Spending Trajectories After Age 65

Summary

Key findings from the report:

• Real spending—that is, spending adjusted for inflation—declined for both single and
  coupled households after age 65 at annual rates of about 1.7 percent and 2.4 percent,
  respectively.
• Real spending declined for all initial wealth quartiles, although with some modest
  variation.
• The fact that spending declines broadly, including among those in the highest wealth
  quartile, suggests that the decline may not be related to economic position. (See Figure
  S.1.)
• The view is supported by an analysis of budget shares, the fraction of total spending
  devoted to subcategories of spending.
• The budget share for gifts and donations increases with age, which suggests that
  economic position on average does not deteriorate with age, even as spending declines.

Charts & Graphs