Why might someone in old age be more likely to save rather than borrow?

Individuals in old age might be more likely to save rather than borrow primarily because they are likely to have existing savings. As people approach retirement, many have been saving throughout their working lives to ensure financial stability during their later years. This accumulation of savings means they can rely on their personal funds rather than incurring debt, which can be a crucial consideration when managing finances in retirement.

Additionally, older individuals may become more risk-averse as they age. With potential uncertainties related to healthcare costs and other living expenses, having a financial cushion is often prioritized. The reliance on existing savings allows them to avoid the financial strain and obligations that come with borrowing, contributing to a preference for using their own resources.

This behavior is reinforced by the desire for financial security during retirement, where the focus might shift from income generation to maintaining their standard of living without additional debt burdens.