Lack of sufficient savings, inflationary pressures and rising credit card debt are contributing to dampened spending by retirees, according to a new study from the Employee Benefit Research Institute.
“Compared with 2020, fewer retirees indicated that they would spend down all or a significant portion of their financial assets over the course of their retirement,” Bridget Bearden, an EBRI research and development strategist, said in a statement. “These spending constraints contribute to declining levels of well-being in retirement, with retirees rating two out of three well-being measures lower in 2024 than they did in 2020 and 2022.”
Bearden noted that longer job tenure, fewer employers over a career, more years participating in a retirement plan and the presence of guaranteed income in retirement are correlated with more positive outlooks on spending and well-being.
EBRI fielded the study during the summer, surveying 3,661 American retirees between the ages of 62 and 75 who considered themselves retired and not working, retired but working part time, or had an active labor market status but considered themselves retired from a primary career.
The survey sought to understand the respondents’ current financial situation, understanding of income sources, sources of information, retirement goals and satisfaction.
See the gallery for 12 key findings in the report.
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