Long before retirement, it is usually easier for people to live up to the standard they want, as much as their earnings support.
However, as the years pass by, needs arise which necessitate expansion. Family expands, taste increases, and so do the bills.
Earnings also increase as well; thus, depleted savings can be replaced. Activities such as vacations, entertainment and outings which takes off large chunks from financial savings are limited to certain periods of the year due to work engagement.
During retirement however, there is no more regular 9 to 5 (or perhaps 10) to while away time, no business meetings, early morning flights, weekend work to meet up with client’s demand etc., and definitely no big salary at the end of the month.
But there is still energy and time! There is an additional five (previously working, now free) days ex weekend, virtually all the time in the world, to do more of what you did less while employed, thus creating avenue to be more engaged in activities that require spending.
People usually tend to increase their standard of living as they advance in employment and, having enjoyed that for quite a number of years, it is believed that retirement should even be better.
This is usually not the case especially for someone who has not made adequate financial plans for retirement.
This is because retirement benefits may not be high enough to match late employment lifestyle. The net effect on both investments and retirement savings during this period is therefore depletion.
Further diminishing retirement savings and benefits is the cost of healthcare.
As people get older, the chances of spending more on healthcare is almost certain. Unexpectedly, some ailments developed require constant management, more frequent hospital visits, medical tourism etc.
Things might even get worse during late retirement years as the body becomes frail. Although one could argue that there is an improvement in healthcare delivery, this also lengthens life expectancy.