Week 44 Day 4: The Retirement Spending Smile: Spending Declines With Age

Retirees do not spend the same amount every year. Studies show retirement spending follows a 'smile' pattern: high in the early years (travel, hobbies), declining in the middle years (slowing activity...

Retirees do not spend the same amount every year. Studies show retirement spending follows a 'smile' pattern: high in the early years (travel, hobbies), declining in the middle years (slowing activity), and potentially rising at the end (healthcare). The 4% rule assumes constant spending, which does not match reality.