RETIREES AND THE ECONOMY

Lifestyle and expenses during retirement are often different from those during one’s working life. It’s generally accepted that, once retired, 70% of previous income is needed to cover daily living expenses.

Generally, pensions represent a significant loss of income for any category of employment, which can be as much as 50% of salary. Many people maximize savings in the years leading up to retirement, and some find ways to keep on working and supplement their finances.

Economic decline tends to be more drastic among women. It is women (especially those living alone) who complain the most about the decrease in their income. In general, they earned less than men, had shorter working lives and made fewer Social Security payments. For all these reasons, their public pensions are lower and their savings smaller.

Many retirees talk about having to review their consumption patterns, being more selective when it comes to shopping, and having to give up some indulgences that added some spark to their lives.

How much does one’s financial situation influence the way one adapts to retirement? There’s a relationship, although not exclusive, between the money available and the range of possible plans. Retirees with more money or a higher pension have a wider choice of activities and hobbies to choose from, while those with more limited resources are restricted in their initiatives. However, in addition to a basic income, curiosity, a willingness to learn and the ability to enjoy oneself are just as important for a fulfilling retirement. The keys lie in adapting creatively and taking full advantage of available opportunities or those that you can create yourself.