Rethinking Retirement Spending with a Plan Built for Real Life
At Bradford Financial Center, we often meet people who have done many things right. They have saved consistently, invested thoughtfully, and built a strong foundation for retirement.
But there is one assumption that quietly shows up in many plans.
That spending will stay the same from year one to year thirty.
It sounds logical. It feels safe. But it does not reflect how retirement actually unfolds, and in some cases, it can lead to more stress than clarity.
The Retirement Concern We Hear Most Often
In our conversations with clients across Iowa, one concern comes up again and again: Running out of money
That concern is backed by national data. According to recent AARP research, nearly 60% of Americans cite outliving their savings as their top financial fear.
But what we often see is not a math problem. It is a confidence problem.
Clients hesitate to spend in the early years of retirement, not because they cannot, but because they are unsure if they should.
- What if I spend too much now?
- What if something changes later?
- What if I need more at 80 than I expect?
The result is a retirement that can feel more restricted than it needs to be, especially during the years when health, energy, and flexibility are at their peak.
What the Data Actually Shows About Retirement Spending
Recent research paints a much different picture than a flat spending line.
According to J.P. Morgan and Morningstar data, retirement spending tends to follow a curve rather than a straight line.
• Households in their early retirement years spend the most, often driven by travel, experiences, and long-delayed projects
• Spending typically declines by 10 to 15 percent as retirees move through their 70s and lifestyle naturally slows
• In later years, overall spending may decrease, but healthcare becomes a larger and more concentrated expense
For example, average annual spending for retirees in their 60s is often more than $70,000, while spending in later decades trends lower outside of healthcare-related costs.
At the same time, healthcare planning remains critical. Genworth’s latest data shows the median cost of a private nursing home room exceeding $10,000 per month, reinforcing the need for proactive long-term care planning.
The key takeaway: Retirement is not static. It evolves.
Why This Matters for Your Plan
When a retirement plan assumes the same withdrawal every year, it can unintentionally create pressure.
Thirty years of identical income needs can make early retirement spending feel risky, even when it may be entirely appropriate.
At Bradford Financial Center, we take a different approach.
We build retirement income strategies that reflect how life actually changes.
That means planning for:
• Higher discretionary spending in the early years
• A natural moderation in mid-retirement
• Strategic preparation for healthcare and legacy priorities later on
This more dynamic approach allows for better alignment between your financial plan and your real-life goals.
A Better Question to Ask
Instead of asking...
Am I spending too much?
A more productive question may be...
Is my plan designed for how retirement actually works?
Because when your plan reflects reality, it becomes easier to make confident decisions, not just cautious ones.
Build a Retirement Plan That Works for You
At Bradford Financial Center, we help individuals and families create retirement strategies that are built around real life, not rigid assumptions.
If you are approaching retirement or already there, this is the right time to revisit your plan and ensure it supports both your long-term security and your ability to enjoy the years ahead.
Explore our retirement planning services and start a conversation with our team.
👉 https://www.bradfordfinancialcenter.com/retirement-planning
Sources:
- AARP, 2024 [URL: https://www.aarp.org/press/releases/2024-4-24-new-aarp-survey-1-in-5-americans-ages-50-have-no-retirement-savings/]
- Morningstar, 2025 [URL: https://www.morningstar.com/content/cs-assets/v3/assets/blt9415ea4cc4157833/bltb73b87c5d0c70ead/692f43f57737a31596684522/working_file_11.19_FINAL_REVISE.pdf#page=11]
- J.P. Morgan, 2025 [URL: https://am.jpmorgan.com/content/dam/jpm-am-aem/americas/us/en/insights/retirement-insights/retirement-by-the-numbers.pdf]
- Bank of America, 2025 [URL: https://institute.bankofamerica.com/content/dam/economic-insights/evolution-of-retiree-spending.pdf]
- Genworth, 2025 [URL: https://www.nasdaq.com/press-release/genworth-and-carescout-release-cost-care-survey-results-2024-2025-03-04]
This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2026 Advisor Websites.
