A More Flexible Way to Think About Retirement
Many retirement plans are built on a quiet assumption: that spending stays roughly the same from year one to year thirty.
It sounds reasonable. But research suggests it's not how retirement actually works — and planning around that assumption might create more anxiety than it prevents.
The Retirement Fear That Can Hold People Back
Running out of money consistently ranks as one of the top retirement fears in national surveys.¹ That fear is understandable. But it can also lead to a pattern that's harder to spot: retirees (or those approaching retirement) holding back on spending even when their plan might support it.
Not because the math doesn't work. Because the what-ifs feel too heavy.
“What if I spend too much now and regret it at 80?”
“What if I'm not being conservative enough?”
The result is often a retirement that feels more cautious than it needs to be — especially in the early years when health and energy are on your side.
What the Data on Retirement Spending Shows
When researchers study real retiree spending, they don't see a flat line. They see a curve.²
Spending tends to be highest in the early years of retirement. Households in their 60s spend an average of roughly $72,300 per year — about $12,000 more than those in their late 70s.³
That's not recklessness.
It's travel, home projects, hobbies, and experiences that people prioritized once they finally had the time.
By the late 60s and into the 70s, spending typically eases by around 10%, driven mostly by reduced discretionary costs rather than essentials.⁴ Routines simplify. Priorities shift. Life finds a different rhythm.
Then, in the 80s and beyond, overall spending often drops further — even as healthcare costs take a larger share of the budget. When advanced care enters the picture, expenses can concentrate quickly. The median cost of a private nursing home room runs roughly $10,646 per month.⁵
The takeaway isn't that later years are cheap. It's that retirement spending naturally evolves, and the early years tend to be the most active and most expensive by choice, not by accident.
Why a Flat Retirement Plan Can Create False Pressure
If you assume every year of retirement costs the same, the math can feel punishing. Thirty years of identical withdrawals is a big number, and it can make early spending feel irresponsible.
But if spending patterns tend to shift (higher early, lower in the middle, then reallocated toward care later) that changes the calculus. Not dramatically. But meaningfully.
It suggests that thoughtful spending in your 60s, when you may be healthier and energized, doesn't automatically mean shortchanging your 80s. The two phases often have different cost profiles and different priorities.
That's not permission to ignore planning. It's an invitation to plan with more nuance.
A More Thoughtful Retirement Question
Instead of asking "Am I spending too much?" it may be worth asking something different:
"Does my plan account for how retirement actually changes over time?"
If it doesn't, you might be solving for a version of retirement that doesn't match reality.
These are the kinds of questions worth exploring with a professional you trust. Not to find a perfect answer, but to make sure your plan reflects how your life may actually unfold.
Sources:
- AARP, 2024 [URL: https://www.aarp.org/press/releases/2024-4-24-new-aarp-survey-1-in-5-americans-ages-50-have-no-retirement-savings/]
- Morningstar, 2025 [URL: https://www.morningstar.com/content/cs-assets/v3/assets/blt9415ea4cc4157833/bltb73b87c5d0c70ead/692f43f57737a31596684522/working_file_11.19_FINAL_REVISE.pdf#page=11]
- J.P. Morgan, 2025 [URL: https://am.jpmorgan.com/content/dam/jpm-am-aem/americas/us/en/insights/retirement-insights/retirement-by-the-numbers.pdf]
- Bank of America, 2025 [URL: https://institute.bankofamerica.com/content/dam/economic-insights/evolution-of-retiree-spending.pdf]
- Genworth, 2025 [URL: https://www.nasdaq.com/press-release/genworth-and-carescout-release-cost-care-survey-results-2024-2025-03-04]
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