What do people really do in retirement?
According to Paul Brown’s What’s Offline column in the New York Times, people go through three stages in retirement:
- The traditional things people plan for in retirement – travel, new hobbies, gifts to family.
- After that, they settle back into the life that made them comfortable before they retired.
- In the final phase they tend to have increased health problems.
So he contends that you should do financial planning with those three phases in mind.