Featured Research

from universities, journals, and other organizations

Older Workers Spend Less On Necessities And Health Care

Date:
October 21, 2009
Source:
University of Missouri-Columbia
Summary:
The number of workers age 65 and older is predicted to increase by more than 80 percent by 2016. In an ongoing study, researchers are examining the financial motivations of older working Americans. New results reveal that older workers spend less money on necessities, including housing and food, and health care than older non-workers.

More older Americans are choosing to continue to work or are returning to the labor force. The number of workers age 65 and older is predicted to increase by more than 80 percent by 2016. In an ongoing study, University of Missouri researchers are examining the financial motivations of older working Americans. New results reveal that older workers spend less money on necessities, including housing and food, and health care than older non-workers.

Related Articles


"The recent increase of older adults in the work force has raised some interesting questions that previous studies haven't answered -- are older people working to meet financial needs, and are workers spending differently than non-workers?" said Deanna Sharpe, associate professor of personal financial planning (PFP) in the MU College of Human Environmental Sciences. "In this study, we found that older workers aren't necessarily working because they have to, and their spending patterns are very different compared to those of non-workers."

Using data from the 2005 Consumer Expenditure Interview Survey, MU researchers compared the financial budgets and expenditures of people ages 55-74 in working and retired households. They found that older workers spent more on transportation, eating out, education and insurance, while non-workers spent more on health care, cash contributions, food and housing. Older workers also had lower out-of-pocket costs for health expenses.

"Older workers spend less on necessities, including food and housing, which implies they aren't working out of need," Sharpe said. "They also are spending less on health care, which may indicate that workers are somewhat healthier than non-workers."

Current downturns in the financial market could force older workers to remain in the labor market to finance retirement, Sharpe says. The researchers will continue to study the impact of the changing economy. Sharpe predicts that adults from the Baby Boom generation will face increased responsibility for their financial futures as employers shift from defined benefit to defined contribution plans.

The study, "Spending Patterns of Older Workers," won the AARP Public Policy Institute Financial Service and Older Consumer Best Paper Award at the 2009 Joint Conference of the American Council on Consumer Interests/American Agricultural Economic Association. Tansel Yilmazer, assistant professor in PFP, co-authored the study.


Story Source:

The above story is based on materials provided by University of Missouri-Columbia. Note: Materials may be edited for content and length.


Cite This Page:

University of Missouri-Columbia. "Older Workers Spend Less On Necessities And Health Care." ScienceDaily. ScienceDaily, 21 October 2009. <www.sciencedaily.com/releases/2009/10/091021100750.htm>.
University of Missouri-Columbia. (2009, October 21). Older Workers Spend Less On Necessities And Health Care. ScienceDaily. Retrieved October 25, 2014 from www.sciencedaily.com/releases/2009/10/091021100750.htm
University of Missouri-Columbia. "Older Workers Spend Less On Necessities And Health Care." ScienceDaily. www.sciencedaily.com/releases/2009/10/091021100750.htm (accessed October 25, 2014).

Share This



More Science & Society News

Saturday, October 25, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Ebola Protective Suits Being Made in China

Ebola Protective Suits Being Made in China

AFP (Oct. 24, 2014) A factory in China is busy making Ebola protective suits for healthcare workers and others fighting the spread of the virus. Duration: 00:38 Video provided by AFP
Powered by NewsLook.com
WHO: Millions of Ebola Vaccine Doses by 2015

WHO: Millions of Ebola Vaccine Doses by 2015

AP (Oct. 24, 2014) The World Health Organization said on Friday that millions of doses of two experimental Ebola vaccines could be ready for use in 2015 and five more experimental vaccines would start being tested in March. (Oct. 24) Video provided by AP
Powered by NewsLook.com
Microsoft Riding High On Strong Surface, Cloud Performance

Microsoft Riding High On Strong Surface, Cloud Performance

Newsy (Oct. 24, 2014) Microsoft's Q3 earnings showed its tablets and cloud services are really hitting their stride. Video provided by Newsy
Powered by NewsLook.com
EU Gets Climate Deal, UK PM Gets Knock

EU Gets Climate Deal, UK PM Gets Knock

Reuters - Business Video Online (Oct. 24, 2014) EU leaders achieve a show of unity by striking a compromise deal on carbon emissions. But David Cameron's bid to push back EU budget contributions gets a slap in the face as the European Commission demands an extra 2bn euros. David Pollard reports. Video provided by Reuters
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Science & Society

Business & Industry

Education & Learning

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins