Thinking You’ll Spend Less in Retirement
Without expenses that revolve around your work- commute, lunch, daily coffee run, work clothes, etc… you might think that you’ll spend way less during retirement. While this may be true for some people, the answer’s not the same across the board.
Some retirees may find themselves spending even more, particularly due to health expenses. But it doesn’t end there. With all the time you have on your hands, now you’re probably thinking of spending it however you want, especially on your hobbies.
But even hobbies don’t come cheap- in fact, some of them could make a huge dent in your savings.
So just assuming that you’ll spend less is dangerous, which is why you need to look at your current expenses and try and estimate how much spending money you’ll need once you retire. Do so before you actually leave work, otherwise you’ll be met with a nast financial surprise.
