Contrary to conventional wisdom, retirees get wealthier

We Americans are scolded so often about not saving enough for retirement (usually by financial services companies with an obvious stake in the matter) that it’s always a treat when some positive news comes along.

Such is the case with this recent academic paper. It says that retirees, especially those in the middle- and upper-income groups, generally manage their finances wisely enough during retirement that their wealth actually tends to rise rather than fall. This being an academic study, it’s more complicated than the foregoing one-sentence explanation, but that’s the bottom line.

The study reinforces something we found when we surveyed several thousand retired readers for an article in the February Consumer Reports. The huge majority of our retirees, it turned out, were quite satisfied with their situation.

This isn’t to say that you should stop investing for retirement or party like there’s no tomorrow once you do retire. However, if you save conscientiously now and spend smartly later, you may not only enjoy retirement but have the added pleasure of proving the financial fearmongers wrong.

Do you have a retirement-related experience to share or a question to kick around with other readers? Join the discussion at our online retirement forum.—Greg Daugherty

Greg writes the “Retirement Guy” column each month for the Consumer Reports Money Adviser newsletter.