The Finance Blogger

Reluctant to Spend Retirement Savings

reluctant to spend retirement savingsYou have saved for retirement for the past 30 years and now it is time to spend it. Most people are reluctant to spend retirement savings, even if they have a pension. Part of this phenomenon is habit and part of it is worry about the future. Most people worry about this issue and do not spend the money. They put off travel, trips to family and even avoid doing some of their favorite hobbies. You could end up with a nest egg to pass along to your family. But would you not rather enjoy yourself and spend some of the money? There is an approach to dealing with this issue which will help to meet your concerns and also allow you to enjoy life.

Reluctant to Spend Retirement Savings – Plan

The first step is to develop a budget that takes into account all of your current retired income and expenses. These are your day to day expenses that you need to live on. Next plan for larger expenses. For example repairs to the house, replace the car and emergency health issues.

Once you have this plan, you will have some idea of how much money you will need to maintain your lifestyle. It will also tell you how much of your savings you will need to draw down each year.

Now that these numbers are known, further plans can be developed. You will be able to determine if you need to keep working to fulfill your dreams for example. Trips can be planned. Projects you have put off can also be considered.

While this planning activity may not be your favorite thing to do, it will answer a great number of questions. Most importantly knowing these answers will allow you to sleep better at night.

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