Title | Understanding Expenditure Patterns in Retirement |
Publication Type | Report |
Year of Publication | 2005 |
Authors | Butrica, BA, Goldwyn, JH, Johnson, RW |
Series Title | Urban Institute Research Report |
Institution | Center for Retirement Research at Boston College |
City | Boston |
Call Number | wp_2005/CRRwp_2005-03.pdf |
Keywords | Consumption and Savings, Income |
Abstract | 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. |
URL | https://www.urban.org/research/publication/understanding-expenditure-patterns-retirement |
Endnote Keywords | Retirement Incomes/Consumption |
Endnote ID | 15160 |
Citation Key | 5628 |