Spending Drops in Retirement, but Satisfaction Doesn't: Blanchett

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In new research, retirement researcher and previous podcast guest David Blanchett challenges the long-held belief that financial well-being in retirement is tied to maintaining the same spending levels from your working years. His surprising finding: retirees often experience greater financial satisfaction over time—even as their spending declines.

In simple terms, David found that we often need less to feel just as—if not more—fulfilled. Many retirees naturally reduce spending in their later years, not out of hardship, but because they’re no longer driven by the same wants or needs. Overall, spending drops about 20% entering retirement, but only 7% of households report a decline in well-being.

Key Takeaway: A fulfilling retirement isn’t about matching past spending—it’s about redefining satisfaction on your terms. More time, fewer obligations, and a purposeful plan can often matter far more than dollars spent.