Why aren't retirees spending their savings?

Retirees are not spending their savings anywhere nearly as quickly as academics think they should. That is the conclusion of a study published earlier this month by the Employee Benefit Research Institute (EBRI). The study compared the current assets of retirees with the assets they had at the time of retirement 17 to 18 years ago. Retirees in the study were divided into three groups based on their non-housing assets at retirement. The most affluent group had retired with over $500,000. Eighteen years later, their median level of savings had dropped a mere 11.4 per cent. In other words, they still had nearly 90 per cent of the money they started out with.

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Article by Fred Vettese, partner and actuary with Morneau Shepell.