A fresh perspective on retirement

 

Bill Perkins, author of "Die with Zero," has a unique approach to retirement savings. He hopes to spend every penny before he dies, and believes that many people are saving too much for retirement. Perkins argues that a significant amount of retirement savings often goes unused, and that people should focus on living in the present rather than hoarding wealth for the future.

Perkins cites four reasons why people may not need to save as much for retirement as they think. Firstly, net worth tends to increase in retirement, with about a third of retirees actually seeing their net worth increase. Secondly, healthcare costs are high, but no amount of money can cover the worst-case scenarios, so it's better to focus on maintaining health and preventing disease. Thirdly, people tend to decrease their expenses naturally in retirement, and overspending is not a significant issue. Finally, most people only spend a portion of what they have saved, with many retirees having spent down only a small percentage of their assets 20 years after retirement.

Perkins' approach goes against traditional retirement planning logic, but he believes that people should focus on living and having meaningful experiences while they're able, rather than saving for the future at the expense of the present. He argues that it's better to spend money on experiences, helping children while they're starting out, and covering needs, rather than leaving a large inheritance.

Perkins' book "Die with Zero" challenges traditional retirement planning and encourages people to rethink their approach to savings. He believes that people should focus on living in the present and enjoying their wealth, rather than hoarding it for the future. While saving too much isn't inherently bad, it can prevent people from doing the things they want to do while they're still able.

Perkins' approach may not be for everyone, but it's an interesting perspective on retirement savings. By focusing on living in the present and enjoying wealth, people can make the most of their retirement years and create meaningful experiences.