The spending myth that might not hold up in your retirement
Retirement isn’t a financial dead zone. It’s not about shrinking into a smaller life.It’s about choosing how you want to spend your time - and yes, your money.
The spending myth that might not hold up in your retirement
(Spoiler: spending doesn’t always drop as you age)
There’s this persistent little myth that floats around whenever people start planning for retirement:
“You’ll spend less as you get older.”
Sounds logical, doesn’t it? No more commuting to the office. No more work wardrobe. No more takeaway coffees at morning tea, afternoon tea, and going out for Friday lunch. If the mortgage is gone and the kids have moved out (or at least slowed down their wallet-draining efforts), surely your costs will go down too?
Except… that’s not how it works for most people I meet. And interestingly, retirement researchers don’t all agree on what’s coming for future generations either.
Retirement spending: past trends vs what’s ahead
When we look back at earlier generations, we see a clear trend:
Each new generation of retirees starts retirement spending more than the last—and they finish retirement spending more too.
But here’s where it gets tricky. The curve of spending across life appears as a gentle downward slope. Why? Because the data is often comparing different cohorts at different stages: one generation in its 80s and another just entering retirement. So yes, the chart drops. But that doesn’t mean your own personal spending will.
In fact, for most people, the shape of spending over retirement is relatively flat. What changes is what you’re spending on.
The real rhythm of retirement spending
In the early years, it’s all go-go-go.
Travel, activities, entertainment, leisure—all those things you finally have time for.
Then, in the middle years, spending on your home, your health, and your family might creep up.
And in later life, aged care, in-home services, and health support can start taking bigger bites out of the budget.
Meanwhile, essentials like housing, insurance, and utilities often stay steady—not really helping that “spending goes down” narrative unless you force it down.
The truth? You might spend more
Especially in the first 5 to 10 years after leaving full-time work. Why?
Because you’ve finally got time - and a long list of things you’ve been waiting to do.
This is your Epic Retirement. You’re healthy, energetic, and ready to say yes to the good stuff:
Big holidays
Club memberships
Home upgrades
Hobbies that mysteriously require lots of gear
Trips to see the grandkids (who are somehow always interstate or overseas)
I’ve looked at hundreds of retirement budgets. And honestly? Most people spend more in the early years - not less.
And yes, spending can drop later… kind of
Spending might ease off in your 80s, depending on your health, lifestyle, and support needs. But even then — it’s not guaranteed. If you need extra help at home, care services, or residential aged care, those costs can ramp right back up.
That classic image of spending gently tapering off as you age? Too simplistic. Real life’s not that neat.
So what does this mean for your plan?
It means you need to:
Budget properly for your epic retirement years
Build in flexibility, because life doesn’t follow a straight line
Give yourself permission to enjoy the early years, guilt-free
Retirement isn’t a financial dead zone. It’s not about shrinking into a smaller life.
It’s about choosing how you want to spend your time - and yes, your money.
Don’t short-change your Epic Retirement. You’ve earned it.
Is it just me, or is 2025 already flying by?
Lately, I’ve been having the same conversation over and over—with readers, podcast guests, and people inside our Epic Retirement course:
“Retirement is feeling closer than I expected. And I’m not sure I’m ready.”
Not just financially - but mentally, emotionally, practically.
It’s the “What comes next?” question. And I’m convinced it’s one of the most important conversations we can have. But I have to ask — are you having that conversation yet?
This week, we wrapped up the winter edition of the How to Have an Epic Retirement Flagship Course in Australia. And the Epic Retirement Club surged through 375,000 members and it was clear how global this conversation really is. No matter where people live—Australia, the UK, Canada, the US—the questions are surprisingly similar:
How much is enough?
How do I know if I’m on track?
What if I want to work a little, or travel a lot, or change everything?
At home, it’s been a big week too. My 12-year-old pup, who’s been recovering from full paralysis, stood up on his own for the first time in months. Now we’re crossing fingers (and paws) for his first steps.
And I’m about to head into the studio to record the audiobook for Prime Time. Twelve days of voice work ahead — wish me luck!
As always, I love hearing your thoughts. Hit reply or email me at bec@epicretirement.net.
Warmly, Bec Wilson
Author, podcast host, columnist, retirement educator, and guest speaker
Don’t forget, Prime Time is available for pre-order now on Amazon Australia here. International editions will be released — we just don’t have dates yet.
Last week on Prime Time, I sat down with one of the world’s most experienced scam investigators, Ken Gamble. Ken has been tracking down fraudsters and exposing global scam syndicates since the 1980s - and his insights are jaw-dropping. It seems relevant to everyone in the Western world.
We went deep on how scammers operate, why midlife and older Australians are prime targets, and what you can do to protect yourself. From fake bond offers to crypto cons, and even cloned Facebook groups (yep, including fake ones pretending to be me), this episode is a must-listen if you, or anyone you care about, uses the internet (which let’s face it — is all of us!)
Ken doesn’t just talk theory - he’s lived it. He’s tracked criminals across continents, infiltrated call centres, and helped put scammers behind bars. This one’s packed with red flags, insider tips, and some genuinely shocking stories.
LISTEN TO THIS EPISODE OF THE PODCAST HERE:
Last of all, if you haven’t read the book, How to Have an Epic Retirement, you can order your copy from Amazon online.
Before you quit your job and sell the house... read this!
Everything I share here is general information, not personal financial, legal or tax advice. It hasn’t been tailored to your specific life, goals, money situation, or brilliant retirement plans—so before making any big decisions, please chat to a licensed financial adviser or relevant professional who can look at your individual circumstances.
I do my best to keep things accurate and current, but I can’t guarantee it (rules change, governments shuffle things around, and I’m only human). Any figures or examples are just that—examples—to help explain things, and they might not reflect the latest laws or your actual numbers.
Use this as a helpful guide, not gospel.