In Retirement, Your Spending Could Fluctuate
Your retirement income strategy will almost certainly evolve. How much you spend will vary from year to year, and in some years, you will spend more on some things than others.
At the start of your retirement, you may spend more than you think. A recent J.P. Morgan Asset Management analysis of more than 5 million Chase accounts confirms this tendency. Good times, adventures, and costs related to your retirement transition can add up quickly, and you might find that you are spending as much or more than you did when you were working. So this could call for an adjustment to your retirement income approach.
One other thing to note: While your health care costs may rise as you age, the money you spend on travel, transportation, food, or housing may vary greatly from one year to the next and even decline with time. A meeting to assess your potential income needs for the year ahead is a good idea.
Pet Ownership Could Correlate with Healthier Aging
Each fall, the American Association of Retired Persons (AARP) and the University of Michigan sponsor a National Poll on Healthy Aging. In the 2018 poll, a majority of adults age 50–80 said that they owned a pet, and many reported distinct benefits from that friendship. Eighty-six percent said that their pets made them feel loved, and 79% credited their pets for reducing stress in their daily lives.
There was more. Forty-six percent of the respondents who indicated they were pet owners and in fair or poor health said that their pets help distract them from their pain, and 72% of these same respondents noted that their pets helped them to contend with physical or emotional symptoms.
Additionally, 73% of all pet owners polled indicated their pets gave them a sense of purpose, and 64% said that their pet led them to be more physically active than they would be otherwise.
If owning a pet seems like too much responsibility to take on, consider a little pet therapy. Organizations like the Alliance of Therapy Dogs and Therapy Dogs International can bring you the company of a trained service dog for 30-minute or 60-minute sessions.
On the Bright Side
A couple of data points suggest that baby boomers may be fulfilling their aspiration to stay in the workforce longer. Boston College’s Center for Retirement Research says that 65.1% of Americans age 55–64 held a job early in 2019, an increase from 63.9% in 2015. The Bureau of Labor Statistics forecasts that by 2024, there will be 4.5% more Americans age 65–74 who are either working or actively seeking work.
Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Lighthouse Financial, LLC., a Registered Investment Advisor. Cambridge and Lighthouse Financial, LLC., are not affiliated.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.
1 – cnbc.com/2019/03/05/these-surprising-spending-truths-could-upend-your-retirement/ [3/6/19]
2 – www.marketwatch.com/story/5-reasons-seniors-should-consider-getting-a-pet-2019-04-03 [4/3/19]
3 – squaredawayblog.bc.edu/squared-away/baby-boomers-labor-force-rebounds/ [2/26/19]