Thursday, June 15, 2017

By the Numbers: Spending Habits of Older Americans

"It’s no secret that people’s needs and spending habits change over time. For Older Americans Month, we took a look into the data to highlight some of the spending changes.  Check out these Consumer Expenditure Survey fast facts and see how your spending stacks up to those of the older generation:
  • Older households are more apt to be homeowners (79 percent) than younger households (57 percent). Please note: By “older households,” we mean those with a reference person (often the principal homeowner or renter) 65 years and older, and by “younger households” we mean those with a reference person under 65 years.
  • Housing is the greatest expense, both in dollar amount ($15,529) and as a share of the household budget (34.8 percent) among older households.
  • Older and younger households are similar in that 85 percent of older households and 88 percent of younger households own or lease at least one vehicle.
  • Transportation expenses among older households, however, are lower in dollar amount ($6,846) and as a share of the household budget (15.3 percent) compared with younger households ($10,310 and 17.4 percent, respectively). That’s probably because older households have fewer earners and would be less likely to have job-related transportation costs.
  • Because older households have fewer earners, pensions and Social Security costs are much lower in dollar amount ($2,401) and as a share of the household budget (5.4 percent) among older households compared with younger households ($7,118 and 12 percent).
  • Out-of-pocket healthcare expenses are higher in dollar amount ($5,766) and as a share of the household budget (12.9 percent) among older households compared with younger households ($3,912 and 6.6 percent)...."

Older Americans and spending

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