Economic (In)security and Living Arrangements in Later Life: Heterogeneity by Race-Ethnicity

Changes in economic security and living arrangements among the diverse, aging U.S. population are not experienced uniformly. Using Health and Retirement Study data linked to the Elder Index TM —an income measure of older adult needs—we estimated discrete-time competing risks models to examine the first transition from economic security and independent living near retirement age (65–68) among community-dwelling older adults to: economic insecurity while living independently, doubling up (non-independent living by coresiding with any non-spousal individuals), remaining in economic security while living independently, or being lost to follow-up. A substantial portion of relatively well-off adults near retirement age became economically insecure (21%) or doubled up (15%). Non-Hispanic Black and Hispanic Americans were also more likely to transition into economic insecurity while living independently and double up than non-Hispanic White Americans. Lastly, wealth near retirement age largely explained Black women’s higher risk of becoming economically insecure compared to White women.