I am newly retired as of start of 2022. Run all the calculators and traps and feel good about my plan and all the available levers I can pull if required. Assuming like many, when I mapped out my plan at end of 2021, I made certain assumptions on the annual growth of my spend using an arbitrary inflation index of 3%/yr. In my case, DW and I are both 58 with no pensions, so we rely on our assets to fund RE. We do have a relatively high planned annual spend that is very discretionary. As it stands right now YTD, I am tracking to be about 10 -15% below our planned spend. While clearly inflation has had an affect (i.e. groceries), our "personal inflation" has not stressed our spend. While we could do more gifting, make more home improvements, or buy more stuff to fill to hit our number before year end, it seems silly to do it "just cause". So now, as I look forward to 2023, I plan to hold our spend plans "as is" as opposed to adding the a 3% bump.
Old-timers... how has your annual spend changed relative to inflation and/or personal inflation? I realize the more fat you have in your budget, the less pain you may feel, but are you spending that much more than you did say 3, 5, 10+ yrs ago?
Old-timers... how has your annual spend changed relative to inflation and/or personal inflation? I realize the more fat you have in your budget, the less pain you may feel, but are you spending that much more than you did say 3, 5, 10+ yrs ago?