Will the real economic security please stand up? The Elder Standard versus the federal poverty line in California

The new Elder Economic Security Standard™ (Elder Standard) for California documents that the federal poverty guideline covers less than half of the basic costs experienced by adults age 65 and older. While the Federal Poverty Guideline (or poverty-line, “FPL”) is uniform nationally, the Elder Standard is based on county-level costs experienced by older adults, including health care costs, food, housing, transportation, and miscellaneous. California's Elder Standard for a retired person age 65 or older who rented in 2007 was over $25,000 per year in eight urban coastal counties, while it was in the $17,500-18,500 range in eight rural inland counties. In contrast, the FPL was $10,210 and California's SSI payment maximum was $10,272. This presentation documents how the basic costs calculated for a decent standard of living vary by county, but are always substantially more than the FPL. This work highlights the tradeoffs that low-income older adults face in having to choose between adequate nutrition, health care, and housing when their incomes are below the Elder Standard. The implications of an inadequate FPL cover a wide range of public policies such as the Medicare Part D low-income subsidy, food stamps, and Medicaid.