Social Security Resources | Retirement Planning
Even if you are decades away from retirement, you’ll benefit by visiting the following Social Security Resources and plan your retirement. Remember the goal, Financial Independence Retire Early (FIRE).
Retirement Budget Planning
Create an estimate of your retirement budget before you retire. The following report helps you understand how your expenses may change or remain the same during your retirement years: Change in Household Spending After Retirement: Results from a Longitudinal Sample (November 2015, Employee Benefit Research Institute).
- This study shows how household spending changed in the immediate years following retirement by analyzing the spending patterns of a fixed group of households up to six years after their retirement.
- The data show that household spending dropped at the beginning of retirement. In the first two years of retirement, median household spending dropped by 5.5 percent from pre-retirement spending levels, and by 12.5 percent by the third or fourth year of retirement. But the spending reduction slowed down after the fourth year.
- Although average spending in retirement fell, a large percentage of households experienced higher spending following retirement. In the first two years of retirement, 45.9 percent of households spent more than what they had spent just before retirement. This declined to 33.4 percent by the sixth year of retirement.
Great read for those planning for retirement!