The Retirement Spending Smile

You think you’ll spend like this…

But instead, you spend like this…

Retirement experts who’ve studied this say that we spend in three phases…

  • the go-go years,
  • the slow-go years,
  • and the no-go-years.

The go-go years are your first set of years in retirement. You play, you travel, you spend.

Then you start to slow down. Your spending naturally declines.

And then you really slow down. But your spending rises as you start to spend more on healthcare.

So, if you planned to spend like you thought you’ll spend, you should allow yourself to spend more.

Because the money you don’t spend in the early years compounds and it can compound for decades into an enormous sum. Not the worst of things but then you can’t take it with you.

But then who likes the word retirement? Financial independence sounds better – independence to do the best work of your life while you keep yourself engaged, active and relevant.

I mean don’t quit working but quit the work that looks like work. And then mix in those interim all-deserving breaks. Travel, explore and continue discovering.

Thank you for your time.

Cover image credit – Kat Smith, Pexels