The phases in retirement spending

Video transcript - The phases in retirement spending

Hello and welcome back to our Retire Happy series.

When planning what life after work will look like, it's important to understand the different phases of retirement pending.

Yes Cam, typically there are three distinct phases and behaviours of spending money in retirement.

The first is the go-go years when you first retire somewhere between the ages of 60 and 75. These will be your most active years and the best time to tick off your bucket list. It's when you have more energy to embark on all the adventures you have been looking forward to, whether dining out, traveling, starting new hobbies, or catching up with family and friends.

The second phase is the slow-go years, around ages 75 to 85. As you may have less energy, activities may be less often and closer to home.  Dining out might be at the local club for a week night special, a couple of drinks, and back home to watch your favourite TV show.

The last phase is the no-go years from around 85 onwards. Life is likely to be quieter with possible health issues.  Staying connected to family and friends will still be important, but a trip out might be lunch at the pub.

When you retire, there are many changes, both financially and emotionally, that you might need to address.

When you're accustomed to spending less than what you earn, it can feel daunting at retirement to suddenly start spending your savings.

Generally speaking, people do not tend to spend as much later in retirement as they do at the start.

It is important that you live your aspirations and enjoy your retirement while you are relatively healthy and active. You do not want to put these things off and I'm sure your family would want you to enjoy your retirement, as you have worked hard for it.

Join us in the next clip to see the power of small super balances.