JustCurious
Thinks s/he gets paid by the post
- Joined
- Sep 20, 2006
- Messages
- 1,396
I often read advice (including advice given on this board) that when you plan for retirement, you should make sure you have enough money to sustain a given amount of spending that continually adjusts for inflation over your lifetime. And if you retire at say 60, you should plan on living to 90 or 100, so you should plan on withdrawing an inflation adjusted income for 30 - 40 years.
However, is this really necessary? Is it realistic to expect that you will spend the same amount (adjusted for inflation) at the age of 85 or 90 as you do at the relatively young age of 60? Isn't it more realistic to expect that after the age of 80, you will decline in terms of vitality and mobility and energy, and your income needs will therefore be lower? I am also assuming that by the age of 75-80, with proper planning, there is no more debt to be repaid (ie no mortgage or other payments). Therefore, isn't it more realistic to plan for active inflation adjusted spending up to around age 75-80, and then plan for reduced spending after that? Stated differently, is it really necessary to plan for inflation adjustments past the age of 80?
However, is this really necessary? Is it realistic to expect that you will spend the same amount (adjusted for inflation) at the age of 85 or 90 as you do at the relatively young age of 60? Isn't it more realistic to expect that after the age of 80, you will decline in terms of vitality and mobility and energy, and your income needs will therefore be lower? I am also assuming that by the age of 75-80, with proper planning, there is no more debt to be repaid (ie no mortgage or other payments). Therefore, isn't it more realistic to plan for active inflation adjusted spending up to around age 75-80, and then plan for reduced spending after that? Stated differently, is it really necessary to plan for inflation adjustments past the age of 80?