Yes, it’s a condition a financial writer dubbed legitimate. Retires who suffer from spendaphobia save throughout their lifetime but have difficulty transitioning to spending some of those hard-earned assets during retirement.
Smart seniors know they must have enough of a nest egg if they incur large medical expenses or other unforeseen issues late in life. They also know that spending it all too soon leaves them in a precarious predicament during their waning years. However, with smart budgeting and planning, you may find that now is an excellent time to buy that cottage on the beach and enjoy your retirement years watching the sunrise or sunset.
A full-fledged retirement budget can help you decide when it may be time to splurge. Blackrock provides a retirement expense worksheet allowing you to itemize as many as 50 expense items. Compare this with a retirement income calculator offered by T. Rowe Price to determine if your savings will last a lifetime. You may find you have more than enough to last a lifetime. If not, you can begin making adjustments immediately.
Two studies found that seniors who spend more on travel, entertainment, and hobbies are happier. Those giving back through charitable contributions and volunteering are also happier and have a stronger sense of purpose.