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Old 02-21-2007, 10:19 AM
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disneysteve disneysteve is offline
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Default Re: Saving too much?

Quote:
Originally Posted by jIM_Ohio
if a person lived until age 65, at least 33-50% of people this age will live into their 90's. Any calculator needs to account for a person living into their 90's.

Granted ages 80-95 won't have much "consumption", other than groceries and gifts... people this age would not be as active as a retiree aged 65-80.
You're right about life expectancies being longer.

As for consumption rate, it does tend to decrease with age, but not as much as it used to. I know plenty of people in their 70's and 80's who still travel regularly. Have you been on a cruise lately? Lots of older people, including folks with walkers and wheelchairs. The elderly who are able and can afford to go are going and enjoying themselves. More and more travel companies are gearing trips to this demographic since it is growing rapidly.

Also, other areas of consumption tend to increase, like medical care, prescriptions, home health aides, senior daycare programs, etc. Those things can get quite expensive and more than make up for what isn't being spent on consumer purchases.
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