The Most Important Retirement Paper You Will Read (Part 1)

Everything you have heard about retirement planning is WRONG!   This white paper from United Income, using data from CDC, BLS, University of Michigan, and many other areas, is a must read.  Retirees are living longer, are healthier and wealthier than ever before.  But here's the critical thing is that retirees on average spend 2% less each year in retirement than the year before.   From the article: The average retiree cuts their spending by about 2 percent every year throughout their retirement. The biggest drop over time is spending on lifestyle expenses, like travel, apparel and entertainment; but, essential spending on transportation and housing falls too, as retirees pay off their mortgages and rely more on friends and family for getting around town as they age. Healthcare is one of the only expenses that tends to increase through retirement, although it tends to increase incrementally for nearly all retirees.  Now, what are we typically told? We aren't' saving enough. Why?  Because we use retirement projections that assume spending is going to increase each and every year in retirement.  Yet, the numbers are becoming more and more clear that retirees actually REDUCE their spending! If you are spending less each year than you were told, how would that change your current retirement planning? Maybe you wouldn't worry so much.  Now, here's the problem.  As people live longer in retirement, they are watching more and more TV.  This is leading them to be more pessimistic about their current situation and the world they live in.  TV, and news in general, is focused on sensationalism.  "If it bleeds, it leads".   This is not good.  Cut the cord. Turn off the stupid box. And enjoy your health and wealth in retirement.  https://www.foxbusiness.com/features/living-longer-healthier-and-wealthier-lives