Wealth Inequality Among Older Americans

This article uses the AHEAD study to examine the distribution of wealth among American households with a member at least 70 years old. As in other age groups, wealth is unevenly distributed among Americans aged 70 years and older. The households in the top 10th percentile of wealth distribution have 2,500 times as much wealth as those in the lowest 10th percentile. This wealth inequality is reflected in large racial and ethnic wealth deficits. Such wealth disparities, largely due to income, are the primary reason why older minority households have accumulated so little wealth compared to older White households. The findings confirm that current health status remains a powerful correlate of household wealth and that bequests motives for the elderly are congruent with the extreme wealth disparities.