Understanding expenditure patterns in retirement

Butrica

Barbara A.

Butrica, Barbara A.

Author

Goldwyn

Joshua H.

Goldwyn, Joshua H.

Author

Johnson

Richard W.

Johnson, Richard W.

Author

text

working paper

Chestnut Hill, Mass. Center for Retirement Research at Boston College20052005monographic

Chestnut Hill, Mass.

Center for Retirement Research at Boston College

2005

monographic

Englisheng

English

eng

electronicapplication/pdfborn digital

electronic

application/pdf

born digital

Understanding the consumption needs of retirees is critical to assessing the adequacy of retirement income and the possible impact of Social Security reform on the well-being of older Americans. This study uses data from the Health and Retirement Study, including a recent supplemental expenditure survey, to analyze spending patterns and consumption needs for adults ages 65 and older. Results indicate that typical older married adults spend 84 percent of after-tax household income, and nonmarried adults spend 92 percent of after-tax income. Even at older ages individuals devote a larger share of their expenditures and income to housing than any other category of goods and services, including health care. Fully 8 percent of married adults report after-tax incomes that fall short of our estimated basic-needs threshold, consisting of housing, health care, food, and clothing. By comparison, only 3 percent of married adults have incomes below the official poverty level.

Barbara A. Butrica, Joshua H. Goldwyn, and Richard W. Johnson.

CRR WP2005-3

CRR WP

2005-3

http://crr.bc.edu/images/stories/Working_Papers/wp_2005-03.pdf

MChBEnglisheng

MChB

Englisheng

English

eng