Changes in the incomes of age groups, 1984-89.

In terms of changes in the incomes of age groups, the 1984-89 period was very different from the periods that immediately preceded it. This summary focuses on changes for aged family units. During the 1984-89 period, the rate of growth of real median income of aged units was substantially lower than in other subperiods since 1967, the first year for which comparable detailed estimates are available. During the 1984-89 period, the ratio of aged to nonaged median incomes fell for 4 consecutive years, after generally rising since about 1970. The relative medians of almost all detailed aged age groups fell at least slightly from 1984 to 1989, after a period of substantial rises. The increases in income for aged units during 1984-89 were higher for high-income units than for low-income units, producing an increase in inequality. The percentage of aged persons who were poor fell slightly from 1984 to 1989, but that percentage remained above the rates for other adult age groups. A relatively high percentage of aged persons had income that was less than 50 percent above the poverty threshold. The increase in the real mean total income of aged units from 1984 to 1989 was the net result of substantial increases in earnings and pension income and a substantial decrease in property income. In contrast, the much larger increase in real mean total income for aged units from 1979 to 1984 was characterized by a large increase in property income, substantial increases in Social Security benefits and pension income, and a small decrease in earnings.