Decreased spending in retirement


An article based on information from the Bureau of Labor Statistics shows decreases in spending as people age in retirement. I have ideas as to how to apply this in Retirement View, but I’m not sure they would work.

The idea is to show them needing a certain income for a set number of years, then a smaller income for the next set of years, and an even smaller income for a following set of years.

I’m trying to figure  out how to do that in Retirement View while including inflation.

Would I need to figure the value of a sum with inflation and then reduce that amount by the percent less income they will need that many years on?

Here is an excerpt from the article I am reading I am including the link below.

According to the BLS, there is a spending decrease of 17% between ages 55-65 and ages 65-75, and another decrease of 24% for those over age 75, vs. their age 65-75 counterparts. And that’s more than enough to cover for rising prices, when compared to inflation’s historical average.

So, for someone who is age 55-65 and needs $60,000 to cover their annual living expenses, the BLS numbers suggest that they will likely need 17% less, or $49,800, between age 65-75, and then $37,848 after age 75 (assuming today’s dollars). The BLS numbers don’t suggest that there isn’t inflation experienced during retirement, but rather that we simply buy fewer things

Here’s the link.



Set retirement goal to $0 and don’t use that.

Click on Special Expenses and use ONE LINE per PERIOD…

$50k starts at age 65 for 5 years

$40k starts at 70 for 5 years


You can then model as many periods as you want AND control inflation.

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