Comfort and Dignity - Benjamin Rose

Since its founding in 1908, the Benjamin Rose Institute has addressed the financial challenges faced by older adults. In its first two decades, Benjamin Rose provided modest monthly stipends to “worthy, older adults” to meet their living expenses when illness or misfortune threatened their ability to live with comfort and dignity. These payments, and the work of “friendly visitors” who followed up on requests for assistance, informed the fields of gerontology and social work, and helped establish the programs and services provided by Benjamin Rose today.

In the days before the establishment of Social Security, half of older adults in the US lived—and died—in poverty. Social Security issued its first payment in 1937. Survivor benefits (for the surviving spouse or children) were added in 1939. Disability benefits came along in 1956. And in 1966, Medicare and Medicaid were implemented, providing health care coverage for older adults. These programs helped dramatically reduce the percentage of older adult living in poverty: from 50 percent in 1938 to 10 percent today.

But financial stability continues to be a challenge for older Americans. The costs for housing, health care and groceries have increased at a faster rate than overall inflation in recent years. Poverty among the “oldest old,” those aged 80 and older, is higher than the among younger retirees. Elderly women, especially unmarried women and those living alone, are also more likely to live in poverty. On average, women receive $3,900 less in retirement income than men.

One crisis away. . .

Many older adults who would not consider themselves poor are also financially at risk.

A report published in the Journal for Health Affairs projects that by 2029, more than half of middle-income adults ages 75 and older will not have sufficient income to cover their health care and housing costs.
And analysis by the National Council on Aging and LeadingAge found that four out of five older Americans are unable to sustain a financial shock such as long-term care costs or the loss of a spouse. “Nearly all older Americans are one crisis away from plunging into poverty.”

We see examples of this among the people served by Benjamin Rose.

“Ned” is semi-retired and supplements his social security income by doing small handyman projects. He lives modestly and has no outstanding debt. He rented the same home in North Olmstead for nearly a decade. Last year, the previous owner sold the house, his new landlord raised the rent by $300 per month.
“Jane” retired from a local school district where she had worked as an administrative assistant. Her modest pension allows her to rent an apartment near Shaker Square. But maintenance issues in the building, including the boiler and elevator, make it difficult for her to continue living there. At age 80, she no longer drives, so she looked for another apartment in the area. Her income makes her ineligible for subsidized housing. She cannot afford the $1,200 per month rent in other nearby buildings, nor does she have the money to pay for the cost of moving. For now, she is staying put and working with a tenant advocacy group to pressure her landlord to make repairs.

Ned and Jane are two examples of the “forgotten middle.” Not wealthy, but not poor. Doing okay… until something happened. It is a growing challenge. In 2022, the median income for individuals aged 65 and older in Cleveland was $29,740.00. The average monthly rent for a one-bedroom apartment was $1,400.00. Average utilities were $276.00. Food, medicine, and healthcare costs add to monthly expenses, creating more pressure on households on fixed incomes. Most older adults rely on Social Security for fifty percent or more of their income in retirement. According to Mike Billnitzer, who leads our Housing and Financial Wellness programs, half of Americans, regardless of their age, do not have the cash to cover an unexpected expense of one thousand dollars.

Addressing housing and financial wellness

Benjamin Rose addresses these challenges through a variety of services. Housing has been a program of Benjamin Rose since 1941, when the agency began providing residential care services. Today, Margaret Wagner Apartments offers affordable and accessible housing for older adults, with rents that are based on the residents’ income and ability to pay. Rental and utility assistance help stabilize housing for households still dealing with the impact of COVID. And our counseling and support services address foreclosure prevention and work with seniors considering transitioning their housing as their health and financial needs change. Our HUD-certified counselors also work with first-time homebuyers to help them prepare for and purchase their first home. Home ownership is a path to wealth creation and financial stability for many families, and one of the best tools for supporting a secure retirement is a home that is paid for.

Financial wellness and financial literacy are valuable for people at all income levels. Free income tax preparation and benefits assessments help low-income older adults find and apply for benefits that help stretch their purchasing power. Interest-free small dollar loan programs and matched savings help individuals avoid predatory lending options, improve their credit scores, and build savings for when they need it. And computer and financial literacy programs help build awareness and access to online resources to avoid fraud, scams and identity theft.

In his estate plan, Benjamin Rose envisioned a way to help people age with comfort and dignity. He saw financial stability as the key. It is empowerment, helping people have a say in what they do and where they live.

April is Financial Literacy Month, and a reminder of the importance of “a little money of her own.”

Visit our website to learn more about housing and financial literacy classes and workshops.