Here’s an interesting contrarian point of view, and one with which financial planners will surely disagree: You may be saving too much for retirement.
However, the facts won’t get in the way of financial planners’ advice:
Bob Veres, who runs a newsletter and forum for financial planners, thinks most advisers will stick to the way they’re currently projecting retirement needs. The consequences of being wrong — of advising an earlier retirement or a more aggressive withdrawal rate — are simply too great.
The MSN article points out two “holes” in the revised spending theory: The data doesn’t include long term care expenses and well-off retirees spend more in early retirement as they travel around the world.
Updated February 6, 2012 and originally published July 18, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.