Keeping Spending In Check In Retirement

January 2nd, 2008  |  Published in Retirement  |  2 Comments

The latest Chairman’s Corner article at Vanguard.com is out and in it John J. Brennan, Chairman of Vanguard, warns that retirees have to be careful not to increase spending as they enter retirement. There’s a temptation, a reasonable and totally understandable temptation, to increase spending to “reward” yourself in retirement. Going on lavish vacations, buying all sorts of nice things, and any number of high expense things to “celebrate” your retirement certainly feels good but imperils your future livelihood.

This, coupled with the specter of inflation and longevity, are the three things retirees must be wary of. So, treat your retirement not as a goal, not as a finish line, but more like the start of a new stage in your life. Be prudent with your spending so you can keep spending for years to come.

  

Responses

  1. fathersez says:

    January 2nd, 2008 at 9:55 pm (#)

    What you say is so true!

    We have a compulsory Govt retirement scheme in our country, where the employer contributes 12% and the employee 11%.

    This comes up to a sizeable sum when we retire.

    The statistics show that 90% or a large number finish it off within 3 years.

  2. » Roundup: Help JD @ Get Rich Slowly Win An Award! on Blueprint for Financial Prosperity says:

    January 6th, 2008 at 5:52 pm (#)

    […] crucial to keep spending in check, but this is especially true in retirement when you’re on a fixed income. Resist the […]