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Retirement Saving

Patterns of Dissaving in Retirement

Research Report

August 2000


An AARP Public Policy Institute Issue Paper examining patterns of dissaving or asset decumulation during retirement -- how, why, when, and at what rate retired individuals and/or households consume resources and spend their financial assets.

Using the Social Security Administration's New Beneficiary Data Survey (NBDS) and Asset and Health Dynamics Among the Oldest Old (AHEAD), sponsored by the Administration on Aging, Steven Haider, Michael Hurd, Elaine Reardon, and Stephanie Williamson of RAND find that, far from being mechanically and somewhat passively spent down, the wealth of older persons appears to be actively managed after retirement.

The study also found:

  • an overall increase in wealth among households with people above age 70,
  • little change in wealth among households with people in their 60s, and
  • increasing wealth inequality with considerable heterogeneity in saving patterns across households in both groupings. (83 pages)

Pub ID: 2000-10