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Under New Math, 1 in 5 Seniors Is Poor

Outmoded federal statistics don't reflect reality, group says

By Kevin Spak,  Newser Staff

Posted Sep 4, 2009 9:57 AM CDT

(Newser) – Based on official statistics, only 10% of Americans aged 65 and older are poor, the lowest rate of any age group. But the actual number should be nearly twice that, finds the National Academy of Sciences, which has developed a new, modern way of calculating poverty that is quickly gaining favor in Washington. It accounts for things like medical expenses and local cost of living.

The current federal poverty level calculation, devised in 1955, is set at three times the presumed cost of groceries nationwide—for a family of four, that's $21,203—ignoring all other factors. “It’s a hidden problem,” says the president of the AARP foundation. The new system would include a host of other factors, including non-cash government aid, transportation costs and more. The overall poverty rate would jump from 12.5% to 15.3%; among the elderly, it would be 18.7%.

The elderly are nearly twice as poor as previously believed under a new method of calculating the poverty level.
The elderly are nearly twice as poor as previously believed under a new method of calculating the poverty level.   (Getty Images)
Many more people are likely poor than current figures indicate.
Many more people are likely poor than current figures indicate.   (Getty Images)
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COMMENTS
Showing 3 of 4 comments
BlueAyez
Sep 4, 2009 7:46 AM CDT
So much for "I am my brother's keeper".
odowd80
Sep 4, 2009 6:57 AM CDT
The root of problems like this can be found here: http://en.wikipedia.org/wiki/F...
dax
Sep 4, 2009 4:10 AM CDT
Do unto the 'seniors' as ye would have your progeny do unto you.

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