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"For a variety of reasons, these figures understate actual living standards in retirement. Taxes tend to take a smaller bite in retirement. Also, many seniors have no payment obligations and own their homes mortgage-free. And retirees are likely to spend down their principal as well as the income from their savings as they get older."
Seniors have a lot of "imputed income' that tends to reduce their taxable income but not their standard of living. SS also reduces taxable income. Things are probably not as bad as the stats indicate.
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“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
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