long-term impacts on retirees

How Expenses Change After Retirement?

February 27, 2014

One of the fundamental aspects of retirement planning is estimating how expenses change after someone retires. Since every individual is unique, and their spending patterns are different from  one another, financial planners have very little consensus regarding spending behaviors of people who are about to retire.

retirement-yachtAccording to some financial advisors, expenses during retirement actually increase because their health care expenses rise due to their age. On the other hand, some financial advisors assume that the expenses during retirement decreases because retired people cut their spending related to lifestyle changes, such as travel and entertainment. However, there is a third group of financial advisors who think that spending during retirement years remain the same and only rise with adjusted inflation levels. (more…)