Octogenarians Rule the Rich

According to the Bloomberg Billionaires Index, nearly 25% of the 25 richest people in America are over the age of 80. Newly released data from the IRS indicates that people over 80, who make up only 3.7% of the population, control a greater portion of the top fortunes in the nation relative to those under 50. The general principle that older individuals tend to have more wealth is unsurprising; amassing wealth and shedding debt can take many decades. It is the tremendous imbalance of wealth accumulation in these older Americans that is so unexpected.

This trend brings up questions as to how so many older Americans are prospering well into their 70s, 80s, and even their 90s. Advances in medical technology, innovation, and access to better care may supply part of the explanation. Prior to the 1980s, the wealthiest Americans died at rates similar to the general population. This is no longer the case. The wealthiest 1% of men from ages 65 to 79, are 12% less likely to die than the average American male at any point along this age range. The most affluent men in this age range had mortality rates that were 40% below the average. This comes at a time when Americans’ life expectancies have ceased increasing and middle-class incomes are stagnating. Whatever the cause or proposed solution, there are still some very nice benefits to being rich.

See Ben Steverman, Octogenarians Rule the Rich, Bloomberg, August 23, 2017.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.

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