3 retirement spending patterns financial advisors see in every couple that runs out of money too early - Silicon Canals

"After diving deep into retirement planning research and talking to financial advisors, I've discovered that couples who run out of money too early share remarkably similar spending patterns. These aren't necessarily people who were reckless or uninformed. Often, they're smart folks who fell into predictable traps that derailed their retirement security. The patterns are so consistent that advisors can spot them from miles away. And understanding them might just save your retirement."

"Here's where it gets tricky. Most retirement calculators assume your spending will stay relatively flat or even decrease over time. But when you frontload your retirement with big expenses, you're not just spending today's money. You're spending decades of potential investment growth. Think about it this way: every $10,000 you overspend in year one of retirement could have grown to $21,000 by year ten if left invested. Multiply that by several splurges, and suddenly you're looking at a six-figure mistake."

Retirement spending often follows a 'spending smile': high spending in early retirement, reduced spending in middle years, and rising healthcare costs late in life. Many retirees treat the first five years like an extended vacation and frontload large expenses, which sacrifices decades of compound investment growth. Standard retirement calculators commonly assume flat or declining spending, underestimating the impact of early overspending. Every overspent dollar in early years reduces future wealth potential, increasing the chance of depleting savings. Retirement length is uncertain, so planning must account for variable longevity and the escalating cost of healthcare to preserve financial security.

Read at Silicon Canals