When the Rich Retire

You might think that being rich means never having to worry about money, but that’s not true. In fact, recent studies have reported that people who qualify as “wealthy” typically tend to have to reduce their spending in retirement MORE than their peers who earn average incomes.  

Partially, this is just practical. After all, the less money someone has, the less spending they have to reduce. However, it is interesting to note that, even when they don’t really HAVE to, the wealthy tend to cut their spending significantly once they reach retirement. These people often choose to forego a large amount of discretionary spending, all in an effort to save money just in case.

And, really, that saving for the “just in case” situations in life is smart…no matter how much money a person has. Life can throw all kinds of curveballs, especially in a person’s later years, so it’s always better to be safe than sorry when it comes to being cautious with money.

This is especially true since not ALL spending reduces in retirement. In fact, certain types of expenses, such as health care related costs, are very likely to increase in retirement years. For this reason and because life has a way of delivering the unexpected,, whether you’re rich, poor, or in between like most of us, it’s smart to always have a backup plan in your retirement years.

Be sure to have extra money stashed away in savings for those “just in case” moments, make sure you have good health care coverage, and, when possible, hire a good, qualified financial adviser to provide you with help and advice when it comes to managing your money in your retirement years.