To help guide you on your retirement journey, we stay on top of all the latest research on retirement saving and spending.
For years, we have been advising our retirement clients to adopt realistic spending assumptions reflecting what they’ll really need to cover their expenses – and realize their dreams – in retirement.
In the first and most active stage of retirement, we typically counsel retirees to expect to need close to 100% of their pre-retirement spending requirements so they can ensure a comfortable transition to retirement, manage some of those home improvement projects they’ve been putting off, and squeeze in a trip or two from that bucket list.
Now, based on real-life spending data from millions of participants, cutting edge research from J.P Morgan is backing up our advice. In that first stage of retirement, says J.P. Morgan, retirees may need 90% of their pre-retirement spending amounts, not the 60% to 80% that has long been recommended. “Retirees are spending at higher-than-expected levels,” confirms J.P Morgan Asset Management.
Is that cause for worry? Not necessarily. Research also shows that spending slows down in the second and less active stage of retirement.
One of our most important services is working with clients before and during retirement to make sure they are on track. Let us give you the confidence of making sure you are on course for a comfortable, fulfilling retirement while you still have time to refine your retirement roadmap and game plan.
There is nothing more rewarding than helping clients see how their savings and investment strategy can pay off and see them enjoy the retirement they’ve always dreamed of. Haven’t talked to us yet about doing a retirement test run? Just give us a call to get it on the schedule.