Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, July 8, 1993                   TAG: 9307080096
SECTION: BUSINESS                    PAGE: B7   EDITION: METRO 
SOURCE: Knight-Ridder/Tribune
DATELINE:                                 LENGTH: Medium

SENIORS EARNING, SPENDING MORE

Income gains especially in the 65-to-74 age group far outpaced the gains of the population under 65.

The numbers tend to "support assertions of other analysts that we are seeing a `golden age of the golden year,' " BLS economist Pamela B. Hitschler said in the study, which appeared in the BLS Monthly Labor Review.

Incomes for households of people 65 to 74 were up 34 percent after inflation, compared with a gain of 13 percent for those 75 and older, but only 10 percent for those under 65.

One reason for the greater gains in the 65-to-74 group is that their lifetime earnings and contributions to pensions and Social Security were greater than the those 75 and older, the report said.

Data used in the study were collected as part of the BLS's Consumer Expenditure Survey, which is used to determine the mix of products and services included in the monthly Consumer Price Index. In 1990, there were an estimated 20.08 million households of people who were 65 or older.

The biggest spending rise by older consumers was for health insurance - Blue Cross, Blue Shield, HMOs and insurance supplements. But the greater spending on insurance apparently reduced the out-of-pocket spending for physician services and other medical care, according to the study.

Social Security payments made up the largest part - 44 percent - of older consumers' earnings. Wages and salaries remained the second-highest source of income, at 19 percent.

Other findings showed that home ownership increased for older households and more older households had cars.