Consumer Financial Protection Bureau: Retirement Security and Financial Decision-making - Research Brief

The first years in retirement are, on average, retirees’ most expensive years.1 Furthermore, a
growing number of retirees are not experiencing the expected gradual reduction in spending
after they retire.2
The Consumer Financial Protection Bureau commissioned a study to identify ways to increase
retirement preparedness and protect retirees from overspending their savings in early
retirement. 3 The study examined the financial resources and expenses of people who retired
between 1992 and 2014 to assess whether they were able to maintain the same spending level on
key categories for five consecutive years after retiring.4 The study examined how the ability to
maintain the same spending level varies by sex, race, marital status, health status, educational
attainment, and generation, as well as financial circumstances and retirement decisions.
This report describes the findings of the study, and highlights decisions to consider for
protecting financial security before retiring.