When do you picture yourself retiring? Wouldn’t it be nice if it was sooner than you think?
Don’t write off the idea. 🌟 It could be possible! 🌟 Many people actually do retire earlier than expected. This makes it crucial for you to start planning now.
I like to think about it in terms of this framework: Retirement Spending Smile.
This theory describes how our spending typically fluctuates throughout retirement … like a 😊.
In the early “go-go years”—spending tends to be higher as retirees travel and enjoy new experiences.
This is followed by the “slow-go years,” where expenses generally decrease as we stay closer to home.
But as we enter the “no-go years,” spending can spike again because of healthcare and housing costs.
💡Recent data from JP Morgan highlights that retirees with assets between $1 to $3 million spend more in their 50s, then gradually less in their 60s and 70s, before facing increased costs in their 80s due to potential health issues.
Understanding this spending pattern is vital for effective financial planning.
It allows you to anticipate higher expenses in the early years and adjust your savings strategies accordingly.
In other words, you might want to budget for travel and home renovations early in retirement.
Working with a financial planner can help you build in the flexibility to enjoy these experiences without the stress of overspending. Remember, retirement should be about enjoying life, not just managing finances!
Want to hear more about retiring comfortably in your 50’s? Check out my video on Everything You Need To Know 👇
#RetirementPlanning #FinancialLiteracy #RetirementSpending #FutureReady
