The headline was alarming, and sensationalism sells.
Half of retirees die with little in savings- MSN Money
But:
"That doesn't mean their standard of living is very low -- they might have a relatively generous pension plan, most of them will have Social Security," said James Poterba, professor of economics at the Massachusetts Institute of Technology, president of the National Bureau of Economic Research, and a co-author of the study.
When net worth is measured -- including savings, home equity, the value of Social Security and pension benefits, and more -- retirees' financial picture around the time of death looks less bleak. Single people had average assets of about $142,000, those whose spouse had died previously had average assets of $253,000, and couples where the surveyed retiree had died but the other spouse was still living had average assets of $692,000, according to the study.
"You can't generalize that the elderly are not doing very well financially or that the elderly are doing fine. There is a lot of variation within the group," Poterba said. "There is a clear group of households that have relatively low income and also have low financial assets. At the other end is a group that has financial assets that are more than sufficient to accommodate any shocks."
Half of retirees die with little in savings- MSN Money
But:
"That doesn't mean their standard of living is very low -- they might have a relatively generous pension plan, most of them will have Social Security," said James Poterba, professor of economics at the Massachusetts Institute of Technology, president of the National Bureau of Economic Research, and a co-author of the study.
When net worth is measured -- including savings, home equity, the value of Social Security and pension benefits, and more -- retirees' financial picture around the time of death looks less bleak. Single people had average assets of about $142,000, those whose spouse had died previously had average assets of $253,000, and couples where the surveyed retiree had died but the other spouse was still living had average assets of $692,000, according to the study.
"You can't generalize that the elderly are not doing very well financially or that the elderly are doing fine. There is a lot of variation within the group," Poterba said. "There is a clear group of households that have relatively low income and also have low financial assets. At the other end is a group that has financial assets that are more than sufficient to accommodate any shocks."