"Advisers warn that retirees frequently spend too freely in their go-go years, when travel and leisure costs peak. The latest Consumer Expenditure Survey from the Bureau of Labor Statistics (BLS) found that average annual spending for adults ages 65 to 74 was $65,149, dropping nearly 20% by age 75. As a result, overspending early can strain savings meant to last decades, while excessive caution can lead to missing out on achievable goals."
"Scott Van Den Berg, president of Century Management, told Kiplinger that he advises new retirees to pause before making large financial moves such as gifting money, buying property or drawing heavily from investments. Give yourself six to 12 months to adjust before locking in big decisions, he said. Experts recommend maintaining 1218 months of cash or liquid reserves to avoid selling investments during downturns and to protect long-term assets like home equity."
Average annual spending for adults ages 65 to 74 is $65,149, dropping nearly 20% by age 75. Overspending early can strain savings meant to last decades, while excessive caution can cause missed achievable goals. New retirees should pause six to 12 months before making large financial moves such as gifting, buying property, or drawing heavily from investments. Maintain 12–18 months of cash or liquid reserves to avoid selling investments during downturns and to protect long-term assets like home equity. Homeowners can consider reverse mortgages or home-equity lines for flexibility. Craft a sustainable withdrawal plan that mimics a paycheck to manage taxes, spending, and market risks.
Read at www.housingwire.com
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