It’s not just Gen Z who can’t afford the cost of living right now. Even wealthy boomers who have retired with at least six figures in savings are feeling the pinch.
That’s according to a study from Prudential Financial. The Fortune 500 investment, money management, and retirement planning firm surveyed around 20,000 people over the age of 50 and found retirees are living well below their means.
Married 65-year-olds with at least $100,000 in financial assets withdrew an average of 2.1% of their savings annually—that is, nearly half the usual spending rate of retirees, according to the research.
David Blanchett, head of retirement research at PGIM DC Solutions, an affiliate of Prudential Financial and coauthor of the study, told the Wall Street Journal that since 1926, retirees have been able to spend 4% of their savings per annum without risking running out of money in the last 30 years of their lives.
But now, the prospect of living to upwards of 95 years old is becoming an increasingly likely reality for older people—and you can bet the cost of housing, health care, bills, and food is going to go up in that time.
