In this age of longer life spans, age 50 might not seem old, but housing and health care spending are having a significant impact on the over 50 cohort; one that’s growing, according to a new report from the Employee Benefit Research Institute and the Institute for Social Research at the University of Michigan
“Home and home-related expenses remain the single largest spending category for older Americans, followed by health care expenses,” said Sudipto Banerjee, research associate with EBRI and author of the new report. “However, health care spending is the only component which steadily increases with age: It captures around 10% of the budget for those between 50 and 64, but increases to about 20% for those aged 85 and over.”
Data from the report also shows that demographic sub-groups such as singles, blacks and high school dropouts are outspending their resources in retirement.