Retirement is financially scarier than the act of retiring itself.
Your income benchmark before retirement may not be relevant after retiring.
Expenses such as mortgage payments, children's expenses, and payroll taxes decrease or disappear in retirement.
Discretionary spending becomes more controllable in retirement.
Health care costs may increase, but they are spread out over the entire retirement period.
Why is retirement financially scarier than the act of retiring itself?
—The financial aspect of retirement is often overwhelming, and people feel uncertain about their future income and expenses.
Is your income benchmark before retirement relevant after retiring?
—No, your income needs may change in retirement, and your previous income benchmark may not be applicable.
Do expenses decrease or disappear in retirement?
—Yes, expenses such as mortgage payments, children's expenses, and payroll taxes usually decrease or disappear in retirement.
Can discretionary spending be controlled in retirement?
—Yes, discretionary spending becomes more controllable in retirement, as you have more flexibility in choosing how to spend your money.
Do health care costs increase in retirement?
—Health care costs may increase in retirement, but they are spread out over the entire retirement period.
00:00Retirement is financially scarier than the act of retiring itself.
06:50Your income benchmark before retirement may not be relevant after retiring.
12:30Expenses such as mortgage payments, children's expenses, and payroll taxes decrease or disappear in retirement.
18:15Discretionary spending becomes more controllable in retirement.
24:40Health care costs may increase, but they are spread out over the entire retirement period.
