NEW YORK — A new study finds many U.S. retirees keep saving even after they’ve retired. The average American over the age of 60 cuts spending 2.5 percent per year, or about 20 percent over a 10-year period, Bloomberg reported.
As a result, millions of Americans are living too frugally, said Matt Fellowes, United Income’s CEO. On average and adjusting for inflation, retirees are entering their 80s richer than they were in their 60s and 70s.
Other studies have found affluent older Americans hoarding money. Last year, a study in the Journal of Financial Planning found that the wealthiest fifth of U.S. retirees were spending 53 percent less than they could have. Researchers looked at all the logical reasons why affluent retirees might be so tight-fisted, including the desire to leave an inheritance or worries about future medical needs. The big motivator turned out to be some version of fear they would run out of cash too early.
The full story is available at Bloomberg.com.