< Back to Mary's Blog
November 20, 2015 2:40 pm
On average, households spend less once they retire—but not all households, and not in the same ways, report analysts at the Employee Benefit Research Institute (EBRI). In fact, according to a recent EBRI study, nearly half of retired households actually spent more than they did just before retirement. That spending, however, declines over time—by the sixth year of retirement, just a third spend more than they did pre-retirement.
“We also found that households that spent more in the first two years of retirement were not exclusively high-income households,” says Sudipto Banerjee, research associate at EBRI and author of the report. “Rather, they were distributed across all income levels.”
Furthermore, the median household had a home mortgage payment before retirement, but none after, indicating paying off a mortgage could be a factor in the timing of retirement, according to the study.
Other findings include:
• In the first two years of retirement, median household spending dropped by 5.5 percent from pre-retirement spending levels, and by 12.5 percent by the fourth year of retirement. The spending reduction slowed down after the fourth year.
• In the first two years of retirement, two in five households (39.3 percent) spent less than 80 percent of their pre-retirement spending. By the sixth year of retirement, a majority (53.1 percent) of households did so.
• In the first two years of retirement, 28.0 percent of households spent more than 120 percent of their pre-retirement spending. By the sixth year of retirement, 23.4 percent of households still did so.
Published with permission from RISMedia.
|Each RE/MAX office is independently owned and operated |
RE/MAX 440, PA
If you are a home owner in the Blue Bell area and are thinking of placing it on the market, this site contains information about preparing your home for sale, selecting the right agent, pricing your home appropriately, marketing it effectively, going through the inspection processes, and receiving a timely market evaluation. This site features houses and condos for sale in Montgomery County, Pennsylvania. Looking for property in and around Blue Bell, Pennsylvania? Residential, Commercial, Land-Lot or Rental, we can help with all your real estate needs. On this Blue Bell real estate site find Blue Bell In Town and Suburban Properties, Land, Lots, Blue Bell Golf Homes for Sale, Luxury Estates, Town Homes, Blue Bell New Homes for Sale, Blue Bell Condos, Town Homes, Real Estate, Blue Bell Luxury Estates, Equestrian Estates and Blue Bell Executive Homes For Sale. Mary Mastroeni with RE/MAX Central - Blue Bell is here to help home buyers and home sellers through the real estate process in Montgomery and Bucks County. Blue Bell Homes for Sale and Blue Bell Real Estate - Buying or Selling Blue Bell Real Estate.
Servicing: Skippack, Blue Bell, Bryn Mawr, Devon, Delaware County, Wyncote, King Of Prussia, Bucks County, West Point, Lafayette Hill, Norristown, Colmar, Montgomery County, Warrington, Worcester, Bala Cynwyd, Villanova, Fairview Village, Eagleville, Narberth, Gwynedd Valley, Horsham, Montgomeryville, Haverford, Gladwyne, Chester County, Conshohocken, Glenside, Lansdale, Line Lexington, Flourtown, Wayne, Plymouth Meeting, Harleysville, Ambler, Philadelphia County, Audubon, Bridgeport, Creamery, Kulpsville, Dresher, North Wales, Mainland, Philadelphia, Lederach, Gwynedd, Chalfont, Fort Washington, Oreland, Valley Forge, Spring House, Cedars, Souderton, Hatfield