How Retirees (Actually) Spend Money

One of the big "aha" moments for many families planning for their retirement is when they see how much they specifically are able to spend and withdraw from investments in retirement.

 

A big shock to many is that when you study the spending habits of retirees, you see that retirement spending is seldom flat or linear.

 

Instead, retirees often want to (and do) front-load spending and consume more in their first 10 years of retirement than in their next 10 years of retirement; and often times even spend more in the first 10 years than their last 10 years; despite the rising cost of healthcare late in retirement.

Today Rick Luchini and I dig into exactly what drives this type of spending pattern, and how we work with families to identify their best spending strategy in retirement.