New Paper: Retirees Spend Lifetime Income, Not Savings
Our analysis found much higher spending rates from lifetime income sources than from wages or capital income.
Even when they can easily afford it, many retirees are reluctant to spend their savings to enhance their lifestyle. Instead, they rely far more on lifetime income sources—such as Social Security, pensions, and annuities—than on withdrawals from IRAs and other retirement accounts.
These findings come from a new study, Retirees Spend Lifetime Income, Not Savings, by David Blanchett and Michael Finke, Research Fellows at the Retirement Income Institute (RII) of the Alliance for Lifetime Income. The research builds on their groundbreaking RII paper from last year, Guaranteed Income: A License to Spend, which showed that retirees enjoy life more when they feel comfortable spending their money.
Read the full press release here.
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