3 ms·
Why would you normalize for age?
by themitigating 4y ago
Why would you normalize for age?
- BlargMcLarg 4y agoBecause that wealth isn't useful to individuals who are far away from accessing it, and that access / wealth can still change as they approach the age of access. Additionally, the idea of "start low end high" is being questioned by many individuals who would rather have a more flat curve while starting higher initially. GP even mentioned the reason in their post.
- ChrisLomont 4y agoBecause old people tend to have more wealth since they had a lifetime to accumulate. This places with older people tend to be richer, but that does not necessarily translate to what happens to an average person in a society. For example, in the US the median network for an 69 year old (right around retirement) is over 33 times as much as an 18 year old [1], with values in between spread as expected. So a society with significantly more old people (such as Japan) would have higher median wealth but not necessarily more income (for example, US pays more than Japan on average [2], but we're younger). So, if you move to Japan from the US assuming you'll end up richer, you may be making a mistake because you made that choice based on comparing things incorrectly. This is why it matters. [1] https://dqydj.com/net-worth-by-age-calculator-united-states/ https://dqydj.com/net-worth-by-age-calculator-united-states/ [2] https://countryeconomy.com/countries/compare/japan/usa?sc=XEAA https://countryeconomy.com/countries/compare/japan/usa?sc=XE...