Whats your magic number?

Linton

OldMusicGuy wrote: »

A couple of thoughts. Day to day expenditure definitely does decrease over time. I can say for sure that when I am in my 90s we won't be running two cars, nor will we be spending as much on eating out and general entertainment. At some point there will only be one of us instead of two, which will reduce some of the costs, but it will also reduce our income.

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Expenditure may well decrease in old age though old age could be 75, 80 or even 90+. However I feel it is dangerous that you should plan for it to decrease as you could find your choices have been limited when its too late to do anything about it.

OldMusicGuy

Linton wrote: »

Expenditure may well decrease in old age though old age could be 75, 80 or even 90+. However I feel it is dangerous that you should plan for it to decrease as you could find your choices have been limited when its too late to do anything about it.

I have done sensitivity analysis and we can maintain a consistent level of real spending throughout our retirement. But I don't believe that to be realistic so my model allows for downward adjustments to expenditure in later life (I can vary the year at which it kicks in and the level of decrease).