For most people, paying for retirement may be easier than thought.
How can that be?
Simple. (Kind of.)
The much discussed “Retirement Smile” – the idea that our spending steadily decreases as we approach retirement and increases in advanced old age only due to increasing health care costs – has been re-examined with better data sources. The results, for most – but not all — people, will be better.
Health events are not evenly distributed. Some people are hale and hearty almost forever. Others suffer one medical problem after another. So while most retirees will experience declining expenses throughout their retirement, a smaller group will suffer much higher health care expenses.
But even that isn’t as big a problem as every long-term care insurance salesperson will suggest.
Want to learn more?
Then watch the “Erin Talks Money” YouTube episode that will walk you through the entire history of the Retirement Smile and the related research and statistics. You’ll need 20 minutes, but it will be entirely worth your time and attention.
You can see the video here: https://www.youtube.com/watch?v=IOPWlBtsPNU
The Retirement Smile idea existed before David Blanchett popularized it in 2013. The first I saw of the idea was research by Kenn Taccino and Cynthia Salzman in 1999. It was also explored by Ty Bernicke. You can find a collection of my columns on the subject on my archival website:
https://scottburns.com/?s=Retirement+Smile
My columns typically run 700 words, excluding linked sources. So if the subject is new to you, you can start with small bites and do the deep dive over time.
By the way…
I am an official member of the “Old-Old.” I can testify to the accuracy of declining spending in retirement. So can my wife, only a few years younger.
Here’s some of the easy, happy evidence. We make smaller batches of margaritas. We prefer going to restaurants for lunch when entrees are smaller. We still travel, but less. And, trust me, living in Johnson City, Texas, doesn’t require clothing choices beyond what can be found at Tractor Supply. One tie will last a lifetime.
This information is distributed for education purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, product, or service.
Photo: 6/10/24 Raising a glass to another day on the Camino de Santiago. The fellow next to me is my brother Doug, the guy I call the Zen Reacher.
(c) Scott Burns, 2026