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Episode Breakdown:

Does Spending Drop in Retirement? Yes. But Does Happiness? Not So Fast.​
(0:00) New research on retirement satisfaction that defies traditional financial planning
(24:20) Listener Question: How to add bonds after 10 years of 100% stocks?

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Retirement Headline:

Less Spending, More Smiling: Why Retirees Are Happier Than You Think​
​Source: Think Advisor Magazine by John Manganaro

New research from David Blanchett (yes, the same David Blanchett we talk about all the time), head of retirement research at PGIM, turns a long-standing assumption on its head: that a consistent—or even increasing—level of spending is required to maintain happiness in retirement.

Turns out, that’s not necessarily true.

Blanchett analyzed data from the University of Michigan’s Health and Retirement Study and found something pretty remarkable: retirees actually get more satisfaction out of less spending.

Key Findings:

• Spending drops 20% at retirement—but it’s not a red flag.
• Satisfaction rises with age, even when spending stays flat.
  • Among those spending $20K–$30K per year:
    • Ages 50–54: Only 45% feel financially satisfied.
    • Ages 80+: 84% are satisfied—on the same budget!
• 90% of retirees report being moderately or very satisfied.

​

So, what gives? Blanchett suggests that as retirees age, their priorities shift. Free time, health, relationships, and hobbies take center stage—and those don’t cost nearly as much as we might think. It’s the “been there, done that” effect.

Even more interesting: while 58% of Americans say we’re in a national retirement crisis, only 10% of retirees with even modest savings ($50K or more) feel like they’re in one themselves.

The takeaway? It’s okay if your spending declines over time. That’s not failure—it might be a natural part of growing more content.

Listener Question:

“I’ve Been 100% in Stocks Since I Was 24. When and How Should I Add Bonds?”

This week, we’re hearing from a listener in their early 30s who’s taken Dave Ramsey’s advice to heart and gone all-in on stocks for the past decade. But now, they’re starting to wonder: When’s the right time to start shifting toward bonds?

Let’s break it down.

Listener’s Current Plan:

• 100% stock allocation
• Wants to be 70/30 or 60/40 by retirement
• Considering:
  • Reallocating all at once (but nervous about timing)
  • Sending new employer match into bonds
  • Keeping Roth 401(k) in equities for growth

First of all—props to this listener for being way ahead of the curve. This is exactly the kind of proactive thinking we love to see. So, what’s the best way forward?

Our Advice:

• Avoid market timing.​
  If you feel like making a move because markets are high—or low—that’s your emotional brain talking.
• Automate your transition.​
  Set a glide path: Slowly rebalance over time by increasing bond allocation 1–2% per year.
• Use new contributions.​
  Send all new match money into bonds while keeping your Roth 401(k) aggressive. This nudges your portfolio gradually without big swings.
• Add structure with guardrails.​
  For near-retirees, remember our Retirement Income Guardrails strategy: Increase income when your portfolio hits a high watermark; reduce or adjust when it dips below your lower guardrail.

What About Market Highs?

You might think the S&P 500 hitting a new high means a correction is around the corner—but the data tells a different story.

• The S&P 500 has hit an all-time high on 7% of trading days since 1928.
• That’s about 30 times a year.
• If we count days within 5% of a high? That’s 40–45% of the time.

So don’t let the headlines fool you. Markets spend a surprising amount of time near the top—and that’s totally normal.

How to Manage Risk Instead:

• Track your Retirement Runway.​
  Know how many months of spending you have in bonds and cash.
• Implement Guardrails.​
  Have rules in place for when to raise or lower spending based on market conditions.
• Stick to the plan.​
  Long-term investors are rewarded for staying the course.

Final Thoughts

Whether you're 34 or 64, the earlier you build a boring-but-beautiful plan, the better. Remember: great retirement plans aren’t flashy—they’re consistent, adaptable, and built for real life.

And if you’re feeling more content spending less in retirement? That’s not a red flag—it’s a sign your plan is working.

Resources Mentioned

• ​​Click here to read Spending Drops in Retirement, but Satisfaction Doesn't: Blanchett
• ​Click here to order my book, Retirement Starts Today: Your non-financial guide to an even better retirement

That's it for our three hundred and eighty-ninth installment of "Every Day is Saturday." As always, I read (and usually reply to) every listener email. Got a question? Hit reply—you just might hear your name on the show.

Enjoy your “Saturday,”
​Benjamin Brandt