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Why retirees should avoid being frugal with their savings


The Globe and Mail
Brenda Bouw
Published April 9, 2021
Andrey Popov/Getty Images/iStockphoto
Investors are told throughout the course of their lives to spend less and save more if they want a comfortable retirement. For some, those frugal habits can be hard to break once they stop working – even if they’ve saved more than they could hope to spend for the rest of their lives.
Case in point: Recent research from U.S. asset-management giant T. Rowe Price shows many retirees are focused on asset preservation.
“Conventional retirement income planning assumes that retirees want to maintain a certain standard of living or a certain level of spending and attempt to generate enough income to support that spending level,” the report says. “But the data suggest that the opposite might be true. People are flexible about their spending and adjust it to match their income so that they can avoid drawing down their assets.” ....

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Can Bernadette help her children buy homes of their own without jeopardizing her retirement goals?


The Globe and Mail
Published February 19, 2021
Fred Lum/The Globe and Mail
Bernadette’s life has changed in a heartbeat, leaving her uncertain about where she stands financially. “As my husband passed away suddenly last year at age 59, I probably could use some advice as to how best to plan my future,” Bernadette writes in an e-mail. She is age 63 and earns $64,000 a year working in the travel industry. She gets $490 a month from the Canada Pension Plan survivor’s benefit. Her two children, who are in their early 20s and still living at home, give her money each month for groceries. ....

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