10 Signs You’ll Need Your Children’s Help In Retirement

You’re Withdrawing Too Much Early in Retirement

Withdrawals during retirement are not always equal. Spending on travel and “toys” like a boat or a motor home might be higher in the first few years of retirement. These expenditures tend to be smaller as you age and slow down. But that doesn’t necessarily mean retirement will become less expensive later.

Later in retirement, high medical costs can replace the spending you did earlier on. Couple medical costs with the fact that you might live longer than expected, and you can see how it can crimp your nest egg’s ability to sustain you throughout retirement. So don’t withdraw too much early in retirement in the hope that expenses will decrease later in life.

In retirement, you will not have a job’s salary and benefits to help cover expenses such as healthcare and travel costs, Poolman said. You might have to spend more money on long-term care for yourself or your parents.

“On top of these necessary investments, retirees often like to cross things off their bucket lists and engage in leisurely activities such as traveling — all of which cost money,” Poolman said.