Now I’m in my mid-fifties, retirement is on my mind more than it was ten years ago for obvious reasons. Certain questions go around and around in my mind. The main culprits are “Will I Have Enough Money To Retire At 60?” and “Will My Money Last If I Do?”
However, after speaking with a financial advisor, I’ve realized I’m asking the wrong questions. It’s not really about the size of your pot. It’s about what you instinctively do with it. In so many cases, retirees have more money than they realize and are unable to actually spend it all.
Nearly half of retirees spend less than they could safely afford because they’re scared of running short. Almost half. These are folks who saved their whole lives sensibly, and they’re still holding back.
I’ve come to think we all have a money personality that kicks in without us thinking. It’s the little voice that says “better not touch it,” or “go on, you’ve earned it,” or “the kids need it more than we do.”
That voice, running on autopilot, does more to shape how your retirement turns out than any budget ever will.
Here’s the tricky part. One of these personalities has a slow leak most people never spot in the mirror. It isn’t always the obvious big spender. Sometimes it’s the one who feels the most responsible of the lot.
I’ll come back to that. First, see if you recognize yourself in any of these six.
The 6 Retirement Money Personalities
The Under-Spender. You’ve got a comfortable cushion, but touching it feels almost naughty, so you skip the trip, put off the dentist, and talk yourself out of the little comforts you’ve more than earned.
The Splurger. Retirement is your reward, and you’re claiming it, with the cruises and the dinners and the days out flowing freely, because you saved all your life and surely it’ll be fine.
The Family Banker. Your pot doubles as a family safety net, and the “just this once” top-ups for the kids and grandkids have somehow turned into a standing order.
The Panic-Trader. You watch the markets like the weather, cheering the good days and selling in a fright on the bad ones, usually at the worst possible moment.
The Cash-Clinger. You can’t stomach the ups and downs, so nearly all of it sits safe in the bank, where inflation nibbles away at what it can buy, year after year.
The Balancer. You don’t try to predict every last cost; you bend instead, a bigger trip after a good year and a delayed renovation after a poor one, and it keeps you steady.
Recognize yourself? Most of us are mostly one type with a good dash of another. My hubby is a Cash-Clinger married to someone who spends first and thinks later. Trust me, it makes for interesting conversations about the boiler.
