Spending Changes as You Age

NPR had an interesting story on how spending changes as you age.  In the obvious department, you drink less starting about retirement age (50-ish), and you spend significantly less on non-durables as you age from there (just like Bernicke’s retirement spending model).

In the interesting department, utilities seem to continually creep up.  I’m guessing that this is accounted for by larger homes, more people living in those homes, and the tendency for older folks (at least in my family) to keep the heat up or the AC on high.

The study was from a general population, but I wonder how it would differ if it were restricted to early retirees or those who claimed to be on that path.  Definitely difficult to get data, but it would be interesting.

How do you think the graph would change among early retirees or those that are planning for early retirement?

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