The U.S. Economy’s Secret Weapon: Seniors With Money to Spend – WSJ
Many of those who are recently retired over-saved for retirement – a concept that at first glance seems a odd. But economic research has found that most college educated would have been better off spending some of their money, when young, to take advantage of life experiences that may only be available when young. As one retiree quoted in the WSJ article says, ‘“The one million Americans who didn’t survive Covid—that’s part of it. That taught me not to let time go by because before I know it, that time won’t be there anymore,” she said.’
Instead, many over-saved for a future that might not arrive due to disease, economic changes, global issues, and more – and declines in personal health that make travel challenging or even impossible.
On the plus side, we now have a pool of people in an economy nearing a recession that have money to spend on services and products. And this may help the U.S. avoid a recession.
- NBER research paper finds college educated workers should postpone saving for retirement until they are older – Coldstreams
- Possibly: “Are you saving more than you need for retirement?” – Coldstreams
