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Will Your Spending Decline In Retirement?

Tuesday, November 26, 2013 - 8:17 AM
Amid all the scary warnings about retirement, there’s a comforting statistic: On average, retirees spend less as they get older. There’s less travel, less dining out, fewer expensive toys.

How do you know these were voluntary spending cuts, not belt-tightening due to shrinking assets? How many perfectly healthy people stop going on cruises or visiting national parks because they just can’t afford to?

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I'm spending less in retirement because:
1. I paid-off my home.
2. I'm receiving less income thanks to the QE and ZIRP of one Benjamin Bernanke. This results in:
3. Less travel, less dining out, less entertainment.
7
ShorebreakShorebreak2,686 posts since
Apr 6, 2010
Rep Points: 14,567
1. Tuesday, November 26, 2013 - 12:00 PM
SB,

Nicely put.

"“Households led by people ages 65-74 spent, on average, $40,685, about 12% less than those in the 55-64 age band,” writes Christine Benz, director of personal finance for Morningstar, the market-data firm. “Those age 75 and above demonstrated an even sharper drop-off in spending: Their average expenditures of $30,946 were 24% lower than those of the 65-74 cohort.”"

How do they do such apples-to-apples comparisons with different sets of people?  A lot of claims were not justified in this article; e.g., how do you know the wealthy people are spending less during retirement?

In my case, I will not conpromise my house (that we work hard to buy) and frequent dining; without those retirement life will become meaningless; i.e., a zero-gain endeavor.  One has to enjoy retirement after all the accumulation effort over the years.

I agree with SB on Less travel and less entertainment.  I hate travel to start with, and I dnn't give a d*** to most of the boring entertainments. 
3
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
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