New Strategist Press editorial director Cheryl Russell takes a look at top line insights from the latest Employee Benefit Research Institute, Change in Household Spending After Retirement: Results from a Longitudinal Sample, which addresses household spending trends among those near or after retirement.
Russell highlights a counter-intuitive trend, which is that although many people move into a period where their incomes are fixed, after their careers, their household spending in many cases goes up. Russell writes:
Analyzing data from the longitudinal Health and Retirement Study, EBRI researcher Sudipto Banerjee finds a rise in spending for many retirees. In the first year or two of retirement, 46 percent of households spend more. By the sixth year of retirement, 33 percent are spending more than they had in their pre-retirement years.
This is important intelligence for developers of 55+ housing, both market rate and affordable.