Retirees are thinking differently about retirement spending. Are you?

Spending through retirement does rise, but slowly

• Spending in retirement does increase over the years, but more slowly than we've assumed.
   
• Instead of rising each year to match the rate of inflation, retiree spending increases about two percentage points less than the conventional assumption.
   
• That means people who have been retired for a number of years are spending much less than what we generally assume. 

What drives Savers to preserve assets instead of spend?

• Rational goals: Savers might have a specific future goal in mind, like covering late-in-life medical expenses or leaving money to children.
   
• Psychological goals: Some may derive satisfaction from the balance itself or use the balance as a way to assess how they're doing.
   
• Behavioral goals: Many Savers are used to spending less than they could throughout their lives and continue that behavior in retirement.