More Dying Penniless

According to a new study by the employee Benefit Research Institute (EBRI), one in five of the oldest retirees is dying with no assets except a home, and almost a quarter of those 85 and older are dying with less than $10,000. 

More and more Americans are facing the terrifying fate of running out of money, and despite the “save more, work longer” mantras, health problems and age discrimination can make it impossible to work as long as you want.  Even substantial wealth is no guarantee you will not go through your fortune before you die.  The EBRI study shows people who are well off still risk dying poor, especially by the time they are 85.  It is difficult to avoid running out of money when you do not know how long you will live and it is easy to be wrong by more than a decade.  “Spend too much of your nest egg, and you might end up a destitute 93-year-old.  Spend too little and die young, and you missed the chance to enjoy your savings.”

See Bloomberg News, Dying Penniless: It’s Not Just the Poor, Financial Advisor, Apr. 29, 2015.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.