Everybody gets it. A lot of people give it. Retirement advice is not something to throw around lightly. It isn’t the same as advice on what movie to go see, or restaurant to try out, or even marital advice. This can ruin your retirement and there is no going back on that. You simply can’t replace the income you lose during retirement without going back to work.
Forbes magazine has an interesting article on 10 bad pieces of retirement advice that hits home. One in particular has been a subject of recent conversations I’ve had with clients across the country with the same type of concerns. The idea is wrapped around living more simply, and spending less during your retirement years than before, and that just is not the case.
By retirement, it’s probably—well, hopefully—just you and your spouse. Living for two means a simple lifestyle. Maybe a splurge or two, but nothing extravagant. Soon, the trips and the outings and the grandkids all begin to add up. “That was the nice thing about work: it kept you from spending money,” says Frank Fantozzi, a wealth manager and CEO of Planned Financial Services. “I don’t see people slowing down on their spending until into their 70s. People at 62, 65, into their 60s are seeing their spending increase.” That’s a common refrain from advisers. Marty Leclerc, who runs Bryn Mawr, Penn.-based Barrack Yack Advisors, says it’s mostly a mix of traveling more and spending more on entertainment to fill those leisure hours—and ever growing health care costs. Those costs alone are increasing by 3% to 5% a year.
The rest of the article and slideshow can be found on the Forbes website