Senior Living History: 1940–1949
World War II and the Social Net
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The 1940s were a pivotal decade for America’s senior population, as they were shaped by World War II and subsequent social reforms. During World War II, many seniors came out of retirement to help with the war effort and filled jobs in factories, farms and offices.
After 1945, returning servicemen reclaimed those jobs. That created new challenges for seniors. They went back to retirement with limited employment prospects due to age discrimination in the workplace and limited savings. Programs like Social Security and Old Age Assistance provided crucial financial support. In this article, we’ll take a closer look at the policies and programs that impacted older adults in the 1940s.
Table of Contents
Old Age Assistance: A Needs-Based Program for Seniors
The Old Age Assistance (OAA) program, established as part of the Social Security Act of 1935, provided financial support to needy seniors. Social Security is a social insurance program funded through payroll taxes, while OAA was a needs-based program funded by the federal and state governments. To qualify for OAA, individuals had to meet age and income requirements, and their assets were strictly assessed.
The maximum monthly payment eligible for federal matching rose from $30 to $45, with the federal government covering half of the amount. States administered the program and determined eligibility, which created a range of average benefits across the country.
By 1940, all states had established OAA programs. About 22 percent of the population ages 65 or older were participating. OAA provided crucial support to millions of older Americans during the 1940s who desperately needed it. OAA was essentially replaced by Supplemental Security Income (SSI) in 1974.
| Percent of 65+ receiving benefit | Average annual benefit | Average monthly benefit | Gross expenditures | |
|---|---|---|---|---|
| 1934 | 3% | $174 | $14.50 | $31.2 million |
| 1940 | 22% | $241 | $20.01 | $474 million |
| 1947 | 22% | $420 | $35.04 | $960 million |
Most people ages 65 or older receiving OAA were not retired. About half of all men ages 65 to 74 still worked during this period (Friedberg, 1998). That indicates that so many employed seniors earned so little that they qualified for welfare benefits, while others couldn’t work at all and had to rely on assistance.
By 1948, the average OAA benefit ($38.18 per month) significantly exceeded the average Social Security benefit ($25.13 per month), potentially discouraging individuals from preparing for retirement through work and savings.
Did You Know? As OAA benefits expanded during the 1940s, states increasingly allowed the funds to be used to pay for nursing home care for eligible seniors. That reliable source of payment contributed to the growth of nursing facilities in the post-war period, as care providers could now receive stable government funding for their services to low-income elderly residents.
Social Security initially provided retirement benefits only to workers, but the 1939 amendments expanded coverage to include widows, widowers and dependent children of deceased workers. The expansion was designed to shift vulnerable populations from welfare programs to insurance-based support. The most substantial expansions in coverage and benefit levels, however, wouldn’t occur until the 1950 amendments.
National Health Care Plan Defeated
Public interest in national health insurance increased during the 1940s. It would be another 20 years, though, before President Lyndon B. Johnson signed the Medicare and Medicaid Act of 1965, creating the Medicare program.
In 1945, President Harry S. Truman proposed a national health care plan to Congress. People feared tax increases and too much reliance on the federal government, and that fear was also spread by the American Medical Association. At the same time, labor unions and the insurance industry encouraged employers to provide health insurance to their employees.
The issue resurfaced during Bill Clinton’s and Barack Obama’s administrations. The 2010 Affordable Care Act has been lauded by many, but disliked by some Americans who object to the government’s involvement in health care.2
Health Care Advances
Hill-Burton Act Stimulates Hospital Construction
Recipients could now use funds from government payment programs such as Social Security and veterans benefits for nursing home care, which contributed to the development of long-term care facilities across the country.
World War II had halted hospital construction and development, and by war’s end, many existing health-care facilities required replacement or modernization. The inadequate state of the nation’s health-care infrastructure became evident and demanded attention.
During the controversy over national health insurance, senators Lister Hill of Alabama and Harold Burton of Ohio proposed hospital construction financing in a separate bill called the Hill-Burton Act. Compared to comprehensive national health insurance, the Hill-Burton Act seemed affordable and uncontroversial, allowing it to pass with little opposition. Hill-Burton provided federal financing for constructing new hospitals in underserved rural and poor areas, while also modernizing hospitals in metropolitan regions. The legislation allowed funding for nonprofit hospitals as loans, with repayment partially fulfilled through providing free care to those who couldn’t afford it.3
Hill-Burton financing led to substantial growth in public and nonprofit hospital construction. Federal and state governments now designed, regulated and financed health-care institutions. As newer facilities were built, many older hospitals — along with hotels and other buildings — were converted into nursing homes to meet the growing demand for long-term care for seniors.
GI Bill and Housing Act
The GI Bill, formally known as the Servicemen’s Readjustment Act of 1944, provided veterans with low-cost mortgages, educational funding and unemployment compensation. The low-cost mortgages enabled many veterans to purchase homes, build equity and increase their financial security, which would benefit them in their retirement years. By fostering widespread home ownership, suburban areas expanded, creating new housing options for many, including seniors.
The Housing Act of 1949, building upon the foundations of legislation the previous year, addressed the severe post–World War II housing shortage, especially for returning veterans. The act indirectly benefited seniors by increasing the overall availability of housing. It focused on urban renewal and public housing, and it created new housing opportunities for many people, including older adults.
Lifestyle and Travel
During the early 1940s, older adults primarily engaged in social activities centered on family, church and local community events. They were limited by wartime restrictions and economic constraints. Travel was confined to local trips and train journeys for people with means. As the war ended, a renewed emphasis on family reunions and community celebrations emerged, with seniors actively participating in victory parades and social gatherings that marked the end of the conflict.
Post-war prosperity expanded leisure options for Americans. Seniors enjoyed going to the movies in the 1940s and listening to Jack Benny, Bob Hope, and Fibber McGee and Molly on the radio.4 Big band music and swing was popular too.
Transportation also changed during the ’40s. The rise of car ownership and the development of highways facilitated longer road trips. Organizations such as the Automobile Association of America (AAA) promoted car travel, providing older adults with road maps and travel guides that opened new possibilities for exploring the country. In 1944, AAA standardized its travel departments and the selection and training of travel counselors.5
People with financial means wanted to travel to warm climates such as Miami Beach and Palm Springs, but airline travel was not as easy as it is today. Planes flew at low altitudes and bounced around with the wind and adverse weather. People frequently became sick. A coast-to-coast round-trip ticket cost around $260, which was about half the price of a new automobile at the time. Therefore, the wealthy and business executives were the only ones who could afford to fly during the 1940s.6
Social Security Administration. (2025). Research Note #3: Details of Ida May Fuller's Payroll Tax Contributions.
Truman Library. (2025). The Challenge of National Healthcare.
National Library of Medicine. (1996). Tuberculosis surveillance using death certificate data, New York City, 1992.
Wikipedia. (2025). The Pepsodent Show.
AAA. (2025). AAA Timeline.
National Air and Space Museum. (2025). Early Commercial Aviation.
Social Security
The Social Security Act was passed in 1935. The same year, the Federal Insurance Contributions Act (FICA) created the payroll tax system we have today to fund Social Security benefits. Social Security’s 1939 amendments expanded the program to include survivors’ and dependents’ benefits, which were vital as the war created thousands of widows and orphans who needed financial assistance.
Our country’s disabled population also grew significantly after the war. Many veterans who were newly disabled needed long-term care. The Veterans’ Administration (which later became the Department of Veterans Affairs) expanded services through new veterans benefits that provided for disabled vets and surviving spouses. Meanwhile, by 1949, Social Security grew immensely and served approximately 2.7 million beneficiaries.
Did You Know? Social Security issued its first monthly retirement check on Jan. 31,1940, for $22.54 to Vermont resident Ida May, a legal secretary who retired at age 65.1 You’ll probably receive more than that. To estimate how much you’ll receive in Social Security benefits, use our updated Social Security calculator.