This is the No. 1 Reason for Overspending Among Older Households
Overspending is a common problem for seniors. In fact, a recent study from the Employee Benefit Research Institute found that while average spending among single retired individuals was $5,000 below household income, median spending exceeded median income by $3,000.
Unfortunately, seniors generally aren't overspending on extravagant trips or spoiling grandkids. Instead, when they spend more than their income, it's often because of a medical issue.
As EBRI found, 85% of all seniors who spent at least 20% of their income on medical expenses experienced a budget deficit, compared with just 20% who spent 5% or less on care.
Source Fool.com
