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Retirement Planning Shifts to Spending and Income Strategies as Savings Fall Short

Fresh advice highlights five-year cash buffers, careful benefit timing, flexible budgets to reduce the risk of outliving savings.

Overview

  • New guidance urges retirees to hold roughly five years of income needs in safer assets, track expenses closely, and adjust spending to market conditions.
  • Advisers emphasize thoughtful Social Security decisions, noting the average monthly benefit is about $1,955 and that most scheduled benefits are still projected to be funded even after 2033.
  • Americans say they need about $1.26 million to retire comfortably, yet official data show far lower typical balances for near‑retirees, underscoring the planning gap.
  • Health shocks can upend plans, with CareScout citing average costs of $6,483 per month for a home care aide and $9,277 for a semi‑private nursing home room.
  • Experts warn against high‑risk catch‑up bets and point to practical levers such as working longer, tax‑aware withdrawals and Roth strategies, and relocating to lower‑cost areas.