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Retirement Guru: Budget Rules for Retirees
A Tailored Approach
Retirement is a unique financial phase that requires a budget reflecting shifting priorities according to lifestyle and anticipated costs. The traditional 50/30/20 rule does not lend to successful retirement living that balances essential expenses, discretionary spending, and financial resilience.
A Smarter Approach for Retirees
Retirement isn’t a one-size-fits-all journey as financial priorities will evolve as we age. This requires that our budget rules adapt to these different stages of life. The traditional 50/30/20 rule no longer fits. Instead, varying budget rules will provides a more practical approach, adjusting for changing expenses across key retirement phases: 50 to 60, 60 to 70, 70 to 80, and 80 and beyond.
Up to Age 50 — Building a Strong Financial Foundation
During this phase, individuals are actively growing their careers and financial resources. The traditional 50/30/20 budget rule applies:
