Maintenance of Preretirement Standards of Living After Retirement

摘要

The paper examines the relationship between preretirement and retirement standards of living, using consumption prior to retirement as a benchmark. The issue of defining a prior standard of living is addressed, and standard of living is defined in terms of utility flowing from an array of goods and services. The proportion of the preretirement income used for consumption is estimated, as are the changes in consumption expenditures resulting from retirement or aging. Sources and amounts of income available to persons aged 65 and over are addressed, with attention focused on OASI and Medicare. Additionally, inputed rent from homeownership, private pensions, and financial assets are addressed. Data indicate that many, if not most, persons are unable to maintain their preretirement living standards after they retire. Also, private resources are found to be insignificant sources of income for a majority of the retired population. For many of those aged 65 and over, the social security benefit is a major and perhaps the only, source of income.