An analysis of where older Americans get their income finds Social Security is a key source, keeping about 15 million above the poverty line, the AARP Policy Institute said.
The analysis of 2012 data found that 84 percent of older Americans, representing 36 million of those 65 and older, received Social Security payments. The average amount of benefits received was $14,229. The average annual income for everyone in the age group was $31,742. But for half of all elderly, the figure was less than $19.604.
For all retirees, Social Security represented 37.7 percent of income, but the varying importance of the benefits was apparent when earners were divided into five groups.
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For those in the lowest 20 percent of earners, benefits from the government retirement program equaled 82.5 percent of total income. For the next lowest group, the ratio was higher, with the figure being 86 percent. For the final three groups, from the middle-income earners to the highest, the figures were 75, 45.6 and 16.1 percent.
Without Social Security, the poverty rate among older adults would rise from 9.1 percent to 44.4 percent, AARP said.
Pensions and retirement savings provided income for 30.1 percent of all older Americans. The average annual income from this source was $17,914, with men more likely than women, 38.2 percent to 23.2 percent, to receive it. The lower 60 percent of wage earners were the least likely to get such payments.
About a fifth, 21.3 percent, earned money from a job. For all groups earnings from a job provided 30.3 percent of income. For the two highest income groups, such earnings were a significant portion of income. Those were closer to the poverty line earned little from jobs.
As far as income generated by personal assets, the percentage of total income in each group rose as total income increased.
Over the last two decades, from 1990 to 2012, the percentage of income derived from Social Security has remained relatively flat, while the share derived from working doubled from 15.3 percent as more older Americans took jobs. At the same time, the share of income from assets dropped from 24 percent to 10.6 percent, mostly because of lower interest rates and the financial crash, AARP said.
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