Dallas, Texas (PRWEB) January 22, 2014
Compared to two decades ago, the spending patterns of today’s retirees have changed dramatically:
“Unfortunately, the tax code tends to reward consumption and punish saving,” said Pamela Villarreal, author of the study. “Also, with interest rates as low as they are today, seniors have little incentive to save.”
Health care costs remain a significant portion of expenditures (11.4 percent of expenditures for 65 to 74 year olds and 14.7 percent of expenditures for those 75 and above), though they are not growing as fast as some other categories of spending.
“Reflecting on how seniors spend their money might conjure up a picture of a wealthy couple traveling around the world or a low-income individual having to choose between medicine and groceries. But the truth is somewhere in the middle,” Villarreal said.
Full text: Pamela Villarreal, "How Are Seniors Spending Their Money?” National Center for Policy Analysis, January 2014.
The National Center for Policy Analysis (NCPA) is a nonprofit, nonpartisan public policy research organization, established in 1983. We bring together the best and brightest minds to tackle the country's most difficult public policy problems — in health care, taxes, retirement, education, energy and the environment. Visit our website today for more information.