Exposed: 3 Cent Crypto to Explode June 24th?

Chris Rowe, the man who spotted 44 different coins that have returned over 100%, is now making the biggest crypto call of his ENTIRE career.... Because a powerful crypto event will trigger on June 24th... Sending hundreds of tiny cryptos soaring 5X, 50X, even 100X -- in just days.

The Psychology of Retirement Income: From Saving to Spending

Samantha Lamas of Morningstar
November 26, 2024

The narrative of a miserly, Scrooge-like figure hoarding his wealth for years instead of enjoying his retirement might seem unbelievable--but unfortunately, it isn't relegated only to fiction. It's a cold reality for many retirees.

According to the Life Cycle Hypothesis, this shouldn't need to happen. A retiree who is financially prepared for retirement should keep a consistent income in retirement, and her overall consumption should not change.

Who Is Struggling to Spend Their Retirement Income?

About 25% of retirees fall into the camp of people who decrease spending during retirement.

Moreover, research suggests this problem may worsen. Researchers found that the issue was most pronounced with individuals who use their own savings for retirement income--whereas people with guaranteed sources of income, such as annuities, Social Security, and pensions, were more likely to spend their income.

Why Do People Have Trouble Shifting From a Saving to Spending Mindset?

One line of thinking posits that people simply don't need to spend as much in retirement. For example, when people retire, they may experience a drop in work-related expenses. They may be able to spend more time doing things they had to pay for in the past--now making meals at home or mowing their own lawn--and searching for the best deals for their purchases. And they may pay off their mortgage, thus decreasing their expenses.

Another line of thought points to more psychological reasons behind a change in spending patterns.

Before retirement, a person may be more susceptible to present bias (the tendency to focus more on the present situation at the expense of long-term planning) because their future labor income is uncertain, and they don't yet feel an ownership of that money. That uncertainty gives them the flexibility to think things like, "I'll work more hours next month to make up for this trip," or "My boss will cough up that bonus soon."

However, after retirement, they are on a fixed income and the money they are spending is coming from their own pocket. This shift triggers loss aversion--that is, the desire to avoid losses outweighs the desire to experience gains. In retirement, we know that overspending today will result in a sure loss in future consumption. In a world where that future you is 85 years old and unable to work, that future loss looms much larger than an extra extravagance today.

How to Manage Retirement Spending Woes

Every retiree is different, and different explanations may ring true based on their personal circumstances, so retirees may benefit from taking stock of their retirement spending.

Start by gauging your financial affairs and have a clear understanding of how much you can spend.

Try tracking your spending using an online tool that breaks down spending by category. It's ideal to do this before you retire, but not essential. On a quarterly basis, check your overall spending and take note of any categories where your spending patterns have changed. Do these changes align with your financial goals? Did your spending on eating out suddenly drop, even though you love trying new cuisines with friends?

The Pieces to the Retirement Income Puzzle

If you fall into the underspending camp, research suggests that people using guaranteed income sources are more willing to spend their income.

If you don't want to take the leap to guaranteed income sources, try reframing your retirement income as a paycheck that someone else is paying you.

Although not spending enough money in retirement may not be a universal problem, it does represent a huge, missed opportunity for the retirees in question. It's important to remember that this is the money you've spent years toiling over and protecting. Now, during a long and happy retirement, is the time to put that money and free time to good use, funneling both resources into your version of a life well-lived.

---

This article was provided to The Associated Press by Morningstar. For more personal finance content, go to https://www.morningstar.com/personal-finance

Samantha Lamas is a senior behavioral researcher at Morningstar.

Continue Reading...

Popular

Cathie Wood's Ark Invest Loads Up On Archer Aviation, Nextdoor Holdings

On Friday, Cathie Wood-led Ark Invest made substantial trades in ACHR, KTOS, and KIND. Total value of the trades is over $35 million.

Elon Musk's Bombshell About Donald Trump in Epstein Docs: Here's the Truth Behind the Claim

Elon Musk's claim regarding President Trump's connection to the undisclosed Jeffrey Epstein files has ignited a political uproar.

How To Build a Home in Nearly 4 Hours - Ad

The U.S. is short 2.3M homes, making affordable, efficient housing critical. BOXABL brought assembly lines to construction, building homes in hours, not months. With 700+ built and one of America's largest homebuilders as an investor and partner, they're growing fast.

AMC Eyes Ad Revenue Lift With Premium Pre-Movie Ads

AMC reaches agreement with National CineMedia to run more advertising in theaters. AMC to receive a cut of ad sales. Stock up 0.29% at $3.41.

Trump Supports Arrest Of California Governor Gavin Newsom As US Deploys 700 Marines To Los Angeles

700 Marines deployed to LA in response to protests against Trump's immigration policies. CA files lawsuit, Newsom calls it a serious breach of state sovereignty. The President supported the arrest of California's governor.

The Father-Son Duo Revolutionizing Homebuilding - Ad

Paolo and Galiano Tiramani founded BOXABL with a disruptive idea: bring factory efficiency to homebuilding. Today, new homes can roll off their assembly lines in ~4 hours - with 700+ built already. Now, they're prepping for Phase 2, combining modules into larger homes and apartments.

AstraZeneca Highlights Significant Gains Across Three Major Cancer Trials At ASCO

AstraZeneca reports major survival benefits in breast and gastric cancer trials with Enhertu, Imfinzi, and camizestrant at ASCO 2025.

To prevent blackouts, Trump administration keeps an aging power plant online through summer

HARRISBURG, Pa. (AP) — The U.S. Department of Energy has ordered another power plant, this time an oil and gas plant in Pennsylvania, to keep its turbines running through the hottest summer months as a precaution against electricity shortfalls in the 13-state mid-Atlantic grid.

How to Hack a $1.3T Market - Ad

Forget concrete. The new foundation for real estate success is digital, and Pacaso leads the way. Their tech unlocks a $1.3T real estate market. They've already earned $110M+ in gross profits in their operating history and reserved the Nasdaq ticker PCSO.

Peter Schiff Says It Was His Economic Teachings That Made People Want To Buy Bitcoin: 'An Unintended Consequence'

Peter Schiff said Monday that his teachings on economics inadvertently led many to invest in Bitcoin (CRYPTO: BTC), despite his advice against it.

Cathie Wood Praises Elon Musk, Says He Is 'The Thomas Edison Of Our Age', Names Tesla As Her No. 1 Stock Pick For The Long Term

Elon Musk recently shared a post in which ARK Invest CEO Cathie Wood lauds him as the 'Thomas Edison of our age,' a testament to his transformative impact on humanity.

How high will Bitcoin go in 2025? - Ad

A new coin is emerging in the crypto bull market. Investing now could be like buying Bitcoin in 2013. Before it took off. Or scooping up Ethereum in 2017.. before it soared.

The election of a Trump ally in Poland could alter EU and Ukraine policies

WARSAW, Poland (AP) — Poland has elected , a conservative historian and staunch nationalist, as its next president in a closely watched in the heart of Europe.

Steve Jobs Would 'Have Fired Everyone': Apple's Liquid Glass In iOS 26 Gets Roasted Online — Dan Ives Calls WWDC 2025 A 'Yawner'

Apple's new "Liquid Glass" design in iOS 26 is facing backlash for prioritizing aesthetics over usability, with critics — including investor Ross Gerber — suggesting Steve Jobs would have never approved the change.

Why BlackRock is Hoarding 6X More Bitcoin Than Miners Produce - Ad

A Bitcoin supply shock is building. Institutions and ETFs are buying faster than miners can keep up - creating a shortage most investors haven't noticed. If Bitcoin hits $300K, altcoins could explode 1,000%+. We wrote Crypto Revolution to help you prepare.

Peter Lynch: 'We Are Not Saving Enough Money, That's The Most Single Important Thing People Have To Do, They Have To Save Some More'

Peter Lynch once emphasized the necessity for the American public to increase their savings, citing the lack of incentives in the current system to encourage this behavior.

The Stock Ticker Notable Investors Are Holding - Ad

They may not be trading on public markets, but Pacaso just reserved the ticker PCSO. Co-founded by the man who took Zillow from seed to IPO, Pacaso brings co-ownership to a $1.3T market. They've earned $110M+ in gross profits already. Well-known firms like Maveron even invested.

Musk threatens to decommission a key space station link for NASA

As President Donald Trump and Elon Musk on Thursday, the world's richest man threatened to decommission a space capsule used to take astronauts and supplies to the International Space Station.

Leonard Lauder, philanthropist who globalized family cosmetic business, dies at age 92

NEW YORK (AP) — Leonard Lauder, a renowned philanthropist who expanded the family cosmetics business into a worldwide empire, has died at the age of 92.

A Better Hedge Than Gold? - Ad

While the whole world is piling into gold as a hedge... White House documents reveal Trump is betting big on a completely under-the-radar resource. This little-known resource is minting 1,600 millionaires every single day... And investors have a rare opportunity to take advantage before everyone else catches on.

Dogecoin Drops Over 9% On Friday Morning: What's Going On?

Dogecoin (CRYPTO: DOGE) tumbled 9.14% to $0.1726 on Friday as a public dispute between President Donald Trump and Tesla Inc.

Former Zillow Execs Target $1.3T Market - Ad

One co-founded Zillow. The other sold his company to Zillow for $120M. Now they're transforming a $1.3T market via co-ownership. Pacaso's already earned $110M+ in gross profit and reserved the Nasdaq ticker PCSO.

Shaquille O'Neal to pay $1.8 million to settle FTX class action lawsuit

Former NBA player Shaquille O'Neal will pay $1.8 million to settle a class action lawsuit related to the demise of cryptocurrency exchange FTX.

Is Elon's Empire Crumbling? - Ad

Jeff Brown - the legend who called Tesla and Nvidia early - says Elon is about to launch a $25T AI revolution. This isn't another chatbot. It's real-world AI that could 14X the impact of ChatGPT. But after July 23rd, it may be too late.

Asian shares slide as Russia-Ukraine conflict, OPEC+ output plan push oil prices higher

HONG KONG (AP) — Asian shares sank on Monday and oil prices jumped as trade tensions and the ratcheted up geopolitical uncertainty.

Shoppers are wary of digital shelf labels, but a study found they don't lead to price surges

Digital price labels, which are rapidly replacing paper shelf tags at U.S. supermarkets, haven’t led to , according to a new study that examined five years' worth of prices at one grocery chain.

Exposed: 3 Cent Crypto to Explode June 24th? - Ad

Chris Rowe, the man who spotted 44 different coins that have returned over 100%, is now making the biggest crypto call of his ENTIRE career.... Because a powerful crypto event will trigger on June 24th... Sending hundreds of tiny cryptos soaring 5X, 50X, even 100X -- in just days.

Consultant behind AI-generated robocalls mimicking Biden goes on trial in New Hampshire

CONCORD, N.H. (AP) — A political consultant who sent voters mimicking former President Joe Biden last year went on trial Thursday in New Hampshire, where jurors are being asked to consider not just his guilt or innocence but whether the state actually held its first-in-the-nation presidential primary.

US and Europe trade negotiators discuss tariffs in Paris

PARIS (AP) — Europe and the United States are meeting in Paris to negotiate a settlement of a tense tariff spat with global economic ramifications between two global economic powerhouses.

How To Build a Home in Nearly 4 Hours - Ad

The U.S. is short 2.3M homes, making affordable, efficient housing critical. BOXABL brought assembly lines to construction, building homes in hours, not months. With 700+ built and one of America's largest homebuilders as an investor and partner, they're growing fast.

The euro is about to get a new member, Bulgaria. What's the eurozone and how do countries join?

FRANKFURT, Germany (AP) — European Union officials gave the green light Wednesday for of the euro currency union,, a key EU project aimed at deepening the ties between member countries.

The Father-Son Duo Revolutionizing Homebuilding - Ad

Paolo and Galiano Tiramani founded BOXABL with a disruptive idea: bring factory efficiency to homebuilding. Today, new homes can roll off their assembly lines in ~4 hours - with 700+ built already. Now, they're prepping for Phase 2, combining modules into larger homes and apartments.

Elon Musk Scrubs His Social Media of Trump-Related Posts Amid Public Feud

In the latest development in their public feud, Elon Musk has taken down a series of social media posts that were critical of President Trump.

Hasbro Cuts 3% Of Global Workforce: Report

Toy company Hasbro Inc (NASDAQ:HAS) announced a workforce reduction on Tuesday as the company grapples with tariff impacts.

How to Hack a $1.3T Market - Ad

Forget concrete. The new foundation for real estate success is digital, and Pacaso leads the way. Their tech unlocks a $1.3T real estate market. They've already earned $110M+ in gross profits in their operating history and reserved the Nasdaq ticker PCSO.

UN nuclear agency members draft resolution accusing Iran of failing to meet obligations

VIENNA (AP) — Western nations are planning to table a resolution at a meeting of the U.N.’s nuclear agency that will find Iran in non-compliance with its so-called safeguards obligations for the first time in 20 years, a senior western diplomat said Thursday.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright markethundred.com
Privacy Policy | Terms of Service