Seniors of Color Hit Hard by Economic Insecurity

Asian Journal
Miko Santos

Jan, a stately elderly woman of 65, had it good. She had a lucrative income which she invested in a lovely two bedroom apartment in a good neighborhood. She did everything by the book to ensure her retirement.

Now she lives in a group home in a room shared with 8 other women. She subsists on a measly $100 per month. Far from being enough to cover her daily subsistence and even more so for her medical needs. She lost it all in what would be the US’ worst financial crisis since the Great Depression.

“I would like to know what you are doing about it,” Jan states angrily at a forum hosted by the Greenlining Institute to address the growing economic crisis facing the elderly. “I did everything right, I prepared for my future and this is where I ended up.”

Jan is not alone in her dilemma.

In a Health Policy Research Brief prepared by INSIGHT, Center for Community Development, there are nearly half a million elders in California alone that could not make ends meet. More than one-fourth of Californians age 65 and older lived alone and half of them had incomes below the Elder Index which measures how much income is needed for a retired adult age 65 and older to adequately meet their basis needs including housing, food, out-of-pocket medical expenses, transportation and other necessary spending.

In LA County the Elder Index is pegged at $23,000 per month and over 312,000 elders are trying to survive below this index.

“Economic insecurity for the elderly is caused mostly by the high cost of basic necessities and inadequate income prompting them to make untenable choices detrimental to them,” said Dr. Brad Bagasao, Program Development Director for the Filipino-American Service Group, Inc. (FASGI).

Elders of all ethnicities are struggling to meet the high costs of living in LA. The one hit most are the elders of color, who typically earn less than white people throughout their working lives and who often don’t have pensions and 401Ks to supplement their Social Security income.

“It doesn’t help that California’s financial deficit is forcing Sacramento to cut off essential programs for the Elderly,” added Laura Trejo, whose Department of Aging is one of those considered to be cut.

Financial abuse of elderly people is increasing as more seniors are being lured into investments or agreements that are unsuitable or outright frauds.

Assemblymember Mike Eng, 49th Assembly District, relates his own experience regarding the economic vulnerability of the elderly.

“My mother was somehow approached by someone who convinced her, due to her financial insecurity, to sign a power of attorney which basically put all her financial assets in the power of one person who apparently refuses to disclose what the plans will be and where the assets are,” Eng said.

“It is this lack of economic literacy which many people are preying on,” added Eng.