Why spending in retirement doesn’t drop the way some expect it to

And why that’s not necessarily a bad thing

Mar 30, 2025

One of the biggest myths in retirement planning is that your spending will magically drop the moment you stop working.

Some in the retirement industry will even tell you that your expenses should fall to 80% of your pre-retirement budget almost overnight. But today I want to give you a different perspective—especially if you’re part of the new generation of retirees who want more from retirement.

There’s a long-held idea that once the mortgage is paid, the kids have left home, and the office clothes are packed away for good, your cost of living will shrink dramatically.

And sure, for some people, that happens. But here’s the truth that doesn’t get talked about enough: for many others, spending doesn’t drop—it just shifts. And often, what it shifts toward is a whole lot more epic.

I call it your epic experiences budget. It’s the part of retirement spending that isn’t about your basic needs—it’s about living well. And if you don’t factor it into your planning, you might find yourself short on fun, not just funds.

Retirement doesn’t shrink your spending. It shifts it.

There are plenty of things you stop spending on when you leave work. The daily commute. Takeaway lunches at your desk. Expensive work clothes. The Friday night drinks you were too tired to enjoy anyway.

But once you have more time and more freedom, you start spending in new ways. And those ways often bring more joy, connection, and meaning. Here’s what we often see:

Travel spending takes off.
The first 5 to 10 years of retirement are often the most active. People start ticking off wish lists—walking the Camino, seeing the Greek Islands, Spain or Asia, caravanning around your home country, or taking that long-awaited massive trip. Even smaller, regular adventures—weekend getaways or visits to the grandkids—can add up quickly.

More spare time = more discretionary spending.
When you’ve got time, you say yes to things you enjoy. You might join a wine club, take up a hobby, go to concerts or festivals, or do that $1,000 course you've always been curious about. Time creates space for spontaneity—and that can come with a price tag.

Helping loved ones becomes a new priority (if you can afford it).
Many people in their 60s and 70s choose to support their families—helping with school fees, gifting cash for a home deposit, or paying for a family holiday. It’s not expected, but it’s part of the way some people want to spend their money: generously.

Comfort, convenience, and quality of life start to matter more.
You might decide to pay for a cleaner, upgrade appliances, or renovate instead of downsizing. For those who can afford it, spending isn’t about indulgence—it’s about easing into this new chapter with more comfort and less stress.

Of course, not everyone can afford all of these things.

But that’s exactly why it’s worth talking about—because even if you can’t do everything, you might still want to do something. And planning for joy, at whatever scale is realistic, helps you avoid being caught off guard.

So why are we still planning as if we’ll spend less?

The idea that retirement equals frugality is outdated. It’s based on a different era—when people worked until 65, lived until 75, and moved through a single, slower retirement phase. And most people back then were dependent on the age pension.

But today? Retirement is more like a series of life stages.

You’ve got your prime time years, often before you fully retire. Then come your epic retirement years—the active, energetic phase when travel and fun take centre stage. After that come the aging years, where things slow down a little, followed by the frailty phase, where support becomes the priority.

Each stage has its own spending pattern. And that’s why a flat, fixed number doesn’t make much sense anymore.

Here’s how to plan for your epic goals:

Be honest with yourself about your lifestyle goals.
Retirement isn’t about cutting back—it’s about living well on your own terms, (and living within your means). Start with your vision, not a generic budget spreadsheet.

Model your spending in stages.
Think of your retirement in 5- to 10-year blocks. Your travel budget at 65 will likely look very different from your needs at 80.

Build flexibility into your retirement income.
Whether it’s pension fund drawdowns, investments outside of your pension fund, or part-time work, the more flexible your income, the easier it is to say yes to the moments that matter.

Stop guilt-tripping yourself for spending on joy.
This is exactly what you saved for. Joy isn’t a luxury—it’s part of a life well lived.

Your epic retirement isn’t about spending recklessly—it’s about spending intentionally, on the things that bring you joy and connection.

Plan for the kind of retirement that reflects you—not the version someone else predicted you’d need.

Australian Epic Retirement Course — Booking now for April 10 kickoff

The next How to Have an Epic Retirement 6 week flagship course kicks off on the 10th April. And if you want the 25% off earlybird price then you’ll need to book in the next 48 hours. BOOK HERE | DOWNLOAD A BROCHURE

Our last course has just finished — look at some of the feedback coming in:

Thank you for your positive and vibrant delivery of your modules within this course. Clear, concise and to the point, that is not easy to do when you need to cover so much information to a wide audience at different levels of their Epic Retirement. Well Done and Thank you. Your passion to help inform people on all the important topics have been invaluable and the knowledge I have learnt will certainly prepare me for my Epic Retirement.
The course is amazing. Well structured, great content, Bec is very clear and it is easy to understand her message. There is so much to take in, very happy that we also have the workbook and paperback version to take and make notes as we go.
Great course. Bec you are really offering an amazing service. Thank you. I love your entrepreneurial bent is also providing such a helpful service.

The course is interesting and well designed and the concepts clearly articulated. Picked up interesting facts from Q&A sessions too.

It’s busy times downunder as I prepare for the launch of my new book here in Oz for pre-retirees (called Prime Time: the 27 rules for the new midlife). It’s coming out in July. So I’m up to the final edits — and next week we can finally reveal the cover…

Meanwhile our international followers have been waiting patiently for word of when we might be releasing our international editions of How to Have an Epic Retirement. It looks like the first cab off the rank will be in the UK — and the book won’t take too long to get to you in retailers and online because it is all ready and waiting for publishers to push the print button (well almost). Now we wait for word on Canada and the USA… and New Zealanders will be included in an Aussie edition in 2026. So progress is being made — thank you for your patience!

For Aussies living overseas and considering moving home, our next Epic Retirement Course is kicking off on April 10. Now’s the time to book your place.

And for those following along, my little 12-year old puppy continues to make progress — so we’re hopeful he’ll get his mobility back soon.

Got some thoughts about budgeting and spending? Leave a comment or write me an email. I love to hear from you!