What’s Your Retirement Money Management Style?

In retirement, are you more of a saver or a spender? Has living on a fixed income felt pretty comfortable, or are you feeling the pinch?

By John Martin

Depending on your financial situation when you retired, the transition to living on a fixed income might have been as easy as relaxing on the beach or as challenging as swimming against the current.

Making the most of your retirement income will mean being conscious of your spending and saving habits, and taking strategic steps to ensure your income continues to meet your needs.

Let’s take a trip to the beach and see which retirement money management style matches you best!

Dedicated Saver

After saving and planning for retirement throughout your career, you’ve just retired! You have enough money coming in to live comfortably, and you keep a weather eye on your budget. If this is you, keep up the good work. If you have extra cash flow, consider building your emergency fund to help anchor your finances in unexpectedly rough seas.

Quite Comfortable

You’ve been retired for 10 years or more and can still make ends meet without dipping into your savings too much. Your retirement planning and saving have paid off, and you can bask in the sun. Just don’t kick back so far that you forget to monitor your cash flow and plan for unexpected waves. With 10 or 20 more years of retirement ahead of you, it’s important to keep reviewing your budget and adjust it to accommodate cost of living and spending habits. 

Satisfied Spender

You’ve retired and you’re getting used to your new lifestyle, enjoying your time to its fullest. You have enough money coming in right now, but you tend to spend it fast. If this is you, getting into the habit of saving is one of the most important things you can do to protect your future. Every castle needs a treasury, and you don’t want to get swept away in the rising tide of inflation.

Feeling the Pinch

After 10 or more years of retirement, you’ve noticed your money doesn’t buy as much as it used to. You aren’t cutting back on the things you need, but on the things you like. If this is you, you’re not alone, as many retirees find themselves in this position. Like the hermit crab, if your shell isn’t fitting like it used to, venturing back into the job market part-time or adjusting your budget to better meet your needs can be a good way to escape that pinched feeling.

Personal Finance