New estimates from the 2019 Elder Index, calculated by the Gerontology Institute at the University of Massachusetts Boston, show that older Americans living alone in mostly Democratic Northeast states are at risk of not having enough financial resources to cover expenses, reported Bloomberg.
The Elder Index tracks the income needed for baby boomers to cover basic needs. The average older adult without a mortgage needs about $21,000 per year to live or about $31,800 if married.
The 2019 Elder Index details how older adults living in Northeast states, with several regional exceptions of Hawaii and California, are at the highest risk of financial instability. Some of the costliest states are Democratic ones, while the most affordable ones are Republican.
A well-funded retirement account of a boomer generally has a mix of bonds and stocks that produce income, with the compliments of social security payouts. But since the Federal Reserve has robbed savers over the last ten years by setting interest rates lower than usual -- income for boomers has been rather depressing -- contributing to their economic demise.
Economic stress among older Americans has been increasing in the last decade, and at least 25% of boomers are struggling with deteriorating health, the Centers for Disease Control and Prevention has said.
There are about 77 million boomers across the country; many of them are becoming a financial drain on the system. At least 33% of older folks have zero savings, and it could explain why they're all becoming Lyft and Uber drivers, crowding out insolvent millennials.
The take away from this report, if you're a boomer and broke, don't live in a Democrat state. If you already do, move while you still can.