Retirees too Spendthrift

Posted by: Sophie H. | Dec 17,2007


This has got to be one of the strangest surveys about retirement ever devised.  It is further proof of my hypothesis that there is a survey to support any notion, such as the idea that retirees are saving too much money.  That’s a shocking idea, especially considering that there are stacks of surveys saying just the opposite.  

Surveys aren’t 100% scientific, though.  I’ve never quite understood how they can survey 1000 people and claim that this is an accurate representation of millions of people.  It makes for interesting reading anyway.  This new survey claims that retirees have been so shocked into saving for retirement that they are not spending enough money, as they are afraid that they’ll need the money for a rainy day.  

Let me tell you how the survey makes sense.  I can imagine a retiree who saved dutifully throughout her entire life, budgeting effectively, cutting corners when necessary, and being trained to be frugal.  Perhaps she’s been told (by me) that she needed to make sure she needed to have surplus money on hand to cover costly medical expenses, which are bound to go up as one ages.  If not, she runs the risk of paying for medical expenses and other necessities via credit, which is the last thing you want to do.  

That all makes sense and part of the equation is a good one: the frugality and budgeting half.  By all means, you need to save and invest effectively before retirement.  But once retirement comes, you should let loose and enjoy yourself.  This is especially true in your late sixties and seventies, as you won’t have as much energy or enthusiasm as time goes on, no matter if you can afford it or not.  

I’m not saying go nuts, however.  This message is for those retirees who are wary of spending any money post-retirement.  If you have enough to vacation and perhaps cover potential medical bills, then by all means enjoy your retirement days.  

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