Income and Assets of Current and Future Medicare Beneficiaries - - PDF document

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January 13, 2014 Income and Assets of Current and Future Medicare Beneficiaries January 13, 2014 Alliance for Health Reform Gretchen Jacobson, Ph.D. Associate Director Program on Medicare Policy Exhibit 1 Half of all Medicare beneficiaries

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January 13, 2014 1

Income and Assets of Current and Future Medicare Beneficiaries

January 13, 2014 Alliance for Health Reform Gretchen Jacobson, Ph.D. Associate Director Program on Medicare Policy

Exhibit 1

Half of all Medicare beneficiaries had incomes below $23,500 per person in 2013

25% had incomes below $14,400 50% had incomes below $23,500 5% had incomes above $93,900 1% had incomes above $171,650

SOURCE: Urban Institute / Kaiser Family Foundation analysis of DYNASIM data 2013.

Income includes Social Security, pensions, earnings, income from assets, rental income, and retirement account withdrawals

SLIDE 2

January 13, 2014 2

Exhibit 2

NOTE: Total household income for couples is split equally between husbands and wives to estimate income for married beneficiaries. SOURCE: Urban Institute / Kaiser Family Foundation analysis, 2013.

Median per capita income among Medicare beneficiaries varies by beneficiary characteristics in 2013

$23,500 $26,400 $16,350 $13,300 $17,200 $29,150 $23,550 $18,000 $27,400 $20,250 $21,050 $14,150

Race/ethnicity Age Marital Status

Total White Black Hispanic Under 65 65-74 75-84 85 or older Married Divorced Widowed Single Exhibit 3 $23,500 $28,250 $14,400 $16,400 $41,650 $51,000 $69,350 $84,100 $93,900 $111,900 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 2017 2022 2027

NOTE: All incomes are adjusted to 2013 dollars. SOURCE: Urban Institute / Kaiser Family Foundation analysis, 2013.

Growth in per capita income is projected to be concentrated among beneficiaries with higher incomes

Per Capita Total Income (in 2013 dollars)

Year

50th percentile (Median) 25th percentile 75th percentile 90th percentile 95th percentile

2013 2015 2020 2025 2030

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January 13, 2014 3

Exhibit 4

Half of all Medicare beneficiaries had savings below $61,400 per person in 2013

SOURCE: Urban Institute / Kaiser Family Foundation analysis of DYNASIM data 2013.

Savings include retirement account holdings (such as IRAs or 401Ks), savings accounts, bonds and stocks

50% had savings below $61,400 25% had savings below $11,300 50% had savings below $61,400 25% had savings below $11,300 50% had savings below $61,400 8% had $0 in savings

r were in debt

25% had savings below $11,300 50% had savings below $61,400 5% had savings above $1,112,950 8% had $0 in savings

r were in debt

25% had savings below $11,300 50% had savings below $61,400 5% had savings above $1,112,950 1% had savings above $3,423,800 8% had $0 in savings

r were in debt

Exhibit 5

NOTE: Total household savings for couples is split equally between husbands and wives to estimate savings for married beneficiaries. SOURCE: Urban Institute / Kaiser Family Foundation analysis, 2013.

Median per capita savings among Medicare beneficiaries varies by beneficiary characteristics in 2013

Median per capita savings among all beneficiaries

Race/ethnicity Age Marital Status

Total White Black Hispanic Under 65 65-74 75-84 85 or older Married Divorced Widowed Single

% with savings

92% 95% 81% 81% 87% 94% 92% 91% 95% 87% 92% 79%

Median among those with savings $75,200 $99,750 $18,800 $20,750 $37,600 $99,100 $87,300 $50,000 $90,100 $60,200 $68,800 $33,600

$61,400 $89,500 $10,300 $9,300 $28,050 $85,500 $70,300 $37,000 $80,000 $42,000 $55,050 $14,950

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January 13, 2014 4

Exhibit 6 $61,400 $101,150 $234,950 $354,100 $619,600 $896,550 $1,112,950 $1,470,900 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2017 2022 2027

NOTE: All savings are adjusted to 2013 dollars. SOURCE: Urban Institute / Kaiser Family Foundation analysis, 2013.

Growth in per capita savings is projected to be concentrated among beneficiaries with more savings

Per Capita Total Savings, among all beneficiaries (in 2013 dollars)

Year

50th percentile (Median) 75th percentile 90th percentile 95th percentile

2013 2015 2020 2025 2030

Exhibit 7

Half of all Medicare beneficiaries had home equity below $66,700 per person in 2013

SOURCE: Urban Institute / Kaiser Family Foundation analysis of DYNASIM data 2013.

50% had home equity below $66,700 25% had home equity below $12,250 50% had home equity below $66,700 25% had home equity below $12,250 50% had home equity below $66,700 21% had $0 in home equity 25% had home equity below $12,250 50% had home equity below $66,700 5% had home equity above $398,500 21% had $0 in home equity 25% had home equity below $12,250 50% had home equity below $66,700 5% had home equity above $398,500 1% had home equity above $799,850 21% had $0 in home equity

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January 13, 2014 5

Exhibit 8

Most people on Medicare are of modest means, and half lived
n less than $23,500 in 2013

– A small share have high incomes

Most people on Medicare have some savings and home

equity, but the range of assets among beneficiaries is wide

– Half of all Medicare beneficiaries have less than $61,400 savings – Half of all Medicare beneficiaries have less than $66,700 in home equity

Income and assets are projected to be somewhat greater

among the next generation

– Much of the growth is projected to be realized among the upper income and asset levels – Median income and assets expected to rise, but only modestly

January 13, 2014 1

Income and Assets of Current and Future Medicare Beneficiaries

Half of all Medicare beneficiaries had incomes below $23,500 per person in 2013

25% had incomes below $14,400 50% had incomes below $23,500 5% had incomes above $93,900 1% had incomes above $171,650

January 13, 2014 2

Median per capita income among Medicare beneficiaries varies by beneficiary characteristics in 2013

Growth in per capita income is projected to be concentrated among beneficiaries with higher incomes

January 13, 2014 3

Half of all Medicare beneficiaries had savings below $61,400 per person in 2013

50% had savings below $61,400 25% had savings below $11,300 50% had savings below $61,400 25% had savings below $11,300 50% had savings below $61,400 8% had $0 in savings

25% had savings below $11,300 50% had savings below $61,400 5% had savings above $1,112,950 8% had $0 in savings

25% had savings below $11,300 50% had savings below $61,400 5% had savings above $1,112,950 1% had savings above $3,423,800 8% had $0 in savings

Median per capita savings among Medicare beneficiaries varies by beneficiary characteristics in 2013

January 13, 2014 4

Growth in per capita savings is projected to be concentrated among beneficiaries with more savings

Half of all Medicare beneficiaries had home equity below $66,700 per person in 2013

January 13, 2014 5

– A small share have high incomes

equity, but the range of assets among beneficiaries is wide

– Half of all Medicare beneficiaries have less than $61,400 savings – Half of all Medicare beneficiaries have less than $66,700 in home equity

among the next generation

– Much of the growth is projected to be realized among the upper income and asset levels – Median income and assets expected to rise, but only modestly

Key Findings