Decoding Retiree Spending

KEY INSIGHTS
■ Income replacement strategies often assume inflation-adjusted spending
in retirement is flat; however, the data reveals that retiree spending declines
annually by 2%, and it varies by wealth.
■ Retirees typically choose to adjust their nondiscretionary spending (often
considered fixed spending) to match their guaranteed income, challenging
the notion that these expenses are truly fixed.
■ Retiree spending behavior reveals a preference for asset preservation. Aligning
products and services that account for this will hasten adoption of retirement
income solutions.