"The greatest risk in retirement isn't running out of money—it's running out of health while still having a full bank account. The most efficient way to spend your wealth is to front-load it into the years when your body can still experience the world."
The Spending 'Smile': 60, 75, 90
Financial planners often assume inflation-adjusted constant spending. Reality is different:
- The Go-Go Years (60-75): High spending on travel, hobbies, and family.
- The Slow-Go Years (75-85): Activity levels drop; spending naturally decreases by 20-30%.
- The No-Go Years (85+): Spending sinks to a baseline, or spikes only for medical/care costs (which are often subsidized).
The Front-Loading Logic
The 5% Rule for a Decade
Strategy: Instead of a flat 4% withdrawal rate for life, you might withdraw **5.5%** for the first 10 years when you are active. You then "Safe-Correct" by dropping to 3% in your 80s. Statistically, this front-loading provides a vastly higher quality of life without significantly increasing your "portfolio failure" risk at the end.
Die With Zero: The Technical Challenge
Bill Perkins' philosophy of "Die With Zero" is a technical optimization problem.
- Memory Dividends: A trip taken at 62 pays "dividends" of 30 years of memories. That same trip taken at 78 pays much smaller dividends.
- Giving Now vs. Later: Inheritance is most useful to your children when they are in their 30s and 40s (mortgages/kids), not when they are in their 60s and you are 90. Give now to see the impact.
Managing the 'Spending Guilt'
Many retirees struggle to pivot from "Saver" to "Spender."
The Solution: Create a separate **"Bucket List Fund"** in a dedicated savings account. Seeing a separate pile of money meant purely for enjoyment makes it psychologically easier to spend it than pulling it from your "Master Portfolio."
Go-Go Audit
Spending Checklist
Identify the 'Big Three'
What are the three things you want to do while you are physically fit? Fund those first, even if it feels 'expensive'.
Model a 'Variable' Withdrawal
Use our Monte Carlo simulation to test a 6% start that drops to 3% later. You'll be surprised how stable the plan remains.
Audit Your Health Horizon
Be realistic. If your family has a history of mobility issues by 75, your Go-Go window is shorter than you think. Act accordingly.
Separate 'Needs' from 'Legacy'
If you have $2M but only need $1M for care, that extra $1M is for your Go-Go years and your heirs. Spend it on the Go-Go years first.
Final Thoughts
Retirement planning is not just about survival; it's about fulfillment. By embracing the "Spending Smile" and front-loading your decumulation, you ensure that your wealth serves your life, rather than your life serving your wealth. The Go-Go years are a gift; fund them with everything you've got.
SimRetire Editorial Team
Canadian Retirement Experts
This guide has been rigorously reviewed by our editorial team to ensure 100% compliance with 2026 Canadian tax laws and CRA guidelines. Our mission is to provide accurate, independent, and accessible financial education for all Canadians.