Throughout clients’ lives, you expect their priorities to shift. Medical concerns and costs typically become more important as people age, for instance, while travel expenses generally drop.
That’s exactly what the U.S.-based Employee Benefits Research Institute found through a recent study.
Read: Most Canadians can’t retire as planned
The institute surveyed four age groups: those aged 50 to 64, 65 to 74 and 75 to 85, and those over the age of 85. And each was polled about how much of their annual incomes went to covering the costs of housing, food, clothing, entertainment, gifts, transportation and health care.
Not surprisingly, health care costs went from 8% of income for Baby Boomers to 19% of income for those older than 85-years-old. Meanwhile, transportation costs fell from 16% of income to 7% over the same period–it’s important to note the cost breakdowns of retirees may differ in Canada due to our access to government-funded health care.
Read: Most fear falling short of retirement savings goals
Still, housing costs remained the top priority for every group surveyed. These expenses ate up almost half (47%) of people’s incomes between the ages of 50 and 64, and still accounted for 42% of spending between the ages of 75 and 84.
For more, click here.
Also read:
How to preserve clients’ nest eggs
What does it cost seniors to downsize?