By Bob Niedt of Kiplinger
We spend a lot of time worrying about running out of cash in retirement. But you might be surprised to see some of the things you’ll find yourself spending less on in your golden years.
A popular retirement guideline suggests retirees need 80% of their preretirement income to make ends meet, and some experts encourage saving even more to avoid running out of money. Facing such daunting goals, 53% of preretirees say they plan on working past age 65 to ensure that they have enough money, according to the Transamerica Center for Retirement Studies.
But the 80% rule isn’t for everybody, and it may lead to inflated savings goals that cause undue anxiety as you plan for retirement. Consumer spending actually decreases — significantly — as you age. Data from the Bureau of Labor Statistics shows the average retired household spends 25% less than the average working household.
In order to know how much you need to save for retirement, it’s important to know what your spending will look like once you actually retire. Here’s a little pep talk: You’ve actually been practicing for retirement for the last year if you’ve been locked down this entire time.
Now, consider these 10 budget line items on which you’ll likely spend less in retirement…. Read More