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pacpost : retirement   29

Have we been Downton Abbeyed?
"“The observation that many people die with significant savings, which is puzzling in the context of a simple life-cycle model, has been termed the ‘retirement saving puzzle.’ The picture changes dramatically if we consider the saving behavior of retirees who own homes, compared to those who do not…The difference is stark. Homeowners have flat or increasing profiles of net wealth over this period, while renters display a far faster rate of asset decumulation. This suggests that housing may play a major role in determining how retirees save or dissave.”"

"To summarize: homeowner retirees are richer than renters, and there are financial and emotional benefits to having a home, but that makes it hard for them to spend down their savings, and in fact they’re often stuck if they have a big unexpected expense. Get past the “OK, boomer” thing for a moment and there’s a bigger story."
realestate  retirement  rental  economics 
december 2019 by pacpost

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