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Just found this report from the Social Security Administration on senior spending. It is long and I am looking for summaries which I will link if I find. I am posting it because this topic comes up often and there is a lot of research data in it. http://www.ssa.gov/policy/docs/chart...-aged-2010.pdf
Most noteworthy is that housing is the largest component of the average retiree household’s expenditures. In fact, housing represents 35% of expenses followed by transportation (14%); out-of-pocket health care (13.2%); food (12.3%); entertainment (5.1%); and apparel (2.6%). Other expenses, such as alcohol, personal care, reading, education, tobacco, miscellaneous items, cash contributions to persons or organizations outside the household, personal insurance, pension contributions, and Social Security payroll taxes, accounted for 17%. And Social Security payroll taxes and pension contributions were small components of total expenses (3% and 1%, respectively).
Yes, it's long! Interestingly, there is also a chart on incomes, although incomes are not the main focus. The incomes of "Consumer Units" (households, basically) aged 65 and above are broken down in quartiles; the lowest quartile has incomes of $16,207 and below and the highest quartile $51,148 and above. Even though measurements of incomes do not include assets, which often can be sold off piecemeal (depending on the nature of the asset) to generate extra income as needed, I was still surprised by how low the income figures were. Heavens, $51,000 is very modest but only 25% of households where the primary individual is 65 and above have that amount or more. And 25% have $16,000 or less? Maybe that represents a lot of people in the hinterlands where costs are low and extended families help each other out? I really don't know.
I am not really as its not retiree income available.Its retirees rememebr who often own a home even if its their highest reproted overall spending.It likie alot of reproting shows that basic all sectors are not spending or investing much of wealth.Perhpas the reason GDP is low do you think?
Yes, it's long! Interestingly, there is also a chart on incomes, although incomes are not the main focus. The incomes of "Consumer Units" (households, basically) aged 65 and above are broken down in quartiles; the lowest quartile has incomes of $16,207 and below and the highest quartile $51,148 and above. Even though measurements of incomes do not include assets, which often can be sold off piecemeal (depending on the nature of the asset) to generate extra income as needed, I was still surprised by how low the income figures were. Heavens, $51,000 is very modest but only 25% of households where the primary individual is 65 and above have that amount or more. And 25% have $16,000 or less? Maybe that represents a lot of people in the hinterlands where costs are low and extended families help each other out? I really don't know.
Escort, one of the major reasons I posted it is because of what you are referring. It paints a picture that I was not as clear on as the data shows. I was hoping someone would read and comment because like you I really didn't know and it surprises me. I hope more read or at least read part of the report and provide some insight.
The income is based on income before taxes which means it does not include all welth. I am not surprise at the level since since it from 2010 > if you look at a comopnay now you will see income and cash o hand listed because that is very high often even beyond profits for a year. nther reported show that thoswe over 50 yeara of age owned 90% of the wealth i the world.That also is nott hat shock when you look closely at aging poualtions;when people ontain wealth etc.
Right now I would love to see a chart of wealth distribution for families over 65.
My current real estate taxes are $5200/yr, go up a few hundred every year. I have a legal one-bedroom hosue of 1250sq.ft. I had a first-floor bed and bath and laundry for possible old age problems (although have already been saved by it with a serious infected ankle dog bite). I fear that even when I pay the house off, the taxes will be ridiculous.
The only expense I will lose in retirement is the 40-mile roundtrip to work in a 32mpg car. No special clothes, no eating out (third shift), nothing I have to buy for work. Oh, and I guess I won't be saving into my 403b then, either.
There isn't a real downsizing around here for me, unless I bought a one-bedroom box condo with no dogs. Rents keep going up. Also, anything near public transport is more expensive. I am trying to take this all into account for my planning. I don't want to move somewhere unknown for basic cheaper living (and likely, more humidity).
Brightdoglover, I don't know where you live but it is obviously very expensive. You mentioned not wanting to move because that would mean more humidity so I assume you are living in the NE. Unless you are locked in with friends/family, you really should consider moving. The US is full of great options. You don't need to move to Florida, NC or some other area with hot, humid summers. CityData is a great place to do some initial research. Also spend some time looking at cost of living elsewhere. When taxes are high, that usually means all costs are high so if you move you may find you have way more disposable income and the opportunity for travel and other things you might like to do.
one of the problems with that report is that the spending changes can be more income related than age related.
it is not like they follow the same age group through the different time frames.
each age group had spending patterns that really may have not changed as much from age as from culture and income.
the age group that were depression children may have very different spending ideas than a younger group today.
that group may always have spent less over all through out their lives but we really do not know that.
the younger groups earned more over a lifetime than older groups as well , and as result have higher ss payments and pensions than counter parts who are older.
plain and simple many older just have less income to spend so there pattens may reflect that fact more than age related changes in spending.
you really need to track a particular age group from 60 on through all the different age groups which can take decades to know if spending patterns are a result of age or just finances.
one of the problems with that report is that the spending changes can be more income related than age related.
it is not like they follow the same age group through the different time frames.
each age group had spending patterns that really may have not changed as much from age as from culture and income.
the age group that were depression children may have very different spending ideas than a younger group today. the younger groups earned more over a lifetime , and as result have higher ss payments than counter parts who are older.
plain and simple many older just have less income to spend so there patterens reflect that fact more than age related changes in spending.
you really need to track a particular age group from 60 on through all the different age groups which can take decades .
The report is from the SSA with the intent of providing data on the spending patterns of seniors. It can be used as applied data for various purposes as needed. Example, the relationship of CPI components to the actual spending patterns of seniors at varying yearly expenditure points. Is the CPI more accurate for higher or lower income seniors.
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