The period during which an individual spends the retirement savings that he/she accumulated to finance his/her retirement. In an ideal situation, the spending phase occurs after the individual has retired. However, in this era where an increasing number of individuals are experiencing working-retirements, the spending-phase and the accumulation phase sometimes occur concurrently.
Additional Helpful Information
During the spending phase, an individual must take care to implement a strategic spending program, where a determination is made as to the most financial-effective order his/her assets should be spent. For instance, in which taxable (tax-deferred) , non-taxable and trax-free assets should be spend.