Weekend Reading: Will Your Spending Decline in Retirement?

This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
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Weekend Reading

If one of your major financial concerns relates to spending changes in retirement, you will find encouraging news here; on average, retirees spend less as years pass.


A dramatic dip: According to a 2015 UK-based study, spending on non-discretionary items falls considerably as retirees age (most notably around age 65), regardless of their income. This is mainly due to spending more time at home, but can also include other reasons such as:

📌 Spending less time engaging in social activities

📌 No longer having a work commute

📌 Losing a partner

📌 No longer prioritizing home maintenance costs

Other factors: As you grow older, you might also conserve income in anticipation for covering long-term care or other health-related expenses later in life – or, because you wish to leave an inheritance to loved ones.

Climbing financial confidence: What is most interesting, however, is the fact that as retirees aged in this particular study, the majority felt more secure about their finances, not less. By utilizing sustainable withdrawal rate strategies, this might mean you could retire earlier than expected or that retirement income planning in general can feel slightly less daunting.

Proactive planning pays off: Have you been accounting for your retirement spending changes in conjunction with inflation? If not, it may be time to drill down further, as it could truly be the key to reaching “Job Optional” status.