When people go into retirement their spending patterns will change in ways they might not expect. Many people think that their housing expenses will fall once they have the mortgage payed off, but they will still need to factor in expenses like upkeep and taxes. There will be a drop in transportation expenses for people’s commute to work, but they might end up spending more on taking vacations in the begging years of their retirement. Medical expenses will continue to grow as people age, but they might not grow as fast as would typically be expected. Overall there will likely be a reduction in the number of expenses, but people still need to take steps to plan ahead for their retirement. It is a good idea to meet with an experienced estate planning professional to come up with a personal retirement plan.
See Brian Stoffel, Here’s How the Average American’s Spending Changes in Retirement, My San Antonio, April 11, 2016.
