Retirement spending: You may need less than you think

Retirement spending: You may need less than you think

Many need 10% to 30% less than planners suggest.

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David Blanchett, head of retirement research at Morningstar Investment Management, ran the numbers on the actual spending patterns of retired couples over 30 years. He tracked three annual spending levels: US $25,000, $50,000 and $100,000. He found that as couples aged, they withdrew less than anticipated, mainly because they had simpler lifestyles. As a result, many retirees may need 10% to 30% less in savings than planners suggest.

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Source: Morningstar Investment Management