2. Spending Requirements
The requirement size of the retirement portfolio will be defined the realistic expectations about post-retirement spending habits. Most of us think that after retirement, the annual spending will come down by 20-30 percent, which is completely a wrong notion. Logically when a retiree no longer works for eight or more hours a day, he has more time to span on other activities like shopping, travel etc. which ultimately are expensive activities. Hence a perfect retirement spending goals help in the process of planning, as more spending in the future requires additional savings today.
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