As the District faces both a recession and constrained revenue, it is important that the elected officials focus resources on those who most need support. What the data shows is that the income and wealth inequality, driven by racial disparities, among the population overall extends to residents over age of 65. By every measure, such as median income, poverty rate, and homeownership, older Black residents are significantly worse off than older white residents. DC policymakers should employ targeted strategies for addressing the financial needs of older residents with the least resources, who are disproportionately Black, rather than implementing blanket policies for nearly anyone over 65.
Older Black Residents Experience Disproportionate Poverty and Significantly Lower Incomes
Systemic racism creates structural disadvantages for Black DC residents from childhood through their prime working years. Black workers have worse employment outcomes than white workers by every measure, such as lower wages and higher unemployment. These lifelong disparities translate into higher poverty and lower income among Black older adults in the District.
From 2020 to 2024, on average, 15 percent of older adults—those over the age of 65—lived below the poverty line. Older Black residents disproportionately experience poverty: In the same period, 23 percent of older Black adults in the District lived below the poverty line, compared to 4.5 percent of older white adults.
Older Black residents also have significantly lower median income. From 2020 to 2024, on average, older Black residents had a median income of $47,178—less than the overall median income for those over 65 ($74,238) and less than a third of the median income of older white residents ($145,673) (Figure 1).
Figure 1
The gap in median income is even more extreme by ward. Older residents living in predominantly Black Ward 8 earned a median income of just $29,948 compared to $145,084 in predominantly white Ward 3 in the same period (Figure 2).
Figure 2
Income distribution among older adults shows the extent of racial disparities. From 2020 to 2024, older adults in the top fifth of the income distribution among DC residents over 65—71 percent of whom were white—received 63 percent of aggregate income (Figure 3). In contrast, older adults in the bottom fifth of the distribution—81 percent of whom were Black—received only 1.5 percent of total income among those over 65.
Figure 3
The differences in income between Black and white older households may be even greater than American Community Survey’s income estimates show. Research shows that older adults often underreport income to the Census Bureau—mainly from withdrawals from retirement accounts and defined benefit pensions—and white households disproportionately hold retirement accounts.
Extreme Wealth Inequality Fuels Racial Disparities Among Older Residents
The income gap for Black and white older residents likely stems from disparities in income and wealth accumulation over their working years. Retired older adults draw from accumulated wealth—such as retirement savings, stocks, real estate, and other assets—to help sustain themselves in retirement on top of any Social Security income they receive. However, wealth disparities by race are even more extreme than income disparities, with white households in the DC area having 81 times the wealth of Black households.
Although no survey provides comprehensive estimates of accumulated wealth among DC residents over 65, national research shows white households are more likely to own a retirement account than Black households. White adults ages 51 to 64 who have a retirement account also have significantly higher account balances compared to Black adults of the same age with retirement accounts nationally. Income data for those over 65 in DC bears out these disparities, with only 45 percent of Black residents over 65 having any income drawn from retirement savings, on average from 2020 to 2024, compared to 62 percent of older white residents. Older Black adults rely more on Social Security for their income because of having less retirement savings.
Wealth disparities among older DC residents also show up clearly in homeownership rates and home values. A home is generally the most valuable asset that homeowners possess, and this is especially true for Black and Latino homeowners, who derive a disproportionate amount of their wealth from homeownership. From 2020 to 2024, on average, nearly 60 percent of older DC adults owned their home. Yet homeownership rates vary by ward. In predominately white Ward 3, 73 percent of adults over 65 owned their home, compared to just 28 percent in predominantly Black Ward 8. Moreover, due to historic racist housing policies like restrictive housing covenants and redlining and the current undervaluing of homes in predominantly Black areas compared to white areas, home values East of the River are significantly lower than those in Wards 2 and 3, per American Community Survey five-year data. This gives homeowners in Ward 8 less equity to draw upon in retirement.
DC Lawmakers Should Target Policies Toward Older Adults with the Least Resources
The data show the financial situations of older adults across the District vary widely, especially by race. While some older adults have limited fixed incomes, others hold significant amounts of wealth they can draw upon in retirement. When considering policies for older residents, DC policymakers need to ensure that assistance goes to those truly in need.
For example, the Senior Citizen or Disabled Property Owner Tax Relief program reduces property rates by 50 percent for households with adjusted gross income below $159,750, but that limit is significantly higher than the median income among households of all ages and the credit only benefits homeowners. The Office of Tax and Revenue concluded in 2022 that wealthier households benefited more from the property tax benefit, characterizing it as “somewhat regressive.” Yet the District is projected to forgo more than $36 million in revenue in fiscal year 2027 for this credit. In a particularly tight budget season, the Council should reexamine whether tax credits and programs for residents over 65 are well designed to target those most in need and if there are opportunities to reallocate some funds to more targeted anti-poverty programs.
As data on income and wealth disparities in DC makes clear, age itself is not a consistent measure of financial need. DC lawmakers should avoid blanket policies targeting older adults and ensure that support is directed to those with the least income and wealth.
