What aspects are important when planning for retirement spending fluctuations?

Preparing for spending increases could improve likelihood for success in retirement.

September 2023, From the Field

 

Key Insights

  • Data show that spending generally decreases in retirement, but many retirees could also experience varying spending increases.
  • Essential (nondiscretionary) expenses—housing in particular—are the primary sources of spending variability in retirement, but this tends to vary with income.
  • Maintaining sufficient liquid assets, while continuing to invest for growth, could help retirees adjust to spending fluctuations and bolster retirement outcomes.

 

Written by

Sudipto Banerjee, Ph.D. Vice President, Retirement Thought Leadership

 

 

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