• I’ve heard that the financial services industry inflates or overestimates the amount average retirees actually spend. The replacement figure of 70 percent of income seems to be excessive according to several articles I’ve read. It would be helpful to have more data on how much people actually spend during retirement and it would make it easier to plan for retirement.

  • Tom – I think knowing what other people spend is of little value – I want to know (and do know) what I spend. Therefore my “replacement income figure” is 100% i.e. my expenses are not going (and didn’t) change much after stopping work. The only way to know what you spend is to track expenses and this will give you accurate data for you to base your decisions on.

  • Mr Blum is correct and some, for the first several years spend more as time and health permit. I would also hasten to suggest that at a current rate of $1100 per week per person (after tax), a retirement home on the other end will require careful budgeting. For those who opt for more prompt medical care for chronic conditions, should also factor in services from the US system or a 2 tier system here. Retirement should be enjoyable, not just survivable.

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