...These trends reinforce an interesting trend reported in our previous research that high-wealth retired households live more frugally than they need to. However, the depth of this frugality may have actually increased over time, as the relative wealth of rich retirees has increased while their incomes have not. The reasons for this trend are difficult to establish. Research has found that, as they age, people become progressively more pessimistic about future stock market and economic performance, which might lead to cash conservation. That trend is perhaps further reinforced by the finding in this paper that TV viewing increases as we age, and has increased as a share of the average retiree’s day over time.
Programming over time has become increasingly sensationalized, and cable news, especially, is prone to focus on isolated negative stories.
But there are perhaps other drivers of this trend as well, such as growing concerns about paying for lengthening lives or health care.
