Nation & World

1 in 6 U.S. retirees is a millionaire

Average wealth have doubled since 1989, report finds

Tribune News Service

Retiree Bill Tucker, 81, works on a woven cane chair bottom in Charlotte, N.C. A new report shows retirees are healthier and wealthier than even, but they also may be unnecessarily frugal and are watching 78 percent more television than retirees in 1975.
Tribune News Service Retiree Bill Tucker, 81, works on a woven cane chair bottom in Charlotte, N.C. A new report shows retirees are healthier and wealthier than even, but they also may be unnecessarily frugal and are watching 78 percent more television than retirees in 1975.

American retirees are healthier and wealthier than ever. But wiser? A new report throws a little doubt on that notion.

Money manager United Income analyzed data from a number of sources — including the Federal Reserve Board, the U.S. Bureau of Labor Statistics, the Census Bureau, the Internal Revenue Service and the Centers for Disease Control and Prevention — to examine the changing the lives of American retirees.

One of every six retirees in the United States is a millionaire (if you include the value of their homes), according to the new report.

Their average wealth has risen more than 100 percent since 1989, to $752,000, and the share of those who are millionaires has doubled.

More retirees — 62 percent — are enjoying life without physical or cognitive limitations, according to the data.

That number is up from 49 percent in 1963, the first year such data was taken.

Not all the findings were positive, however.

“The largest change in activity is a near doubling of the amount of time retirees watch TV over the past 40 years,” the report noted. (The latest data is for 2012.)

The average retired 60-year-old now watches television almost three hours every day. The increases were largest in high-income, highly educated households, which experienced a 78 percent rise in couch time since 1975, vs. 43 percent for lower-income households.

Retirees may not be learning much from their viewing habits, the report suggests.

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It cited 2016 Pew Research Center data showing that more than 55 percent of households older than age 65 watch cable news programs, and it noted that “one multicountry study found that public broadcast news (such as PBS) increased political knowledge, while cable news actually reduced knowledge that people have about actual events.”

Income inequality has remained about the same among retirees since 1989.

A rising stock market led to a 42 percent rise in wealth inequality among older Americans.

“People have held incomes and spending constant over time,” said Matt Fellowes, United Income’s founder and chief executive officer. “The wealthiest retirees are wealthier but are not spending more, relative to previous generations.”

Fellowes believes many Americans are being unnecessarily frugal in their spending and are leading “overly contained” lives as a result.

“What’s discouraging,” he said, “is that those who are not saving or investing are just getting left progressively farther and farther behind as each successive generation enters retirement.”

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