Liz Weston: Will you really run out of money in retirement? | Lifestyles

Liz Weston: Will you really run out of money in retirement? | Lifestyles

SOME WHO COULD SPEND MORE DON’T

However, the researchers also found that many of the households that had enough money were spending as if they did not. In fact, 29% of the best-funded households actually had more wealth 10 years into retirement.

That resonates with financial planners, who say they often have clients who spend less — sometimes much less — than their wealth would support. Some want to leave inheritances for their kids or guard against financial shocks, such as long-term care. In other cases, they’re just more comfortable continuing old habits.

“If you are in the habit of being frugal, you tend to remain that way,” says certified financial planner Dana Anspach of Scottsdale, Arizona.

People can take frugality too far, though, if fear keeps them from getting the most out of their retirements, Blanchett says.

“You might end up not spending enough money when you could enjoy it more,” he says.

A LITTLE PLANNING CAN GO A LONG WAY

Picking the “right” level of spending in retirement isn’t easy because of all the unknowns, including how long you’ll live and your future health. Having a clear idea of what your expenses are likely to be in retirement, as well as how much income you can expect, can help you create a sustainable spending plan. A good financial planner — preferably a fee-only fiduciary advisor committed to putting your best interests first — could be helpful. Your brokerage or 401(k) provider also may have resources to help guide you.

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