Advisers urged to encourage 'frugal' retirees to spend more

6.4% of over 80s saving for end of life needs

Sophie King
clock • 2 min read

Timeline CEO Abraham Okusanya has warned that retirees spending too little is as big as a problem in spending too much and that advisers play a crucial role in getting the balance right.

In a white paper, titled Retirement Spending Pattern - Implications for Retirement Income Sustainability, Okusanya outlined the patterns and trends in how expenditure changes in retirement. He referred to a study by the International Longevity Center, which found that the average retirement expenditure patterns in retirement do not follow the so-called U-shaped path, i.e. consumption does not rise at the start of retirement and then pick up towards the end of life to meet long-term care related expenditures. A household headed by someone aged over 80 spends on average 43% less than a ...

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