Retirees may be overly pessimistic about their future financial health and that may lead them to spend less than they could otherwise, according to a new study by United Income, a startup that aims to apply big-data analysis to financial planning.
The average adult 60 years or older will trim their spending by about 2.5 percent every year, or by about 20 percent over a 10-year period, according to United Income's analysis.
Meanwhile, retirees leave behind a similar amount of wealth regardless of what age they die. For example, the average retired adult who dies in their 60s leaves behind $296,000 in net wealth, $313,000 in their 70s, $315,000 in their 80s, and $238,000 in their 90s, researchers found.
The bottom line: "Retirees are not enjoying their retirement as much as they could," said Matt Fellowes, founder and CEO of United Income and former chief innovation officer at investment research company Morningstar.
United Income analyzed two sets of data for its study: The University of Michigan Health and Retirement Study based on interviews of roughly 20,000 people for more than 20 years and the University of Michigan's monthly survey of consumer sentiment.