Which statement best explains the factors contributing to financial insecurity among the elderly?

• A. Social security income fully covers retirement needs, ensuring security.
• B. Life expectancy is stable and costs do not rise.
• C. Pension plans from employers have expanded.
• D. Increases in life expectancy require resources to last longer, while healthcare and housing costs rise and employer pension plans have decreased.

Answer: (D)

The factors that create financial insecurity in older adults center on resources needing to last longer as people live longer, while costs rise and traditional pension protections have diminished. When life expectancy increases, retirement savings and Social Security must stretch over more years, raising the risk of outliving funds. Healthcare costs tend to rise with age—doctor visits, medications, chronic disease management, and potential long-term care can be expensive even with Medicare. Housing costs can also climb or become more burdensome if home adaptations, maintenance, or taxes rise. At the same time, employer pension plans have become less common or have shifted from guaranteed benefits to uncertain defined-contribution plans, which means fewer predictable, guaranteed retirement income. All together, these dynamics explain why financial insecurity persists among the elderly.

The other statements don’t fit because Social Security alone rarely covers all retirement expenses; life expectancy has been increasing and costs have generally risen, not stayed flat; and employer pension plans have not expanded in a way that would reduce insecurity.