5 Best Things article – Challenging the Three Phases of Retirement Spending: Insights from Toronto-based Financial Planner Ed Rempel

For years, retirement planning has relied on the idea that spending naturally declines as we age.

First the “go-go” years.

Then the “slow-go.”

Then the “no-go.”

After decades of working with retirees, I believe this is not how retirement actually unfolds for many people, and planning for it locks retirees into declining travel, whether they want to or not.

I have clients in their mid-80s who travel just as much as they did at 65. In some cases, they spend more. The difference isn’t whether they travel. It’s how they travel. More comfort. More convenience. Less physical strain.

What often limits people isn’t health. It’s money — or uncertainty about money.

In this article for “5 Best Things”, I explain:

• Why spending often stays surprisingly consistent throughout retirement
• Why many retirees scale back because of financial caution, not physical decline
• The risk of building plans around sharply falling spending
• Why assuming steady spending is usually the safer approach
• How a proper financial plan gives you the confidence to enjoy retirement without second-guessing

Retirement today looks very different than it did for previous generations. Planning assumptions need to catch up.

Instead of planning for decline, I believe we should plan to maintain the lifestyle you want for as long as you live.

CLICK THE LINK BELOW TO READ THE FULL FEATURE HERE:

Challenging the Three Phases of Retirement Spending: Insights from Toronto-based Financial Planner Ed Rempel

Challenging the Three Phases of Retirement Spending: Insights from Toronto-based Financial Planner Ed Rempel

For years, retirement planning has relied on a familiar idea. Retirement is often described as having three stages: the early “go” years filled with travel and activity; the “slow-go” years when spending eases; and the “no-go” years when health limits choices and expenses decline. This model is widely accepted and still forms many financial plans. 

Toronto-based financial planner and blogger Ed Rempel believes this framework no longer reflects how retirement actually unfolds for many people, and planning for it locks retirees into declining travel, whether they want to or not.

Based on years of working with retirees who have both financial stability and good health, Rempel says spending patterns are usually more consistent than planners expect. In many cases, people continue to travel and enjoy life well into their 80s.

“I have clients in their mid-80s who travel just as much as they did at 65. In some cases, they actually spend more on travel,” says Rempel. “Cruises, especially luxury cruises, are full of people in their 80s.”

The key difference, according to Rempel, is not how often retirees travel, but how they travel. Earlier trips might involve budget flights, active trips, or packed itineraries. Later in life, many retirees choose luxury cruises, guided tours, and higher-end accommodations that reduce physical strain and maximize comfort. 

This reality challenges the assumption that aging automatically leads to lower spending. Rempel argues that what looks like a natural decline in spending is often caused by financial limits rather than health issues. It is more likely running out of money that limits them, not health problems.

“People don’t always stop traveling because they can’t. They stop because they’ve run out of money or they don’t feel confident spending it,” says Rempel. 

When savings shrink or income feels uncertain, retirees become cautious. They cancel trips, delay purchases, and scale back experiences. Over time, this behaviour can be mistaken for a normal part of retirement, when it is actually a financial constraint.

Many retirees also don’t have a retirement plan, leaving them not confident that they will have enough for the rest of their lives. I have met a few people with $5-8 million that still hesitate to travel because they are worried it won’t last their entire life. Having a Financial Plan would give them that confidence.

Health does matter, but Rempel believes it is frequently overstated in retirement planning. Many people today remain active longer due to better healthcare, improved fitness, and greater awareness of healthy living. Planning for an early and steep decline in activity can lead to flawed assumptions. 

One of the most common mistakes Rempel sees is assuming that retirees will naturally spend less as they age. Many retirement plans are built around a spending curve that drops significantly in later years. This method can encourage people to spend more early on, believing future expenses will be lower. 

“That assumption causes problems. It usually means they don’t save enough to be able to keep travelling throughout their life. It’s much safer to assume you’ll spend roughly the same amount throughout retirement,” Rempel notes. 

Planning for steady spending creates a more durable financial plan. It reduces the risk of running short later in life and helps retirees make decisions with greater confidence. When spending does not fall as expected, those early assumptions can leave little room to adjust.

Rempel says consistent spending assumptions also improve peace of mind. Retirees who know their lifestyle is sustainable are less likely to feel rushed or anxious. They do not feel pressure to spend everything early or fear that enjoying retirement now will hurt them later. They can be confident they can maintain their lifestyle as long as they live.

“Retirement now looks very different than it did for previous generations. Planning assumptions need to catch up with that reality,” he says. 

Rather than relying on age-based formulas, Rempel encourages retirees to focus on what truly matters. Sustainable spending, flexibility, and long-term choice should guide planning decisions. This includes later years, when comfort and quality often take priority.

By challenging long-standing beliefs, Rempel hopes to change how people approach retirement planning. Instead of planning for decline, he believes people should plan to maintain their desired retirement lifestyle for life. With the right strategy, retirement does not have to shrink over time. For many, it can be active, comfortable, and fulfilling, providing security and freedom well into later life.  

Ed