Older Adults and the Economic Impact of the COVID-19 Pandemic

ABSTRACT

The COVID-19 pandemic has impacted communities throughout the United States and worldwide. While the implications of the concomitant economic downturn for older adults are just beginning to be recognized, past experience suggests that the consequences could be devastating for many. Analyses indicate that more than one out of five Americans aged 65 years or older live in counties where high infection rates and high economic insecurity risks occur simultaneously. These findings highlight the overlap between current infection patterns and subsequent challenges to economic security that are impacting older people. Strategies and supports for getting people back to work must take into account the large segment of older people who rely on earnings well into later life. Social Security serves as the foundation of economic security for older adults across the income continuum, but it is frequently insufficient in and of itself, let alone during a crisis. Recognizing the importance of cost of living in shaping economic security highlights the need for the federal and state governments and municipalities to take older people into account in the economic recovery effort.

KEYWORDS:

• COVID-19
• cost of living
• Elder Index
• economic security
• economic downturn

Key points

• More than one out of five Americans age 65 years or older live in counties where high infection rates and high economic insecurity risks occur simultaneously.

• Social Security serves as the foundation of economic security for older adults across the income continuum, but it is insufficient in and of itself.

• Older adults in geographic areas with high costs of living may experience greater financial strain due to the pandemic.

Acknowledgments

We thank funders of the Elder Index for their important contributions to our work, including RRF Foundation for Aging, National Council on Aging, The Henry and Marilyn Taub Foundation, The Silver Century Foundation, and Gary and Mary West Foundation.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. Calculated by the authors based on data from the Johns Hopkins University, American Community Survey, and the Elder Index. Estimates are based on reported COVID-19 cases through May 1, 2020. Prevalence is defined as the number of reported COVID-19 cases per 100,000 residents at the county level. Less than 1% of all COVID-19 cases were not included because the counties of these cases were not reported or identifiable. Cases from cruise ships and correctional facilities were excluded. Elder Index values were based on those for single renters in good health in each county.