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Not everyone is fully prepared when the time comes toretire, though.
Assuming Theyll Spend Less
Those who retire often think theyll spend less money than they actually do.
This could be for several reasons, such as no longer having a mortgage or car payment.
But this isnt always the case.
Its important to remember that retirement turns your week into six Saturdays and a Sunday, Scott said.
More money is spent on Saturday than any other day of the week.
In a rising-cost environment, over a period of 20-30 years, this is a guaranteed recipe for failure.
The cumulative inflation rate since 2014 is 32.51%, however.
To put this into perspective, $100 in 2014 would be worth about $133 today.
A common mistake is taking astraight-line budgeting approachfor retirement, Scott said.
Eventually, that excitement fades and they settle into aless expensive lifestylein years 10 to 20 of retirement.
Dont reduce your budget, however.
Inflation can still eat away at your funds if youre not careful.
So, what can retirees do to confirm their budgets align with their needs?
Individuals spend anywhere from $35,000 to $108,000 a year.
are major causes of stress, foreclosure and Medicaid filings, Williams said.
Continuing to [withdraw] at pre-correction levels could cause the account to liquidate quicker than planned.
And be sure to take action to minimize that risk and protect your investments.
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