Spending in Retirement Isn’t Linear — and That’s Normal
One of the most common assumptions about retirement is that spending should be steady and predictable — the same amount, year after year.
In reality, that’s rarely how retirement works.
For most people, spending in retirement rises and falls over time, and that variation is not a problem to be solved — it’s something to be planned for.
Understanding this can remove a great deal of unnecessary worry.
Retirement Spending Comes in Phases
Rather than a straight line, retirement spending often follows a series of phases.
The early years
These are typically the most active and, often, the most expensive:
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Travel and holidays
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Home improvements
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New hobbies or experiences
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Helping children or grandchildren
Spending is usually higher — and intentionally so.
The middle years
Life often becomes more settled:
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Fewer big trips
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More routine living costs
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A clearer sense of “normal” spending
This is where many retirees find their financial rhythm.
The later years
Spending often reduces naturally:
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Less travel
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Lower discretionary costs
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Simpler day-to-day routines
(Although healthcare or care costs may increase for some, which is why planning ahead matters.)
Why This Matters for Financial Planning
Many people worry that spending more early in retirement is somehow irresponsible.
In fact, for those with a well-structured plan, using money earlier — when health and energy allow — is often entirely sensible.
The key is not spending the same amount every year, but understanding:
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Which years are likely to cost more
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Where flexibility exists
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How income sources work together over time
A good plan allows for variation rather than forcing artificial limits.
The Risk of Over-Caution
Interestingly, one of the most common risks we see in retirement isn’t overspending — it’s underspending.
Some retirees:
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Delay experiences they can afford
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Worry excessively about market movements
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Hold back “just in case”
While prudence is sensible, excessive caution can mean missing out on the very years retirement was meant to be enjoyed.
Confidence comes from knowing your spending fits within a longer-term framework, not from restricting yourself unnecessarily.
Flexibility Is the Real Safety Net
What provides security in retirement isn’t a rigid budget — it’s flexibility.
That might include:
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Variable spending rather than fixed withdrawals
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Multiple income sources
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The ability to adjust plans as life changes
This flexibility allows retirees to spend more in some years and less in others, without putting long-term security at risk.
A More Realistic Way to Think About Retirement Spending
Rather than asking:
“Can we afford to spend this much every year?”
A more useful question is:
“Does this pattern of spending make sense across our retirement?”
When spending is viewed as a journey rather than a straight line, retirement planning becomes far more realistic — and far less stressful.
Final Thought
If your retirement spending doesn’t look neat or predictable, that’s normal.
What matters isn’t consistency year by year, but sustainability over time — and having a plan that adapts as life does.
Retirement is lived in chapters, not spreadsheets.
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MD & Certified Financial Planner
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