1 in 3 Guilty of Overspending in Retirement: EBRI

Retiree overspending

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Nearly 1 in 3 retirees (31%) say they are spending more than they can afford in 2024—and that’s up from just 17% saying the same in 2020.

This according to the third Spending in Retirement study from the Employee Benefits Research Institute, fielded during the summer of 2024, which surveyed approximately 3,600 American retirees between the ages of 62 and 75. It is meant to assess how retiree spending patterns and well-being have changed since their retirement.

When the first study was done in 2020, only 17% said their spending is much higher or a little higher than they could afford. The second survey in 2022 found 27% were doing so, and in the survey released Nov. 7 via an EBRI Issue Brief, it was up to 31%.

Given their economic circumstances during retirement, half of the retirees in the 2024 survey said they saved less than what was needed for retirement. One in three said they saved the right amount, and 17% said they saved more than what was needed.

More key findings from the survey:

EBRI was able to fund the development of this research thanks to support from EBRI’s Retirement Security Research Center partners: American Funds/Capital Group, Empower, Mercer, Principal Financial Group, Transamerica Retirement Services, BlackRock, J.P. Morgan, PGIM, and SS&C Technologies.

EBRI members can download the 29-page report here.

SEE ALSO:

• EBRI Finds ‘Substantial Growth’ in Retirement Plan Ownership, Assets

• 9 Key Findings from EBRI’s 2024 Retirement Confidence Survey

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