Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 79

Reader question about life after 75

John sent this fascinating question to our mailbox last week. We'd love to provide him with some answers. Please comment if you can.

"Everybody seems to ponder the question, do i have enough $$ to see us through.

I am 68, my wife 69 and we have no liabilities, no children to leave anything to ... so we spend, not over the top but I often wonder would I spend the same amount of $$ in 10 years time when (and if) I make it to 78. Would we go out as much as we do now, would we travel as much (tiring a bit now of the long haul to Europe and the US).

It would be interesting to hear from some of your readers who are now in their late 70s or early 80s … what is their experience in the matters i have raised?"

 

9 Comments
Andrew Bloore
September 19, 2014

Having spent many years as an administrator of SMSF's the trend I have observed over 25 years of doing this, is, that people for the first 5 years after retirement spend 20% more money than the year before their retirement (holidays, new clothes, new car more dinners out etc) then it reduces back to about the same as the pre retirement year and progressively increases with CPI. What its spent on changes over time but generally not the quantum. I know this is a generalisation and as such it is an "averages" result to a question for a specific individual.

Rob Gould
September 16, 2014

John
I have been advising clients for many years and there are two things that are apparent.
First the generation that is now 70+ is perhaps more thrifty and as they get older seem to focus on saving even more. I do not understand it but it is a very common theme.
Second as activity reduces so does spending. This activity reduction is simply due to age, energy level and health, which I have seen happen to all my clients ( +40 clients) as they move through their 70's and 80's. The problem is each has their own time for this to occur.

However, a critical extra cost that is now arising is what age care do you want if it becomes necessary, as the cost varies by level and to some extent quality of the care and accommodation.

I am always suggesting to my clients to enjoy themselves along the journey as I have seen ill health or unexpected events stop future plans. So as long as you know what life you what later then enjoy it now as well.

John Rogers
September 13, 2014

Thank you for your responses to my question and i had a chuckle at John (sholl) wistful remark on hospitals and cruise liners ...but after hearing today of the death of Nicole Kidmans Dad who seem to very fit i am inclined to press on spending and worry about it all down the track.

john (sholl)
September 12, 2014

I am in my early eighties and my wife and I have a SMSF comprising a portfolio of Australian and US stocks which has both growth and income parameters. Our aim was to have a steady income and slowly increase the capital in the SMSF over time to counteract inflation. To this date, the aims have been achieved using the assistance of a reputable stock broker and an accountant. The amount we spend annually has not diminished, but the items we spend it on have changed. You tend to spend more time in hospitals and less on cruise liners as you age.

Brian
September 12, 2014

My wife and I are 66 and typically we travel overseas twice a year. We travel on a fairly tight budget but travel is the single biggest item in our annual budget. Looking forwards I don't see any major change in our non travel expenditure.

With regards to travel I think we may want to only go overseas once a year as we get older but when we do it will be a higher standard of travel and accommodation. So basically I do not envisage any great change in our after inflation expenditures.

This is a personal viewpoint and of course health concerns may result in us not going overseas at all. In the end I think planning for old age needs to be at a personal level. I don't find surveys of how other people's incomes on average varied with age to be useful. These are averages often taken in the past in other countries taking no account of the health of the individuals involved.

Douglas
September 12, 2014

I am 77 with a 66 year old wife, since retirement 4 years ago we have travelled overseas on an annual basis, yes the costs are fairly significant; however we do not plan to continue these treks forever. We are in good health and enjoy a great lifestyle, manage our own retirement pensions and have a good mix of over the counter indexed bonds, plus cash and equities. We figure that our zest for travel overseas is waning and the A$ does not have as much purchasing power as the past few years, so accordingly we will see more of Australia before we get to the age where we can,t be bothered!
So, I go back to Alex,s reply to John and say to all retirees, every person has different objectives and needs in retirement, so there is no one answer.
However, if you have the money, travel whilst you are in good health, then you will have no regrets in your "real" old age.

Warren Bird
September 10, 2014

I'm in my late fifties now and intend to be travelling, dining out, going to theatre, etc just as much in 10, 20, 30 years from now.

My wife and I did a hiking tour in Italy a couple of years ago. We were among the youngest there! There were several in their late 70's/early 80's including a couple from South Africa who do a hiking tour every year. The lady was one of the quickest walkers in the group.

Everyone will be different. It depends on health, interests, etc. But if you plan on slowing down, you probably will. You reap what you sow.

Alex
September 12, 2014

Warren, all power to you.

My reading of the article I refer to is that you are in the majority for late 50's and their future life style plans (I am late 50's too), but that the "reality" (based on surveying those 60's, 70's year old etc) does not really match it.

The survey data shows average expenditure reduces with age brackets, rather than increases (ie the standard 70% of your working income plus 3-4% inflation every year for the rest of your life), and this has significance for those pondering "how much do I need".

The survey is saying on average those knees of yours will not agree with your current ambitions down the track.

I would simply ask the question (which is John's original one). If we are all to base our retirement planning based around essentialy one big assumption, which is more accurate? Your life style costs on average increase with age or in fact decrease? The modelling on "how much do you need" changes significantly.

Alex
September 09, 2014

John, a very good question. Please Google the following article. “FDA Journal – Reality Retirement Planning” . An American article from 2005 by Ty Bernicke. This addresses exactly your point. It makes a lot of sense to me but is not reflected in any advice i have seen on “how much do you need?”.

 

Leave a Comment:

banner

Most viewed in recent weeks

16 ASX stocks to buy and hold forever, updated

This time last year, I highlighted 16 ASX stocks that investors could own indefinitely. One year on, I look at whether there should be any changes to the list of stocks as well as which companies are worth buying now. 

2025-26 super thresholds – key changes and implications

The ABS recently released figures which are used to determine key superannuation rates and thresholds that will apply from 1 July 2025. This outlines the rates and thresholds that are changing and those that aren’t.  

Is Gen X ready for retirement?

With the arrival of the new year, the first members of ‘Generation X’ turned 60, marking the start of the MTV generation’s collective journey towards retirement. Are Gen Xers and our retirement system ready for the transition?

Why the $5.4 trillion wealth transfer is a generational tragedy

The intergenerational wealth transfer, largely driven by a housing boom, exacerbates economic inequality, stifles productivity, and impedes social mobility. Solutions lie in addressing the housing problem, not taxing wealth.

What Warren Buffett isn’t saying speaks volumes

Warren Buffett's annual shareholder letter has been fixture for avid investors for decades. In his latest letter, Buffett is reticent on many key topics, but his actions rather than words are sending clear signals to investors.

The 2025 Australian Federal election – implications for investors

With an election due by 17 May, we are effectively in campaign mode with the Government announcing numerous spending promises since January and the Coalition often matching them. Here's what the election means for investors.

Latest Updates

World's largest asset manager wants to revolutionise your portfolio

Larry Fink is one of the smartest people in the finance industry. In his latest shareholder letter, the Blackrock CEO outlines his quest to become the biggest player in private assets and upend investor portfolios.

Economy

Australia's economic report card heading into the polls

Our economy grew by a nominal rate of 7% per annum from 2017 to 2024, but it benefited from the largesse of fiscal and monetary policies, both of which are now fading. We need a new, credible economic growth agenda.

Preference votes matter

If the recent polls are anything to go by, we are headed for a hung parliament at the upcoming federal election. So more than ever, Australians need to give serious consideration to their preference votes.

SMSF strategies

Meg on SMSFs: Tips for the last member standing

It’s common for people as they age to seek more help in running their SMSF if their capacity declines. An alternate director may be a great solution for someone just planning for short-term help in the meantime.

Wilson Asset Management on markets and its new income fund

In this interview, Matthew Haupt from Wilson Asset Management discusses his outloook for the ASX, sectors such as REITs that he likes, and his firm's launch of a new income-oriented listed investment company.  

Planning

‘Life expectancy’ – and why I don’t like the expression

Life expectancy isn't just a number - it's a concept that changes with survival rates over time. This article breaks down how age, survival, and societal factors shape our understanding of life expectancy, especially post-Covid. 

The shine is back on gold, and gold miners

Gold mining stocks outperformed in 2024 and are expected to do well in 2025. At this point in the rally, it's worth considering what has driven gold prices higher and why miners could still have some catching up to do.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.