Nothing beats a good old-fashioned budget when it comes to saving money in retirement. Once you retire, your budget and the way you spend money should be re-accessed. Your income flow has changed, so your budget must, too. It’s easy for retirees to think that their spending will decrease in retirement and a budget isn’t really necessary. However, research has shown otherwise. According to the Employee Benefit Research Institute, nearly 50% of households spent more in the first two years of retirement than they had before retirement. By the sixth year of retirement, 33% of households were still spending more. This trend was not specific to high income households either. It was distributed across all income levels. This means crunching the numbers, deciding how much you can afford to spend, creating a budget, and (most importantly) sticking to it. This is vital in making your nest egg last.
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