Wealth

Normally when people reach retirement age of around 65 they convert their assets into more secure investments meaning they move from stocks to money markets or cash. This in turn removes capital for investment purposes and causes a rise in capital cost. The US is somewhat different because the top one percent own 40% of all assets so they often do not transfer all of the assets into safe places. This leaves more money for investment. This is one of the few upsides to the wealth gap.