“In the study, Mace, Grabowski, and four other researchers from the University of Chicago and the University of Maryland broke middle-income seniors into two groups. The “young old,” between 75 and 84, were able to draw on $25,000 to $74,000 a year per person from savings and investments. The “old old,” those 85 and older, were able to draw on $24,000 to $95,000. The income range was wider in the older group partly because more are widowed.
Only about 54 percent of the people in this middle-income group will be able to meet the estimated annual costs of $60,000 for assisted-living rent and other expenses, researchers found. Middle-income individuals under 75 weren’t included in the study because many are working and most live independently.”