Time and Money in Retirement: Planning for a Life Well-Lived – The Human Side of Money presented by Client Care

Time and money are two critical components of retirement, deeply interwoven in shaping the quality of life during this phase. Studies reveal that retirees’ spending typically does not increase in line with inflation, underscoring the importance of establishing and maintaining good spending habits early in retirement.

A well-structured plan

Developing a thoughtful long-term spending plan is essential to alleviate financial stress and support a fulfilling lifestyle. A well-structured plan enables retirees to better anticipate and accommodate changes in needs and wants over the course of a typical 30-year retirement. For instance, early retirement years are often characterised by greater health, mobility, and a desire to explore, making it crucial to allocate sufficient resources for discretionary spending during this phase.

Unfortunately, many retirees fall into the trap of underspending during their early years, missing opportunities to create meaningful experiences and memories. Understanding core spending needs—such as housing, healthcare, and daily living expenses—and separating these from discretionary spending for travel, hobbies, and leisure activities can create clarity and balance in financial planning.

Make deliberate choices

A lack of structure around spending can lead to a sense of aimlessness, making time seem to pass more quickly. To counter this, retirees should approach life with intentionality and design their days around chosen activities, passions, and relationships. Making deliberate choices about how to spend both time and money enhances the retirement experience and ensures that life doesn’t simply “happen” to them.

Regular reviews of the financial plan are vital to ensure it remains aligned with changing circumstances and goals. As the years progress, needs may shift from travel and exploration to comfort and healthcare. Adjusting the plan ensures continued relevance and stability.

Ultimately, the key to a fulfilling retirement is finding the balance between financial prudence and purposeful living. By designing your retirement life and making intentional choices, you can enjoy this phase to its fullest while maintaining peace of mind about your finances.

Remember, not making choices is a choice in itself—so choose wisely.

Dirk Groeneveld, Certified Financial Planner.