THIS administration will continue to build on the efforts of President Kennedy to make this a better country for its older citizens. Under my 1965 budget proposals the federal Government will spend an estimated $19 billion from budget and trust funds for benefits and services for older persons. We are moving ahead to keep the older American from becoming a second-class citizen.

Our programs in income maintenance, our efforts in supporting private industry in the building of better housing for older people, our investments in research, our assistance in the provision of medical facilities--these and other actions are bringing us closer to the time when elderly people generally can enjoy the independence and the sense of purpose and accomplishment that are their due.

Much more needs to be done to brighten the later years.

Longer life is both a major achievement and a major challenge of our time. Nearly 23 years have been added to the average lifetime in our century. A child born in 1900 could expect 47 years of life; his grandchildren, born today, can look forward to 70. They will carry the continuity of America well toward the middle of the 21st century.

Today nearly 18 million men and women in the United States have reached or passed their 65th birthday. Approximately one-third of them are 75 or over. More than 12,000 have lived 100 years.

for these older Americans--and for those of us moving each year to join them--the lengthening of life gives an opportunity for a new dimension to living. The increased span of retirement provides time for self-realization, creative endeavor, and public service.

Old age is not a problem in itself. But the fact is, millions of older Americans face many problems. They face:

--The problem of poverty. There are 3 million elderly families with incomes of less than $3,000 a year, and two-thirds of all elderly persons, who live alone or with non-relatives, have incomes below $1,500.

--The problem of housing. One out of each five dwelling units occupied by persons over 60 is substandard.

--The problem of health. Older people need much more medical service than younger. They have much less money to pay for it.

--The problem of employment. Age alone is a too-frequent excuse to remove men and women needlessly and arbitrarily from active participation in life.

We must attack all these problems all the time, if we are to achieve goals of security and opportunity for all older Americans.

To fall behind on one front is to fall behind on all fronts. Poverty is an all-pervasive blight. And so are miserable housing, poor health, and social banishment.

One of the most urgent orders of business at this time is the enactment of hospital insurance for the aged through social security to help older people meet the high costs of illness without jeopardizing their economic independence.

This program would not only be a major attack on health problems among older people but a major attack on poverty.

At the same time, I urge all States to adopt adequate programs of medical assistance for the aged under the Kerr-Mills legislation. This assistance is needed now, and it will be needed later as a supplement to hospital insurance to deal with those special problems that private insurance and the social insurance program will not cover.