Retirement researchers increasingly recognize that real spending does not remain flat throughout retirement. As Dr. David Blanchett emphasized in his recent Think Advisor article:
“Integrating reduced real spending into retirement income models not only improves the outcome of decisions around appropriate portfolio withdrawal rates, but also optimal portfolios, allocations to lifetime income, and so forth. Therefore, the more widely reduced real spending is leveraged in retirement research and financial planning tools, the more realistic the guidance is going to be.”
