Brief How Quickly Do Older Adults Spend Their Wealth?
Rudolph G. Penner, Karen E. Smith
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Although the shift from defined benefit pension plans to defined contribution plans raises concerns that some retirees may outlive their assets, most spend their wealth cautiously. High income retirees continue to accumulate wealth until age 85. Net worth for middle-income retirees begins declining after age 70, but only very slowly. Low-income retirees never accumulate much wealth and spend their limited assets quickly, however, leaving most dependent on Social Security.
Research and Evidence Tax and Income Supports
Expertise Wealth and Financial Well-Being Aging and Retirement
Tags Economic well-being Asset and debts Retirement policy Dynamic Simulation of Income Model 4 (DYNASIM4)