Spending Phase

AAA

DEFINITION of 'Spending Phase'

The period in a person's life following retirement in which earning income has come to a stop and the person is living off government subsidy, retirement plans, investments and/or money saved for retirement.

INVESTOPEDIA EXPLAINS 'Spending Phase'

During the spending phase of a person's life, income may decrease substantially, but this likely coincides with a decrease in expenses. Children are usually no longer dependent on their parents in the spending phase, and major assets (such as mortgages) may be paid off. Traveling, relaxing and enjoying retirement are the principle goals of someone living in their spending phase.

RELATED TERMS
  1. Nest Egg

    A substantial sum of money that has been saved or invested for ...
  2. Entrance Fee

    A term that can refer to any charge for admission. However, it ...
  3. Individual Retirement Account - ...

    An investing tool used by individuals to earn and earmark funds ...
  4. Pension Shortfall

    A situation in which a company offering employees a defined benefit ...
  5. Registered Pension Plan - RPP

    A form of a trust that provides pension benefits for an employee ...
  6. Retirement Readiness

    The state and/or degree of being ready for retirement. Retirement ...
Related Articles
  1. Retirement

    Will Your Retirement Income Be Enough?

  2. Taxes

    How To Save More For Your Retirement

  3. Entrepreneurship

    What Makes Investors Tick?

  4. Whether you're a saver or a financial advisor who want to give their clients a leg up, these 8 tips are essential for financial planning.
    Investing Basics

    8 Essential Tips For Retirement Saving

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center