In Retirement, Your Spending Could Fluctuate

April 24, 2019

In Retirement, Your Spending Could Fluctuate

Your retirement income strategy will almost certainly evolve. How much you spend will vary from year to year, and in some years, you will spend more on some things than others.

At the start of your retirement, you may spend more than you think. A recent J.P. Morgan Asset Management analysis of more than 5 million Chase accounts confirms this tendency. Good times, adventures, and costs related to your retirement transition can add up quickly, and you might find that you are spending as much or more than you did when you were working. So, this could call for an adjustment to your retirement income approach. One other thing to note: while your health care costs may rise as you age, the money you spend on travel, transportation, food, or housing may vary greatly from one year to the next and even decline with time. A meeting to assess your potential income needs for the year ahead is a good idea.¹