJFA continues to advocate for all services that may benefit seniors. In order to ensure that all of NJ’s seniors can live in the community of their choice, with independence and dignity.

To view the full Elder Index Report, please visit our website at www.njfoundationforaging.org/issues.html

 

 

 

 

NJ-EESI Update

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In 2009, NJFA released a report called, the Elder Economic Security Index (EESI). The Index tells us the cost of living for seniors in all 21 counties in NJ. The Elder Economic Security Standard‚Ñ¢ Index (Elder Index) methodology was developed by the Gerontology Institute at the University of Massachusetts Boston, in partnership with Wider Opportunities for Women(WOW), an advocacy agency in Washington, DC. The Elder Index measures the income required for seniors to meet basic needs without public, private or informal assistance. Measurements are based on existing, credible data from publicly available sources.

 And now, in 2012, WOW has launched a National Database online so that you can see not only the individual state’s numbers, but can compare States and Counties. The database uses the Basic Economic Security Tables™ (BEST) Index and the Elder Economic Security Standard™ Index (Elder Index) to measure the incomes workers and retired elders need to achieve economic security. The BEST and Elder Index present local expenses, savings requirements and economic security incomes by family type, and at the city, county and state levels.

 Not only are the 17 states that have released Elder Index reports available in this new Database, but all 50 states! There are many uses for this data and certainly financial planning or retirement planning has always been one of them, now people preparing to retire can compare costs across the country. It is also a great source for researchers or service providers, looking for data to support projects or compare their state to others.

WOW’s Economic Security Database¬†provides local information on how much families and elders need to make ends meet in one easy-to-use online tool. To view the National Database visit: http://www.basiceconomicsecurity.org/

 To learn more about the NJ Elder Index visit: www.njfoundationforaging.org/issues.html

We are pleased to announce support from the Silver Century Foundation to delve even deeper into the NJ EESI. With this support, we anticipate releasing a detailed profile of seniors living on the edge of poverty in NJ. This information should be released in June 2012. Stay tuned for more information about NJ EESI in the near future.

Do you know how much you need to retire in New Jersey?

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A recent survey by the Employee Benefit Research Institute reports that 43% of workers say they have less than $10,000 in savings. The annual survey, Retirement Confidence Survey, included 1,153 respondents age 25 and older who were employed or retired. 27% indicated they had less than $1,000 in savings. On top of that 24% reported that they had to delay retirement. The survey did not account of the value of homes or defined-benefit pension programs.

They also found that only 69% of workers have reported saving for retirement. Research Director and co-author of the survey, Jack VanDerhei stated that the current economic situation is not the only factor, but that people don’t plan soon enough. The survey also reveals that only 46% of respondents attempted to calculate how much money they’d need in retirement, meaning over half of the respondents have not even begun calculating what they’ll need to retire.

 Planning for retirement sooner rather than later seems like a good idea. But where do you start? It can be a difficult and overwhelming task. You may need to consult a financial planner, but you can also start by looking at the NJ-Elder Economic Security Index.

The NJ Elder Index can help to determine how much an individual will need to retire in your community. This is because the Index shows the cost of living for someone over 65 in all 21 counties in NJ. It is comprised of the costs of housing, food, transportation, healthcare and a miscellaneous category. The Index also reflects the expenses of renting versus owning a home and also the difference in having mortgage or not. The data is also shown for singles as well as couples in each county.

The Statewide Index shows that a single renter in New Jersey needs $25,941 to meet their basic expenses, while a single homeowner with a mortgage would need $33,570. Some findings may point to key elements for retirement planning. Notably, those 65 and over with a mortgage could be paying twice as much as someone who does not have a mortgage. Housing is the biggest expense in an elder’s budget with healthcare being a close second.

An important contact for Seniors to learn about local resources is their county Office on Aging. To find the Office on Aging in your county visit, http://www.njfoundationforaging.org/services.html

Knowing what some of the costs are can help, but certainly the recent difficult economy has had an impact on the ability to save for retirement. Many New Jerseyans are struggling to make ends meet, let alone save for the future.

To view information from New Jersey Elder Economic Security Index follow the links below. If you have questions or need more information, contact us at office@njfoundationforaging.org or 609-421-0206.

Elder Index

Policy Brief

County Fact Sheets