If they are spending less it's through necessity not through choice. All of us want to retire with the freedom to be able to do what we want, when we want. I'm sure those who spend less when they are retired only do so because that's what their finances permit.
Retirement Income
- Thread starter Terry_w
- Start date
If they are spending less it's through necessity not through choice. All of us want to retire with the freedom to be able to do what we want, when we want. I'm sure those who spend less when they are retired only do so because that's what their finances permit.
I think it is perceived as neccessary when it often isnt. I know of one person who was pretty tight yet died with hundreds of thousands in the bank - acctually I know of a few like this.
Actually that is not entirely true, it is a choice for me...
Having financial security is very important to some people...
I am one of them, I prefer to have a lot left over with my money even if my cash flow allow me to spend a lot more.
When I have plenty of cash, not spending it make me feel happy and very secure, come GFC, crisis, market crash, asset down 50% .. no worries what else can I buy and where can I go holiday for cheap as no one else is travelling.
I don't mind die with million left as there is no need for me to spend it if I dont need to but on the flip side if something was to happen I got the cash for it..
Of course financial security is important, that's not at all what I'm saying. I simply said that the vast majority of people would prefer to have the ability to spend more in their retirement. We all have a dream of living an idylic life in our retirement where we travel and do all the things that we've been putting off for years.
We also bought some powder form too but from Costco instead, which worked out to be the same 20c per load. The wife thinks the tablets are "special" because they have that power ball 'n all, so who am I to argue when they are available at the same price
Here's another vote for not preferring any of that fluffy retirement brochure type of idylic nonsense eg. the cheesy "the only thing I want to be fixing in retirement is myself a drink" like drivel. You have likely been sold that ideal by the same clever marketers that are convincing you to stay on the hamster wheel to get there. You can unplug from the Matrix early and be just as happy, if not more, by achieving even more travel and to do items simply because your retirement phase is so much longer.
I do admit that it can be hard to switch off those frugality skills that got you there in the first place, especially when they become easier to do when you retire. I have actually had to come up with a 10 year major spending plan to offset these new found annual expense efficiencies. I don't want to be leaving the kids with too big an inheritance!
I certainly would like to have financial freedom in my retirement. If you call that being sold cheesy drivel them I have been well and truly sucked in.
The reason many people want so much financial freedom in retirement is because they think they deserve it for sacrificing such a great portion of their lives on the hamster wheel. If you spend much less time on that wheel, the need to be so financially free diminishes significantly because you have the time to create and enjoy your own freedoms that may not cost much money at all.
Think of it like the difference between holidaying briefly in a place or living there for a few months. The former will likely see you cramming in as many potentially expensive experiences and conveniences to get the best "value" from that short time, whereas with the latter you can trade time for more effective use of money to achieve the same, or a better, "value" outcome.
In my parents case I was probably wrong in saying more time equals less expenses. It's more like more time buys more for close to the same.
Their day to day living expenses have definitely significantly reduced, due to the time they can devote to savings.
Their entertainment/leisure/travel etc expenses have increased because they are doing more. But the price 'per piece' of leisure has reduced.
They're also doing more of the 'smell the roses' activities that are low cost. My mum is learning Chinese - and devoting a significant amount of time to it. My dad is doing a half ars*d attempt at improving his German (his mother was Austrian). These are low cost activities that bring them pleasure.
My mum is volunteering at the RSPCA which also brings her happiness. Although I keep joking that she's going to come home with a three legged greyhound, two deaf and mute kittens and a rat with one testicle. Dad says he will introduce them to the pool.
They don't want to 'sit around all day watching tv', but they definitely want to take thinks more slowly.
Perhaps your expectation of 'retirement' is based on you not being in your late sixties?
Hopefully mid-fifties but we'll see how that goes ;-).
As long as they are enjoying what they do, that's the main thing. Sounds like they're having a fantastic retirement.
Agree with what you're saying. Maybe my posts weren't clear
I was just commenting that most people would prefer to retire with the ability to spend money without worry. I'm not implying that people should work like a dog for 45 years and have no fun along the way in order to have an enjoyable retirement.