Two year ago, I produced a piece on how baby boomers spend their money. I wanted to find out why many of them were not nearly prepared for retirement. This time around, I wanted to find out how senior citizens were spending their money. A lot has changed compared to the same age group just 20 years ago:
- Today’s seniors (age 65 and older) have a lower poverty rate than the national poverty rate, and the lowest rate since 1993. (as defined by the FPL)
- Senior’s expenditures have increased 1% per year on average since 1990, inflation-adjusted. (Based on CES data)
- More seniors carry a mortgage (or home equity-type loan) than in 1990.
- More seniors own or lease a vehicle than in 1990.
- Seniors are spending more on pets and hobbies, reflecting their varied interests and independence.
In essence, 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. Read more.