In case you think that older people are living large, the Kaiser Family Foundation has an interactive tool that will quickly change your mind. What’s particularly interesting is the demographic data.
Overall, in 2013, half of all people with Medicare had incomes below $23,500 and four out of five had annual incomes of less than $48,000. Only ten percent had annual incomes above $70,000. One in 20 had annual incomes above $94,000.
Not surprisingly, average annual income rises with education. In 2013, college graduates with Medicare had an average annual income of $41,000 as compared with high school graduates, whose average annual income was only a little more than half that, $21,400.
Average annual income for men with Medicare, $25,850, was almost 20 percent higher than for women, $21,800
Average annual income for White people with Medicare, $26,400 was almost double that of Hispanic people, $13,300 and about 60 percent more than Black people, $16,350. (Here are four things to know if your income is low and you have Medicare. And here are five programs to lower your costs if you have Medicare.)
Savings were also far less than many would presume. In 2013, half of all people with Medicare had savings below $62,000, and four out of five of them had savings below $317,000. Only ten percent had savings above $620,000 and one in 20 had savings above $1,113,000.
Education is a big driver of savings. Average savings for college graduates was $216,200, more than four times savings of people with only high school degrees, $49,200.
Average savings for men, $69,600, was almost 30 percent higher than for women, $54,700.
Average savings for White people with Medicare, $89,500 was almost ten times more than Hispanic people, $9,300 and almost nine times more than Black people, $10,300. (Not surprisingly, the vast majority of Americans want to expand Medicare and Social Security or keep them at current levels.) Fortunately, Medicaid covers significant health care costs for people with Medicare with low incomes.