One of the biggest questions for people who are transitioning from full-time employment is ‘how does spending change in retirement?’. It is a difficult question to answer, but there is a lot of research out there, which points to some key takeaways.
- Retirees can expect to spend less on food and clothing
- You can expect to spend less on transportation in retirement
- Expect healthcare costs to increase
- Many retirees plan to spend more on gifting
- More favourable tax rules apply to retirees
- Expect your overall spending to remain broadly in line with current spending
I hope it helps.