The Financial Problems of the Elderly: A Holistic Approach

28 Pages Posted: 13 Apr 2001 Last revised: 21 Oct 2010

See all articles by Victor R. Fuchs

Victor R. Fuchs

National Bureau of Economic Research (NBER)

Date Written: April 2001

Abstract

A holistic approach to the financial problems of the elderly focuses simultaneously on their expenditures that are self financed as well as those that are financed by transfers from the young (under age65). It also focuses simultaneously on paying for health care and paying for other goods and services. The income and health care expenditures not paid from personal income, provides a useful framework for empirical application of the holistic approach . In 1997, approximately 35 percent of the elderly's full income was devoted to health care; 65 percent to other goods and services. Approximately 56 percent of full income was provided by transfers from the young and 44 percent by the elderly themselves. The paper shows how these percentages might change under alternative assumptions about the growth of health care relative to other goods and services and the effect of these changes on the need for more saving and more work prior to retirement.

Suggested Citation

Fuchs, Victor R., The Financial Problems of the Elderly: A Holistic Approach (April 2001). NBER Working Paper No. w8236. Available at SSRN: https://ssrn.com/abstract=266755

Victor R. Fuchs (Contact Author)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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