Federal poverty guideline underestimates costs of living for older persons in California.

he new Elder Economic Security StandardTM Index (Elder Index) for California documents that the federal poverty guideline covers less than half of the basic costs experienced by adults age 65 and older in the state. The federal poverty guideline is often used to determine income eligibility for public programs and in allocating resources to communities. The federal poverty guideline for a single person in 2007 was an annual income of $10,210, and for an older couple it was $13,690 (Exhibit 1). According to the Elder Index calculations at the county level, however, a basic annual cost of living for a retired older adult with good health in rental housing in California averages $21,011, and reaches $27,550 in San Mateo County (Exhibit 1). For an older couple the average is $30,472 and reaches $37,263 in San Mateo County. T