10/30/2026
In retirement planning, people often account for all their spending the same way, as if every dollar leaving the account carries equal weight. But there’s a meaningful difference between the money that keeps the lights on and the money that makes life worth living.
Essential expenses — housing, food, health care, utilities — need to be covered. There’s no doubt about that. But discretionary spending — travel, hobbies, dinners out, gifts to grandchildren — is where much of retirement actually happens.
Understanding the difference between these two categories, and planning for both, can help ensure that the experiences you’ve worked towards aren’t the first things sacrificed when things get bumpy.
This is why thoughtful income planning matters.