How Do Spending Needs Evolve During Retirement?
Most people’s spending patterns change over the course of retirement – expenses look very different at 90 than they do at 65. Yet most research on retirement withdrawal rates relies on constant inflation-adjusted withdrawals to develop a client’s forward-looking budget. Such an unrealistic, one-size-fits-all approach can be disastrous if a client inadvertently retires with insufficient savings. Is there a better way?
Pfau, Wade, "How Do Spending Needs Evolve During Retirement?" (2012). Faculty Publications. 165.