Income of the Aged Chartbook, 2012

Total Money Income

The demographic composition of the elderly changes with age. Aged units 65 to 69 are the most likely to be married couples (50.8%), while aged units 80 or older are most likely to be nonmarried women (53.0%). The younger age groups also have a greater proportion of minorities than the older cohorts.

Percentage distribution of aged units 65 or older, 2012
  65 or older 65–69 70–74 75–79 80 or older
Marital status and sex  
Married couples 42.5 50.8 49.0 43.6 28.1
Nonmarried men 16.9 17.6 15.2 14.6 18.9
Nonmarried women 40.5 31.6 35.9 41.8 53.0
Race  
White alone 84.4 82.8 83.5 85.2 86.5
Black alone 10.1 11.0 10.9 9.5 8.8
Asian alone 3.8 4.1 3.7 3.5 3.7
Hispanic origin 7.7 8.7 7.2 8.4 6.5
Total number of aged units (thousands) 32,667 10,178 7,372 5,593 9,524
NOTE: Totals do not necessarily equal the sum of the rounded components.

The aged are an economically diverse group. The median income for units aged 65 or older is $28,056, but there are wide differences within the total group. Approximately 11% have an income of under $10,000, and roughly 28% have an income of $50,000 or more.

Percentage with various levels of income, 2012
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Table equivalent for chart. Percentage with various levels of income, 2012
Income (dollars) Percentage of aged units
Less than 5,000 4.5
5,000 to 9,999 6.9
10,000 to 14,999 12.6
15,000 to 19,999 11.8
20,000 to 24,999 9.1
25,000 to 29,999 7.9
30,000 to 34,999 6.6
35,000 to 39,999 5.1
40,000 to 44,999 4.2
45,000 to 49,999 3.8
50,000 to 74,999 12.4
75,000 to 99,999 6.1
100,000 or more 9.2
 
NOTE: Totals do not necessarily equal the sum of the rounded components.

Income differences by age are associated with differences in marital status. Median income is generally lower in older age groups. The striking differences by age are due in part to the disproportionate number of nonmarried women in older age groups.

Median income, by age and marital status, 2012
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Table equivalent for chart. Median income, by age and marital status, 2012
Age All units Married couples Nonmarried persons
65 to 69 39,599 62,122 22,194
70 to 74 31,339 49,866 19,209
75 to 79 25,244 41,222 16,908
80 or older 20,517 35,182 16,931
 

Demographic differences are associated with different levels of median income for units aged 65 or older. Income is highest for married couples, who have a median income more than 2½ times that of nonmarried persons. Median income of white aged units is greater than that of Asian aged units and black aged units by 51 and 55 percent, respectively.

Median income, by marital status, race, and Hispanic origin, 2012
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Table equivalent for chart. Median income, by marital status, race, and Hispanic origin, 2012
Characteristic Income (dollars)
Marital status  
Married couples 48,826
Nonmarried persons 18,299
Race  
White alone 29,887
Black alone 19,249
Asian alone 19,798
Hispanic origin 15,599
 

Median real income has risen substantially over the years. Between 1962 and 2012, the income of units aged 65 or older increased even when adjusted for inflation. The increase was 123.4% for married couples and 113.0% for nonmarried persons. There were disproportionate increases by race. Between 1967 and 2012, the income of whites increased by 128.6%; that of blacks increased by 108.4%.

Change in median income, by marital status and race, selected years
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Table equivalent for chart. Constant (2012) dollar median income, by marital status and race, selected years
Year Married couples Nonmarried persons White Black
1962 21,857 8,591 -- --
1967 23,186 8,978 13,074 9,239
1971 30,374 11,616 18,402 10,731
1976 31,836 13,558 19,933 12,065
1978 33,312 13,769 20,987 11,444
1980 33,492 13,319 20,675 11,313
1982 35,997 13,990 22,484 11,373
1984 38,118 14,783 24,219 12,087
1986 39,571 15,041 24,677 12,464
1988 39,407 15,386 25,457 12,233
1990 41,021 16,068 25,545 12,274
1992 38,975 15,635 24,586 12,213
1994 38,800 16,120 24,712 13,591
1996 40,891 16,538 24,809 14,120
1998 42,504 16,924 26,699 13,260
2000 41,583 16,953 26,386 16,444
2002 41,426 16,833 25,657 15,315
2004 42,418 17,015 26,374 15,196
2006 43,623 18,140 28,082 16,400
2008 45,947 17,869 27,915 17,656
2010 47,084 18,174 28,654 17,334
2012 48,826 18,299 29,887 19,249
NOTE: -- = not available.
 

Income Sources

Social Security is the most common source of income for units aged 65 or older. Nearly 9 out of 10 aged units receive Social Security benefits. Asset income is the next most common source of income, received by more than half of the aged. Two-fifths receive retirement benefits other than Social Security, and more than one-quarter have earnings. Public assistance and veterans' benefits are each received by less than 5%. Noncash benefits, including SNAP benefits and housing and energy assistance, are received by almost 12%.

Percentage receiving income from specified source, 2012
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Table equivalent for chart. Percentage receiving income from specified source, 2012
Source of income Percent
Social Security 86.0
Asset income 51.3
Retirement benefits other than Social Security 39.4
Public and private 2.2
Public only 12.6
Private only 24.6
Earnings 28.3
Veterans' benefits 4.2
Cash public assistance 3.6
Noncash benefits 11.6
 

Social Security provides at least half of total income for a majority of beneficiary aged units. In 2012, 86.8% of married couples and 85.6% of nonmarried persons aged 65 or older received Social Security benefits. Social Security was the major source of income (providing at least 50% of total income) for 52.3% of aged beneficiary couples and 73.8% of aged nonmarried beneficiaries. It was 90% or more of income for 21.6% of aged beneficiary couples and 46.8% of aged nonmarried beneficiaries. Total income excludes withdrawals from savings and lump-sum payments from IRAs or 401(k)s; it also excludes in-kind support, such as SNAP benefits and housing and energy assistance.

Percentage of aged beneficiary units receiving Social Security benefits, by relative importance of benefits to total income, 2012
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Table equivalent for chart. Percentage of aged beneficiary units receiving Social Security benefits, by relative importance of benefits to total income, 2012
All beneficiary units Beneficiary married couples Nonmarried beneficiaries
50% or more of income 64.6 52.3 73.8
90% or more of income 36.1 21.6 46.8
 

Aged groups differ in their likelihood of receiving earnings, but not pensions. Earnings are received by a greater percentage of aged units in the youngest group than in the oldest group—49.7% compared with 8.5%. In all age groups, there is little difference in the likelihood of having a public or private pension.

Percentage receiving income from earnings and pensions, by age, 2012
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Table equivalent for chart. Percentage receiving income from earnings and pensions, by age, 2012
Age Earnings Private pensions Public pensions
65 to 69 49.7 24.1 15.8
70 to 74 30.6 29.0 14.6
75 to 79 19.8 28.6 15.5
80 or older 8.5 26.9 13.6
 

Receipt of income from major sources varies by race and Hispanic origin. Among units aged 65 or older, whites are more likely than Asians, blacks, or Hispanics to receive Social Security, pensions, and income from assets. Receipt of earnings varies little by race and Hispanic origin. Minority aged units are more likely to receive Supplemental Security Income (SSI) than are whites.

Percentage receiving income from major sources, by race and Hispanic origin, 2012
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Table equivalent for chart. Percentage receiving income from major sources, by race and Hispanic origin, 2012
Major source of income White alone Black alone Asian alone Hispanic
Social Security 87.6 79.3 68.7 74.8
Asset income 55.3 25.9 37.9 24.8
Pensions 41.1 33.1 21.4 19.4
Earnings 28.6 23.8 28.8 25.5
SSI 2.4 7.1 11.1 9.5
 

Receipt of Social Security has become nearly universal. In 1962, 69% of units aged 65 or older received Social Security benefits; in 2012, 86% of them did. Most of that increase occurred in the 1960s. Receipt of other pension income, which more than doubled from 1962 to 1992, has decreased slightly since then. The proportion of aged units with asset income, which had been about two-thirds since 1980, has dropped since 1990 and leveled off since 2000. The proportion with earnings has declined since 1971 and has been between 20% and 25% since 1980. The proportion receiving public assistance has also declined and is now about a third of its 1962 level.

Change in percentage receiving income from major sources, selected years
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Table equivalent for chart. Percentage receiving income from major sources, selected years
Year Social Security Pensions Asset income Earnings Cash public assistance
1962 69 18 54 36 13
1967 86 22 50 27 12
1971 87 23 49 31 10
1976 89 31 56 25 11
1978 90 32 62 25 10
1980 90 34 66 23 10
1982 90 35 68 22 8
1984 91 38 68 21 9
1986 91 40 67 20 7
1988 92 42 68 22 7
1990 92 44 69 22 7
1992 92 45 67 20 7
1994 91 42 67 21 6
1996 91 41 63 21 6
1998 90 43 63 21 5
2000 90 41 59 22 5
2002 90 41 55 22 5
2004 89 41 55 24 4
2006 88.5 41.3 54.9 24.6 3.7
2008 87.2 40.7 54.4 26.4 3.9
2010 86.3 39.7 51.9 26.3 3.7
2012 86.0 39.4 51.3 28.3 3.6
 
 

Receipt of asset income is associated with relatively high median income. The median income of units aged 65 or older with asset income is more than twice that of those with no asset income ($41,809 compared with $18,203). Aged units with no asset income are concentrated in the lowest income categories—one-fifth have a total income below $10,000, and approximately one-fourth have an income of $30,000 or more. Among aged units with asset income, 3.7% have a total income of less than $10,000, and over half have an income of $30,000 or more.

Percentage with various levels of income, by receipt of asset income, 2012
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Table equivalent for chart. Percentage with various levels of income, by receipt of asset income, 2012
Income (dollars) With asset income Without asset income
Less than 10,000 3.7 19.7
10,000 to 19,999 15.0 34.2
20,000 to 29,999 16.2 17.7
30,000 or more 65.1 28.4
 

Receipt of earnings and retirement benefits also affects total income. About 11.0% of units aged 65 or older have no retirement benefits. Of those, 55.5% have earnings, and their median income is $55,450; 44.5% have no earnings, and their median income is $0. In the absence of earnings, median income rises markedly with the number of retirement benefit types received, from $16,199 with one retirement benefit type to $34,874 with two. For units with both earnings and retirement benefits, median income is $54,000 for those with one retirement benefit type and $72,718 for those with two.

Median income, by receipt of earnings and retirement benefits, 2012
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Table equivalent for chart. Median income, by receipt of earnings and retirement benefits, 2012
Receipt of retirement benefits With earnings With no earnings
No retirement benefits 55,450 0
One retirement benefit type 54,000 16,199
Two retirement benefit types 72,718 34,874
 
NOTE: Retirement benefit types are Social Security, Railroad Retirement, government pension, and private pension or annuity.

Shares of Aggregate Income

Social Security provides the largest share of aggregate income for units aged 65 or older. Aggregate income for the aged population comes largely from four sources. Social Security accounts for 35.3%, earnings for 33.9%, pensions for 17.1%, and asset income for 10.5%. Only 3.0% comes from other sources.

Shares of aggregate income, by source, 2012
Pie chart described in previous paragraph.
NOTE: Totals do not necessarily equal the sum of the rounded components.

Shares of aggregate income from each source differ greatly by income level. Units aged 65 or older are ranked by total money income and divided into five groups of equal size called quintiles. The largest share of income for units in the lowest quintile comes from Social Security benefits (83.2%), and cash public assistance provides the second largest share (8.1%). For units in the highest income quintile, earnings provide the largest share of income (49.9%). Pensions, Social Security, and asset income (17.2%, 15.9%, and 14.8%) are similar in importance.

Shares of aggregate income for the lowest and highest income quintiles, by source, 2012
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Table equivalent for chart. Shares of aggregate income for the lowest and highest income quintiles, by source, 2012
Source of aggregate income Percentage of aggregate income for lowest quintile Percentage of aggregate income for highest quintile
Social Security 83.2 15.9
Earnings 2.8 17.2
Pensions 1.4 14.8
Asset income 2.7 49.9
Cash public assistance 8.1 0.0
Other 1.6 2.0
 
NOTES: The quintile limits for aged units for 2012 are $13,292, $22,021, $35,493, and $63,648.
Totals do not necessarily equal the sum of the rounded components.

Over time, Social Security has provided the largest share of aggregate income for units aged 65 or older. In 1962, it provided the largest share, followed closely by earnings. In 2012, Social Security continued to provide the largest share, but by a wider margin compared with the other major sources of income. The share from asset income increased for over 20 years but has generally declined since the mid-1980s. The share from earnings has had the opposite pattern—declining until the mid-1980s and generally increasing since then. The share from pensions had doubled by the early 1990s but has since leveled off.

Shares of aggregate income, by source, selected years
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Table equivalent for chart. Shares of aggregate income, by source, selected years (in percent)
Year Social Security Pensions Asset income Earnings Other
1962 31 9 16 29 15
1967 34 12 15 29 10
1976 39 16 18 23 4
1978 38 16 19 23 4
1980 39 16 22 19 4
1982 39 15 25 18 3
1984 38 15 28 16 3
1986 38 16 26 17 3
1988 37.9 17.5 24.8 17.0 2.8
1990 36.4 18.3 24.5 17.7 3.1
1992 39.5 19.6 20.6 17.1 3.2
1994 42.1 18.7 17.6 18.0 3.6
1996 40.3 18.5 18.0 20.0 3.2
1998 37.6 18.7 19.9 20.7 3.1
2000 38.4 18.0 17.5 23.1 3.0
2002 39.4 19.0 13.6 24.9 3.1
2004 38.6 19.7 12.6 26.3 2.7
2006 36.7 17.9 14.9 27.8 2.7
2008 36.5 18.5 12.7 29.7 2.7
2010 36.7 18.6 11.4 30.2 3.1
2012 35.3 17.1 10.5 33.9 3.0
Statistic was not produced in 1971.
NOTES: Totals do not necessarily equal the sum of the rounded components.

Family Income of Persons 65 or Older

The demographic composition of the elderly varies across age groups. The proportion of men to women differs little for ages 65–69, but women 80 or older greatly outnumber men 80 or older. Persons 65–69 are nearly twice as likely to be married than nonmarried, but more than half of persons 80 or older are widowed. Racial and ethnic composition varies across age cohorts as well; the younger cohorts are represented by larger proportions of minorities than the older cohorts. Approximately one-fifth of elderly persons live with nonspouse family, consistent across age categories.

Percentage distribution of persons 65 or older, 2012
  65 or older 65–69 70–74 75–79 80 or older
Sex  
Men 44.6 47.8 45.8 42.6 40.6
Women 55.4 52.2 54.2 57.4 59.4
Marital status  
Married 56.6 65.3 63.4 58.5 37.7
Nonmarried 43.4 34.7 36.6 41.5 62.3
Widowed 25.6 11.5 18.0 26.5 50.4
Divorced 11.1 15.1 12.3 9.2 6.0
Never married 4.4 5.4 4.1 4.0 3.6
Race  
White alone 85.6 84.4 85.0 86.5 87.0
Black alone 9.0 9.5 9.3 8.6 8.3
Asian alone 3.9 4.1 4.1 3.3 3.7
Hispanic origin 7.4 8.2 7.1 7.7 6.4
Living with nonspouse family 22.3 23.2 20.8 20.5 23.7
Total number of aged persons (thousands) 43,287 14,437 10,264 7,598 10,988
NOTE: Totals do not necessarily equal the sum of the rounded components.

The aged are an economically diverse group. The median family income for persons aged 65 or older is $39,196, but there are wide differences within the total group. Approximately 5.9% have family income of under $10,000, and roughly 35.3% have family income of $50,000 or more.

Percentage with various levels of family income, 2012
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Table equivalent for chart. Percentage with various levels of family income, 2012
Income (dollars) Percent
Less than 5,000 2.2
5,000 to 9,999 3.7
10,000 to 14,999 7.7
15,000 to 19,999 8.5
20,000 to 24,999 7.8
25,000 to 29,999 8.1
30,000 to 34,999 7.0
35,000 to 39,999 5.9
40,000 to 44,999 4.9
45,000 to 49,999 4.8
50,000 to 74,999 16.1
75,000 to 99,999 8.9
100,000 or more 14.4
 
NOTES: Totals do not necessarily equal the sum of the rounded components.
Family income of persons 65 or older tends to be higher than the income of aged units 65 or older because it includes income from all family members, not just a spouse. In addition, each elderly person counts individually rather than as part of a marital unit; statistics based on aged units give greater weight to nonmarried persons as compared to statistics based on persons.

Family total income varies by age and sex. Median family total income is highest for the youngest cohorts. In addition, in all age groups, women have lower median family total income than men, from $47,749 for woman aged 65 to 69 to $25,328 for women aged 80 or older.

Median family income, by sex and age, 2012
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Table equivalent for chart. Median family income, by sex and age, 2012
Age All persons Men Women
65 to 69 51,074 56,681 47,749
70 to 74 41,469 47,342 37,008
75 to 79 34,404 40,998 29,998
80 or older 28,798 33,600 25,328
 
NOTE: Family income of persons 65 or older tends to be higher than the income of aged units 65 or older because it includes income from all family members, not just a spouse. In addition, each elderly person counts individually rather than as part of a marital unit; statistics based on aged units give greater weight to nonmarried persons as compared to statistics based on persons.

Family median income varies by sex, race, and Hispanic origin. Median family income of men is roughly one-third higher than it is for women. Asians have the highest median family income, followed by whites, Hispanics, and blacks.

Median family income, by sex, race, and Hispanic origin, 2012
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Table equivalent for chart. Median family income, by sex, race, and Hispanic origin, 2012
Sex, race, or Hispanic origin Dollars
All persons 39,196
Men 45,398
Women 34,613
White alone 39,711
Black alone 30,049
Asian alone 54,399
Hispanic 31,122
 
NOTE: Family income of persons 65 or older tends to be higher than the income of aged units 65 or older because it includes income from all family members, not just a spouse. In addition, each elderly person counts individually rather than as part of a marital unit; statistics based on aged units give greater weight to nonmarried persons as compared to statistics based on persons.

Family income sources vary by sex. Men are more likely than women to be in families receiving income from any source other than Social Security and public assistance.

Family income source, by sex, 2012
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Table equivalent for chart. Family income source, by sex, 2012
Source of income All persons Men Women
Social Security 87.5 86.3 88.6
Asset income 56.2 58.8 54.1
Retirement benefits other than Social Security 42.9 45.3 40.9
Earnings 39.6 43.1 36.8
Veterans' benefits 4.7 6.1 3.6
Cash public assistance 4.6 3.9 5.2
Noncash benefits 9.9 7.8 11.6
 
NOTE: Family income of persons 65 or older tends to be higher than the income of aged units 65 or older because it includes income from all family members, not just a spouse. In addition, each elderly person counts individually rather than as part of a marital unit; statistics based on aged units give greater weight to nonmarried persons as compared to statistics based on persons.

Social Security was the major source of family total income for slightly more than half of persons 65 or older in families receiving benefits. For about one-quarter of the elderly, Social Security was most of family total income. Social Security was the predominant source of family income for one-fifth of elderly men in beneficiary families and over one-quarter of elderly women in beneficiary families. Social Security accounted for less than half of family income for nearly half of the elderly men in beneficiary families and 41.1% of elderly women in beneficiary families.

Percentage of aged persons in families receiving Social Security benefits, by sex and relative importance of family benefits to family total income, 2012
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Table equivalent for chart. Percentage of aged persons in families receiving Social Security benefits, by sex and relative importance of family benefits to family total income, 2012
All persons Men Women
50% or more of income 55.9 52.1 58.9
90% or more of income 26.7 23.0 29.6
 
NOTE: Family income of persons 65 or older tends to be higher than the income of aged units 65 or older because it includes income from all family members, not just a spouse. In addition, each elderly person counts individually rather than as part of a marital unit; statistics based on aged units give greater weight to nonmarried persons as compared to statistics based on persons.

Poverty Status, Based on Family Income

High proportions of nonmarried and minority persons aged 65 or older are poor or near poor. The variations in family income by sex, marital status, and race are reflected in the poverty rates for those subgroups of the aged. Nonmarried persons, blacks, and Hispanics have the highest poverty rates, ranging from 15.2% to 20.6%. An additional 8.8% to 9.0% of nonmarried persons, blacks, and Hispanics have incomes between the poverty line and 125% of the poverty line (the near poor).

Poverty status, by sex, marital status, race, and Hispanic origin, 2012
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Table equivalent for chart. Poverty status, by sex, marital status, race, and Hispanic origin, 2012 (in percent)
Sex, marital status, race, or Hispanic origin Poor Near poor
All persons 9.1 5.5
Men 6.6 4.3
Women 11.0 6.5
Married 4.4 2.8
Nonmarried 15.2 9.0
White alone 7.8 5.1
Black alone 18.2 8.9
Asian alone 12.3 4.8
Hispanic 20.6 8.8
 

The oldest age group (80 or older) has the highest poverty rate. In keeping with the lower family income of older age groups, those groups generally have higher rates of poverty and near poverty (income between the poverty line and 125% of the poverty line).

Poverty status, by age, 2012
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Table equivalent for chart. Poverty status, by age, 2012 (in percent)
Age Poor Near poor
65 to 69 7.8 3.8
70 to 74 8.1 4.8
75 to 79 9.4 6.6
80 or older 11.4 7.7
 

Definitions and Notes

Income Sources

Asset income includes interest, dividends, income from estates or trusts, and net rental income or royalties.

Cash public assistance includes Supplemental Security Income and other cash public assistance payments low-income people receive, such as Aid to Families with Dependent Children (AFDC, ADC), temporary assistance to needy families (TANF), general assistance, and emergency assistance.

Earnings is the sum of income from wages and salaries and income from self-employment.

Noncash benefits include Supplemental Nutrition Assistance Program benefits (SNAP benefits formerly known as food stamps), energy assistance, and housing assistance. Noncash benefits are not included as money income for public assistance or total income.

Retirement benefits include Social Security, other public sources such as Railroad Retirement and government employee pensions (military, federal, state, and local), and private pensions and annuities.

Social Security includes retired-worker benefits, dependent or survivor benefits, disability benefits, transitionally insured benefits, and special age-72 benefits.

Pensions include regular payments from private pensions and annuities; government employee pensions; Railroad Retirement; and individual retirement accounts (IRAs), Keoghs, and 401(k) plans. Irregular withdrawals (lump-sum payments) from IRAs, Keoghs, and 401(k) plans are not included in the data because they do not fit the Census Bureau's definition of money income.

Income

Total money income is the sum of all income received by the aged unit before any deductions such as taxes, union dues, or Medicare premiums. Total money income does not reflect nonmoney transfers such as SNAP benefits, health benefits, subsidized housing, payments in kind, or fringe benefits from one's employment. Total money income does not include capital gains or losses, or irregular withdrawals (lump-sum payments) from IRAs, Keoghs, or 401(k) plans.

Aggregate income is the sum of the total money income of all aged units in the population of interest. Several charts in this book present the shares of aggregate income attributable to specific sources, such as Social Security.

Source of Data

Data for this series are from the March Current Population Survey (CPS) of the U.S. Census Bureau. The CPS samples a large cross section of households in the United States each year (approximately 98,000 in March 2013). The March supplement gathers detailed information on income and labor force participation of each person 15 years of age or older in the sample households.

General Notes

This publication covers the population aged 65 or older. The unit of analysis here, with the exception of the measures of poverty and family income of persons, is the aged unit, which is a married couple living together or a person who does not live with a spouse. A married couple's age is defined as the age of the husband—unless he is under age 55 and the wife is 55 or older, in which case it is the age of the wife. The race and Hispanic origin of a married couple are determined by the husband. The unit of analysis for family income of persons and poverty is persons aged 65 or older.

Beginning with data for 2002, respondents may identify themselves in more than one racial group. The “White alone” and “Black alone” categories reflect respondents who reported only one race.

All years are calendar years.

Nonmarried men and nonmarried women include persons who are separated or married but living apart from their spouse.

Persons of Hispanic origin may be of any race.