Reported 1 day ago
Many retirees face difficulty transitioning from a saving to a spending mindset, often leading to reduced spending despite having the means. Research shows around 25% of retirees intentionally cut back on expenses, particularly those relying on personal savings instead of guaranteed income sources like pensions or Social Security. Psychological factors, such as loss aversion and present bias, contribute to this phenomenon, with retirees fearing future financial instability. To combat this, retirees should assess their financial situation, track their spending habits, and consider viewing their retirement income as a paycheque to encourage more spending and enjoyment during their retirement years.
Source: YAHOO