(ConservativeInsider.org) – While researchers have spent lots of energy over the years understanding how people plan for retirement, there is a lack of knowledge about how that money is spent once people actually leave their careers. With this in mind, the RAND Corporation conducted a years-long study to understand the financial habits of Americans over the age of 65, and some of the conclusions are the same, regardless of the individual’s wealth.
On Wednesday, December 7, the RAND Corporation published its report, “Spending Trajectories After Age 65.” It revealed that Americans spend consistently less than they did previous to their 65th birthday. After accounting for inflation, singles’ spending decreased by about 1.7%, and couples spent 2.4% less. While often spending more on health care, those costs were offset by a reduction in spending for things like vacations.
New report: Americans' personal spending drops consistently after age 65, both among the affluent and those with lower levels of financial resources. https://t.co/tcs8ZxH00w
— RAND Corporation (@RANDCorporation) December 7, 2022
Researchers learned that spending decreases vary only slightly depending on wealth, showing that most people follow the same trajectory. Another unique find is that most retirees spend more money on gifts and donations as they get older, and their economic status typically does not change as they age.
This research was conducted with grants from the National Institute on Aging and sponsored by Insight Investment.
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