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Homelessness Among Seniors a Growing Crisis, Say Experts

Homelessness rates are rising among people aged 65 and over. In addition to the dangers unhoused people face on the street, there are exponential effects on their access to health care.

Barriers to accessible housing mean that more seniors are exposed to deadly medical conditions and are less likely to receive the preventative care they need to treat existing chronic health care issues.

Older People Experiencing Homelessness

People over age 65 are a part of a vulnerable population. They experience higher rates of chronic diseases, lack access to preventative care, and are more likely to struggle to get nutritious food. Housing insecurity exacerbates these problems, and a snowball effect leads to a greater chance of adverse health outcomes.

The number of seniors experiencing homelessness is expected to continue to grow over the next decade. A 2019 study published by the National Alliance to End Homelessness focused on senior populations in three major American cities: New York, Boston, and Los Angeles. Studying these populations helped experts predict the increase in homelessness rates among seniors, the causes and effects of housing insecurity among older people, and what subgroups need in order to eliminate homelessness.

According to the research findings, the rates of homelessness among seniors aged 65 and older in each city studied have increased yearly since 2011.

Number of Unhoused Seniors in Cities Included in the Study

In each of the cities studied, the number of older people who face homelessness or housing insecurity is projected to grow exponentially.

• New York City – The number of unhoused adults older than 65 living in New York was 2,600 in 2017. The rate of homelessness among seniors in New York may grow to 6,900 by 2030.

• Boston – In 2017, 570 seniors experienced housing insecurity or homelessness. By 2030, that number is expected to increase to 1,560.

• Los Angeles County – The number of people experiencing homelessness in Los Angeles is staggering. The city has a reputation for high rates of homelessness. In 2015, the city reported 4,700 unhoused seniors. By 2030, the number of seniors experiencing homelessness is forecasted to reach 13,900.

Reported Causes of Homelessness Across the Baby Boomer Generation

The Baby Boomer generation has lived through its share of economic instability. Multiple recessions, increasing inflation, and rising housing costs may be among the culprits for the financial crises facing this group. Meanwhile, a lack of a solid social safety net has left seniors vulnerable to housing insecurity as they age.

Lack of Housing and Adverse Health Consequences Among Seniors

There is undoubtedly a connection between homelessness and health outcomes. Cost and access to health care are both affected by housing status. Stable and affordable housing increases the chances of positive physical and mental health outcomes.

Homelessness is a public health issue. People experiencing homelessness will likely experience a higher rate of health problems, including:

• Tuberculosis
• Alcohol and drug abuse
• HIV infection

The increased rates of health problems among unhoused people are usually the result of several factors, including limited access to social services, inadequate food, no protection from the elements, and other barriers to health care.

Supportive Housing in Ending Homelessness

Policymakers share the responsibility to end homelessness and mitigate its effects. The country’s leaders have legal and policy interventions to consider in addressing homelessness.

Supportive housing may be one possibility that can help lower the cost of health care while getting and keeping people in affordable homes. Supportive care includes providing unhoused people with affordable housing options plus coordinated social services. These social services may be designed to help individuals and families gain access to:

• Food
• Medical care/insurance coverage
• Substance abuse and mental health services
• Financial support

Easing the burden that older adults face when deciding between maintaining housing and paying for health expenses will decrease the homelessness rate among this demographic. The removal of stress caused by housing instability allows seniors to focus on treating their health conditions, thereby improving survival rates and quality of life.

Increased funding to state Medicaid/Medicare programs and managed care organizations may be part of the solution. These programs pay for support services like the ones listed above, as well as tenants’ rights and responsibility training, eviction prevention, and housing location services.

Affordable Housing Options for Seniors

Closing the housing affordability gap is essential to improving health outcomes for seniors. If you are starting the search for affordable housing options for seniors, consider connecting with your attorney.

What Comes First: College Expenses or Your Retirement?

“About one-third of Americans with children under 18 say they plan to use retirement savings or "could use if needed" to help pay for their children's education, according to a recent survey by Sallie Mae, one of the nation's largest student loan lenders.”

Here’s the biggest difference between retirement savings and college expenses: you can get a loan for college. No financial institution will give you a loan for retirement. Therefore, when it comes to finding money for college, financial planners and estate planning attorneys agree, as does this article from the Star Tribune: “Do your kids a favor: Pick retirement savings over tuition.”

The number of people who are making that decision are on the decline. The 2016 edition of that survey is down from 39%. It’s good that more parents are thinking twice about making this financial mistake.

Paying for college expenses from a tax-advantaged employer retirement account, like a 401(k), can become very costly. Here’s why:

• How does a 10% tax penalty on early withdrawals, if you’re under 59½ sound? Not good.
• The money you withdraw is taxed as income.
• You’re losing the tax-free growth of your savings. Remember, these retirement accounts grow tax-free.
• You lose the benefit of compounding, so your growth potential is losing ground.

The “least worst” option, say experts, is to fund a Roth IRA. Unlike qualifying contributions to a 401(k) or traditional IRA, the Roth IRA contributions are not tax-exempt. As a result, there are fewer restrictions on early withdrawals.

However, you’re still losing out in many ways. This includes when you get further along into your retirement years and you don’t have enough money to support yourself. Take a very long-term perspective on what will happen in the future.

Parents must understand that while it’s nice that they want to sacrifice to help their children through college, they may actually be generating far more stress for their children when the kids have to help Mom and Dad during retirement years. That’s likely when their kids are having children of their own, paying a mortgage and saving for their own children’s college expenses.

One last, major consideration is: college aid. Your withdrawals from retirement funds will be counted by financial aid offices as ordinary income. If it pushes your total wages up too high, your college-bound student may not qualify for assistance.

Retirement accounts are not counted, when considered if your student qualifies for financial aid. Therefore, your best bet is to continue funding retirement accounts. If you start cashing them out to pay for college expenses, everyone loses in the long run.

Reference: Star Tribune (Nov. 6, 2018) “Do your kids a favor: Pick retirement savings over tuition”