Some expenses go down, sure. Others will remain roughly the same. Some spending categories, though, can unfortunately be expected to go up.
Every $1,000 you plan to spend per year requires roughly an extra $25,000 to $33,000 in savings to support it.
As was the case when we looked at costs dropping, none of these will apply to everyone, but it’s a good idea to think about your own expenses and how they might change in retirement.
As our bodies age, they tend to need more maintenance and repair work. Early retirees can expect to visit the good doctor more often in their fifties and early sixties than they did in their thirties and forties.
You can travel at off-peak times, take advantage of last-minute bargains, and slow travel in a manner that doesn’t cost much more than your normal day-to-day. However, if you’re anything like me, you can expect the travel budget to grow in retirement.
Education costs come in many forms. If they will go through college after you stop earning an income, you’d better have planned ahead by funding 529 Plans or helping them apply for financial aid.