The Consequences of Overestimating Retirement Expenses

This week, Advisor Perspectives published our article, The Consequences of Overestimating Retirement Expenses.  The article discusses some of the weaknesses of using traditional planning approaches that target constant real dollar spending for a retiree’s entire planning period.  It also discusses how these weaknesses can be addressed using the Actuarial Approach advocated in this website.  We provide an example for a hypothetical couple that uses our Actuarial Budget Calculator (Retirees) workbook.